Ask Teresa: What’s the Difference Between OKRs and Outcomes?

Teresa Torres addresses a common confusion: how OKRs relate to outcomes. She explains that an OKR pairs an inspiring objective with measurable key results, while an outcome is the change that results from actions. Flipping the usual 'build X to get Y' logic toward 'we want Y, how might we get there?' keeps teams focused on value rather than output. She then walks through translating a business outcome into an OKR, and distinguishes business outcomes from product outcomes, which measure changes in customer behavior that product teams can directly influence. The point is that OKRs are simply a format for expressing any outcome, and the hard work is choosing which outcomes matter.

01Key takeaways

• Treat an OKR as one format for expressing an outcome, not as the outcome itself.
• Start from the outcome you want and ask how you might achieve it, rather than committing to a predetermined output.
• Give key results concrete numeric targets and time periods so progress can actually be judged.
• Translate business outcomes into product outcomes that measure customer behavior your team can directly influence.
• Spend most of your effort deciding which outcomes matter, since the OKR format is comparatively simple.

02Key sections

Defining the Terms

An OKR combines a qualitative objective with quantitative key results, while an outcome is the impact of actions taken. Product work often confuses the two by focusing on outputs.

Flipping from Output to Outcome

Starting with the desired outcome and asking how to reach it opens up more options, including building nothing at all. This shifts focus from output creation to value creation.

OKRs as Expressions of Outcomes

Any outcome can be written as an OKR, but vague key results need concrete targets and time frames to be useful.

Business vs. Product Outcomes

Business outcomes reflect company health, while product outcomes measure customer behavior change that product teams can influence and that drives business results.

Choosing What Matters

The real work is identifying which outcomes matter; once chosen, the OKR format is just a convenient way to communicate them.

03From the post

“What's the difference between OKRs and outcomes? This is by far one of the most common questions I get and there are lots of ways to answer it. Defining the Terms: OKRs vs. Outcomes Here's my response: First, an OKR is comprised of an objective and key results.”

04Frameworks mentioned

Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.