We discussed how the OKR completion score should look like below 100%.
But what about the score above 100%? Does it make sense for teams to complete the OKRs above the target line?
The answer is NO. There are two main reasons for it:
- Such OKRs are not ambitious enough, even for the roofshots.
- The OKRs above 100% rarely reflect the actual holistic progress of the team.
What do I mean about the holistic progress? According to the OKR methodology, each Key Result for the Objective should reflect how far the team progressed towards the goal. And none of the Key Results should be achieved at the expense of some other important metric for the company or product.
For example, if we set the Key Result for the marketing team to bring 10,000 new visitors, we should also put a Key Result about the acquisition cost of each user. And probably about the conversion rate of these visitors. So that the marketing focuses on the cost-efficient channels of new users. As well as on the relevant customers from our target audience (and not just some random folks from the internet).
Here would be our OKR example: Objective
: Bring new inbound leads to the website Key Results
- Increase the monthly visitors to the website from 10k to 20k
- Maintain the customer acquisition cost below $1
- Increase the visitor-to-trial conversion rate from 10% to 15%
In this example, if the marketing team decides to bring twice as many visitors and score that Key Result 200% at the expense of CAC - that doesn't mean that the team is doing great.
This is the holistic approach to OKRs. The weight of each Key Result should be roughly equal. And the great progress for one of them usually won't cover the lack of progress for another Key Result.