What Is a Key Result?
Key results measure your progress towards achievement of a given objective. If the objective is the “what”, the key result is the “how” – how you will know if you succeeded. Key results are quantitative and will use a number in the statement. The sum of the key results will result in a desired outcome for the objective and drive the right behavior. The key results must also be measurable. If you can’t collect the data, then you can’t measure your progress towards the key result. Finally, the key results are time-bound and shorter term.
A properly worded key result would look great on your resume.
For example, if a regional sales team has the objective, “Become the most successful sales team in the company by the end of the year”, then the key results could be:
- Achieve new sales of $50m in Q3.
- Add 1,000 new customers in our region by Q4.
- Increase team win rate from 5% to 6% by Q3.
Let’s take a look at these key results against our criteria:
Quantitative: For each key result, there are two values: a starting value (X) and an ending value (Y). We should note that the first two key results have implied start values. Can you guess the start values?
Drive the Right Outcome / Behavior: You are what you measure. Our example is incomplete without having the context of the other team objectives. As a result, we can’t determine if the key results will create a “most successful” outcome. However, we can ask if this set of key results drives good behavior. In our example, the key results balance new sales (bookings) with new customers (go-lives) and operational effectiveness (win rates). This set of key results should avoid a “win at all costs” mentality.
Measurable: In our example, we can assume that the sales team could track new sales, win rates, and customer counts as the quarter progresses. A team should not wait until the end to find out if they achieved the goal.
Time-bound: Each key result has an associated date. Your key results should be less than or equal to the timeframe of the associated objective. Each organization will choose the cadence for objectives and key results. However, most objectives and key results will occur every quarter.
There are a few additional rules to make key results work:
- Each objective should have 2 to 5 key results. We use the word “key” instead of “all”. A team should choose the key results that have the greatest impact.
- The key result should be influenceable by the team. Each team should be able to own the key result at an 80% level.
- The key result should be aspirational and attainable. Setting a higher bar will lead to improved performance and team member satisfaction. The target should be ultimately achievable assuming the team increases their focus and commits to regular activity. We will discuss this later in Principle #3.
- The key results should be both vertically and horizontally aligned. The organization should take care to review key results with your team, leadership, and other dependent teams. Teams should align their behavior so they are working together.
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