Getting Started with Outcome Thinking

One of the biggest challenges people face when adopting OKRs (Objectives and Key Results) is shifting from output thinking to outcome thinking. You’ve probably seen posts on LinkedIn saying “Outcome > Outputs.” But what does that really mean?

Simply put, outputs are the things you make — like launching a new feature or completing a project — while outcomes are the measurable changes those outputs create, such as increased user engagement or higher revenue. Outcomes are where the real value lies for a business.

Outcome thinking encourages you to focus on why you’re doing something rather than just what you’re doing. It’s about turning vague ambitions into clear, measurable goals. For anyone working with OKRs, mastering this mindset helps ensure you’re not just busy but making progress toward meaningful results.

Building the Outcome Thinking Muscle

A practical way to develop outcome thinking is to re-examine your current big initiatives. Start by asking three simple but essential questions:

• Why are we doing this?
• How will the world change because of this?
• How will we measure success?

By applying these questions to ongoing projects, you can align your efforts with value-driven outcomes. Below is a step-by-step approach to help you get started.

Step 1: Identify Your Big Initiatives

Before diving into outcome thinking, make a list of the significant projects or initiatives on your plate. These are efforts that consume time, resources, and attention. Examples might include launching a new product, revamping a website, or expanding into a new market.

Example Initiatives:

• Initiative A: Revamp the company website.
• Initiative B: Launch a customer loyalty program.
• Initiative C: Expand sales into the European market.

Step 2: Ask the Right Questions

For each initiative, ask yourself:

• Why are we doing this? Objective
• How will the world change because of this? (Even if it’s just our tiny corner of the world) Metric to measure
• How will we measure success? Key Result

These questions help you shift from focusing on tasks and milestones to thinking about end results. It’s easy to get lost in meetings, to-do lists, and deadlines, but without a clear outcome in mind, you risk putting effort into work that doesn’t contribute to your goals.

Example Answers:

Initiative A: What will we get out of the website revamp?

• A more user-friendly site that boosts customer engagement and lowers bounce rates.

Initiative B: What will we get from launching the loyalty program?

• Increased customer retention and higher spending per customer.

Initiative C: What will we get from expanding into Europe?

• A 20% increase in revenue by reaching new customer segments.

Step 3: Define Success Metrics

Once you’ve clarified the expected outcomes, it’s time to define how you’ll measure success. This is where OKRs come into play. The Objective captures the desired outcome, and Key Results measure whether you’re achieving it.

Example OKRs:

Initiative A: Revamp the Company Website
Objective: Improve user experience.
Key Results:

• Reduce bounce rate by 25%.
• Increase session duration by 15%.
• Boost conversion rates from the homepage by 10%.

Initiative B: Launch a Customer Loyalty Program
Objective: Increase customer retention.
Key Results:

• Achieve a 20% increase in repeat purchases within six months.
• Increase customer lifetime value by 10%.
• Enroll 30% of customers in the program within the first quarter.

Initiative C: Expand Sales into the European Market
Objective: Drive revenue through European expansion.
Key Results:

• Generate €2 million in new sales within a year.
• Partner with 10 local distributors.
• Achieve a 90% customer satisfaction score.

Step 4: Align Initiatives with OKRs

Once you’ve defined outcomes and metrics, align these initiatives with broader company OKRs to ensure your efforts contribute to strategic goals. If an initiative doesn’t clearly support a key objective, you may need to rethink its priority or adjust its scope.

Example Alignment:

If your company’s objective is to “Increase market share by 15%”, expanding into Europe aligns perfectly. New sales and distributor partnerships are clear key results that demonstrate progress toward that goal. On the other hand, if the website revamp doesn’t connect to a strategic priority — like customer engagement or brand perception — you may need to adjust the initiative to ensure it adds meaningful value.

Step 5: Monitor Progress and Adjust as Needed

Outcome thinking requires continuous practice. As you implement initiatives, regularly review progress against your key results. If you’re not seeing the outcomes you expected, it’s time to course-correct. This might involve tweaking your strategy, reallocating resources, or pivoting entirely.

Example Adjustment:

Imagine that after three months, your loyalty program isn’t driving repeat purchases as planned. Upon investigation, you discover that customers find the rewards system confusing. With this insight, you might simplify the program to increase participation.

Conclusion: Practice Outcome Thinking Daily

Practicing outcome thinking consistently will sharpen your ability to set actionable goals and align your work with strategic priorities. This approach ensures every effort you make is measurable and meaningful, driving real progress for the business.

The next time you’re in the middle of a major project, pause and ask:

• Why are we doing this? Objective
• How will the world change because of this? (Even if it’s just our tiny corner of the world) Metric to measure
• How will we measure success? Key Result

These questions can transform the way you approach your work, making it more purposeful, focused, and impactful. With outcome thinking, you’re not just busy — you’re moving the needle in ways that matter most.