Product Strategy

Define Measurable OKRs

January 15, 2025
6 min read
OKRsKPIsTeam Management

A lot of roles across various teams, especially in startups, do not have KPIs defined. The hiring process begins when team members are overloaded and overburdened with work. They need someone to fill in. The entire growth charter of a new role or a new person joining an organization has to be thought through by the leaders.


Even if there are KPIs, they keep changing and may not be aligned with your goals and skillsets. While it's good to be flexible, setting expectations straight upfront is super important. Else, a company ends up spending a lot of time hiring the wrong people. Once recruited, the person hired also feels lost.


The interview process is often not aligned with the actual role.


Input Metrics vs Output Metrics


Further, usually there are input metrics and output metrics. Your performance is tied up with your output. Your manager is going to give you tasks. However, you also need to provide visibility to your input metrics. Only then course correction becomes easier.


For a sales executive, an output metric always is sales quota/target number. What do you do if you do not hit your target number?


You fall back on your input metrics. For example:

  • If you are in an FMCG distribution company, your input metrics could be the number of retail shops you visited
  • If you are in tele-sales, your input metric could be the number of 'calls connected' with potential customers
  • If you are in a tech-based SaaS startup, your input metric could be number of 'Product Demos completed'

  • A product manager's performance in most places is gauged by the impact the new features had. However, if the shipped feature did not have the desired impact, a fall back could be to see the number of PRDs written. How closely did the team read the PRD and align themselves to it.


    Aligning OKRs with Organizational Goals


    OKRs of every team member is aligned with the organization's goal. For instance, an SMB focused SaaS startup wants to improve its average contract value (ACV). Currently, it is at $20K. The company wants to reach $40K in 5 quarters. Every department of the company will have OKRs aligned to the broader goal.


    Example: OKRs For Increasing ACV


    Product Team:

  • Objective: Build enterprise-grade features
  • Key Results:
  • - Ship SSO and advanced permissions by Q2

    - Increase feature adoption in enterprise tier by 40%

    - Reduce enterprise customer onboarding time by 30%


    Sales Team:

  • Objective: Target higher-value accounts
  • Key Results:
  • - Increase average deal size from $20K to $28K

    - Close 15 deals >$40K

    - Improve enterprise win rate from 15% to 25%


    Marketing Team:

  • Objective: Generate enterprise-qualified leads
  • Key Results:
  • - Generate 200 enterprise MQLs per quarter

    - Increase enterprise demo requests by 50%

    - Launch 3 enterprise-focused case studies


    Customer Success Team:

  • Objective: Drive expansion revenue
  • Key Results:
  • - Achieve 120% net revenue retention

    - Upsell 30% of existing customers to higher tiers

    - Reduce enterprise churn to <5%


    The Bottom Line


    Clear, measurable OKRs aligned with company goals create accountability, enable course correction, and ensure everyone is rowing in the same direction. Without them, teams operate in silos and individuals feel lost.


    Define your OKRs. Track your input metrics. Align with organizational goals. That's how you win.

    Thanks for reading! If you found this helpful, feel free to connect with me.

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