Input, Output, Outcome
Input, Output, and Outcome are three measurement levels in goal-setting frameworks. While Inputs measure effort and Outputs measure the results of activities, Outcomes capture the actual impact on customers or business – and that is exactly where Key Results should aim.
What Do Input, Output, and Outcome Mean?
The distinction between Input, Output, and Outcome is fundamental to working with OKRs. It describes three levels of measurement, each providing a different perspective on progress:
- Input: What we invest (time, money, resources)
- Output: What we produce (deliverables, activities)
- Outcome: What impact results (changes for customers or the business)
The Three Levels in Detail
| Level | Description | Example | Control |
|---|---|---|---|
| Input | Invested effort | 200 hours of development | Fully controllable |
| Output | Produced result | 5 new features released | Largely controllable |
| Outcome | Achieved impact | User retention increased by 15% | Only influenceable |
Why Outcome-Based Key Results?
The most common mistake in OKR formulation is writing Key Results as outputs instead of outcomes:
- Output (poor): "Publish 10 blog posts" – That’s an initiative, not a Key Result
- Outcome (good): "Increase organic traffic by 40%" – That measures actual impact
Outputs are hypotheses: We BELIEVE that 10 blog posts will increase traffic. The output does not guarantee the outcome.
The Input-Output-Outcome Model in the OKR Framework
In the OKR context, the three levels correspond to different components:
- Inputs > Resource and budget planning
- Outputs > Initiatives (concrete projects and measures)
- Outcomes > Key Results (measurable impact)
When Output-Based Key Results Are Acceptable
In certain situations, output-based Key Results are legitimate:
- New teams: Still exploring the connection between outputs and outcomes
- Foundational work: When infrastructure needs to be built first
- Compliance: When certain activities are required by regulation
Even then, teams should work toward outcome-based Key Results over time.
Outcome Orientation with Northly
Northly helps teams formulate outcome-based Key Results by providing hints during OKR creation when a Key Result reads more like an output. This way, teams gradually learn to focus on the impact level.
Related Terms
Key Result
A Key Result is a quantitative, measurable outcome that indicates progress toward an Objective. Each Key Result has a clear metric, a starting value, and a target value, answering the question: "How do we know we're on the right track?"
Initiative
An Initiative is a specific project, task, or action that a team undertakes to drive progress on a Key Result. Initiatives bridge the gap between measurable goals and daily work, answering: "What will we concretely DO to move the numbers?"
KPI (Key Performance Indicator)
A KPI (Key Performance Indicator) is an ongoing metric that monitors the health and performance of a business process. Unlike OKRs, KPIs measure the status quo and keep running operations in view, rather than driving targeted change.
Frequently Asked Questions
What is the difference between output and outcome?
An output is the direct result of an activity (e.g., "10 blog posts published"). An outcome is the impact of that output (e.g., "Organic traffic increased by 40%"). Outputs are controllable, outcomes are only influenceable. Key Results should measure outcomes.
Why should Key Results be outcomes and not outputs?
Because outputs don’t guarantee impact. You can publish 10 blog posts and still see no traffic growth if the content isn’t relevant. Outcome-based Key Results force teams to think about actual impact rather than just activities.
What are inputs in the OKR context?
Inputs are the resources invested: time, budget, personnel, technology. In the OKR framework, inputs are rarely used as Key Results since they only measure effort, not results. Inputs flow into resource planning instead.
How do I formulate an outcome-based Key Result?
Ask yourself: "What change do we want to see for our users or in the business?" Instead of "Release 5 features" (output), formulate "Increase user satisfaction (NPS) from 30 to 50" (outcome). The key: What changes for the customer?