There’s a trap that many startups fall into:
→ focusing on outputs instead of outcomes.
If you're measuring success by the volume of work done or the number of tasks completed, you might be missing the bigger picture.
In this article, we’ll explore the key differences between OKRs and outputs, why focusing on outputs can hinder your startup’s progress, and how shifting your focus to outcomes can help you drive better, more impactful results.
Why Do Startups Focus on Outputs?
Outputs are the activities or deliverables that your team completes and include things like number of tasks finished, the amount of code written, or features shipped.
While outputs can feel productive, they don’t necessarily equate to real business value or long-term success. It’s easy to assume that completing tasks is enough, but in reality, outputs don’t always help you move closer to achieving your startup’s ultimate goals.
Focusing on outputs alone means you may be busy but not necessarily productive.
You may be working hard, but if the activities aren’t aligned with your strategic objectives, they won’t directly impact the growth or success of your business. This is where OKRs come in.
OKRs: Focusing on Outcomes, Not Outputs
OKRs (Objectives and Key Results) are designed to help you focus on outcomes - the measurable results that directly contribute to your business’s success.
Unlike outputs, which focus on the activities you’ve completed, OKRs help you track the results that truly matter.
For example, instead of focusing on how many features you’ve shipped, an outcome-based OKR might be: “Increase customer retention by 15%.”
This objective is clearly aligned with the desired outcome, and the key results will track specific, measurable actions that contribute to achieving that outcome (e.g., improving onboarding processes or reducing churn).
By using OKRs, you focus your efforts on measurable outcomes that will drive growth, rather than getting bogged down in the day-to-day tasks.
This approach ensures that every effort and resource you put toward your OKRs is aligned with the bigger picture.
Up next: 7 Biggest OKR Myths (And Why You Should Ignore Them)
Why Focusing on Outputs Hurts Startups
While outputs might seem like a logical way to measure progress, they can actually hold your startup back. Here’s why:
- Misalignment with Business Goals: Focusing on outputs can lead you to prioritize the wrong tasks. You may be completing work, but if it’s not tied to your core business objectives, it won’t contribute to your growth.
- Lack of Strategic Focus: When your team is focused on outputs, it’s easy to get lost in the weeds and miss the larger strategic picture. You may be working hard, but not necessarily on the most important things that will move your business forward.
- Team Burnout: Focusing too much on tasks and deliverables can lead to burnout. Your team might feel like they’re constantly checking off boxes without seeing meaningful progress. This can lower morale and reduce overall productivity.
- Inefficient Use of Resources: If you’re focused on outputs, you might allocate resources to tasks that aren’t moving the needle. This could lead to wasted time, effort, and money spent on work that doesn’t help you achieve your ultimate business objectives.
Shifting to OKRs to Drive Faster Growth
The key to avoiding the output trap is shifting your focus to outcomes with OKRs. Here’s how focusing on OKRs can drive better results:
- Clarity and Focus: OKRs provide your team with a clear roadmap of what success looks like and how to get there. Instead of getting lost in countless tasks, your team will be aligned around measurable outcomes that contribute directly to your growth.
- Better Prioritization: With OKRs, you can prioritize the most important objectives for your startup. Your team will focus on the work that drives real impact, ensuring that resources are spent efficiently.
- Motivation and Ownership: When your team understands how their work contributes to the bigger picture, they’ll feel more connected to the company’s mission. This sense of ownership drives motivation and engagement, leading to higher performance and productivity.
- Data-Driven Decisions: OKRs allow you to measure progress with specific, quantifiable results. This enables you to make data-driven decisions and adjust your strategy as needed to stay on track toward achieving your business goals.
- Continuous Improvement: With OKRs, you’ll regularly assess performance and refine your approach based on real-time feedback. This ongoing process of learning and adaptation ensures that your team stays on course, even as your startup grows and evolves.
Recommend reading: 32 OKR Examples for Startups
Conclusion
If you're still focused on outputs as your primary measure of success, it’s time to shift your mindset. By focusing on OKRs, you can align your team around meaningful outcomes that will drive real growth for your startup.
OKRs help you prioritize the right work, make data-driven decisions, and ensure that everyone on your team is working toward the same vision.
Stop measuring productivity by the number of tasks completed, and start measuring it by the results that actually matter. With OKRs, you’ll be better equipped to scale, innovate, and achieve long-term success.
Ready to start focusing on outcomes with OKRs? Sign up for OKRs Tool today and start driving better results for your startup.
