Having used the OKRs framework for over two years, I find them very effective. I use them not only when planning in partnerships, but also in my personal life.
However, planning with OKRs isn't easy, especially if they are introduced chaotically without proper training. So, in this article I am sharing my experience to help those who use OKRs in their companies but still struggle with them. I will explore 5 pitfalls you may find yourself in and how to avoid them.
Disclaimer: This article is for those who already have some experience with OKRs, as it doesn’t describe in detail how to set objectives and key results. Each company interprets OKRs differently, so this article is based on my own experience, which might differ from how you do OKRs in your company.
When setting OKRs for managing partnerships, it’s important to understand the difference between inputs, outputs, and outcomes. Many people confuse these terms, but understanding them is crucial for success.
Inputs are the actions or steps you take to achieve results (e.g., creating training materials or organizing training sessions).
Outputs are the measurable activities that come from these actions (e.g., holding 10 training sessions or signing 5 new partners).
Outcomes are the final results you want to achieve (e.g., a 20% increase in partner-driven revenue or better partner satisfaction).
Compare Two Objectives:
Objective 1: Improve partner onboarding and training to drive faster adoption.
Key Result 1 (Input): Create 5 detailed training modules on product features and sales strategies.
Key Result 2 (Output): Conduct 10 training sessions for new partners over the next quarter.
Key Result 3 (Outcome): Achieve a 25% increase in partner adoption rates.
Objective 2: Improve partner engagement and collaboration to boost long-term revenue.
Key Result 1: Develop and launch a partner portal with marketing materials and resources (input), leading to a 15% increase in partner engagement (output) and a 10% rise in partner-driven sales (outcome).
Key Result 2: Host 5 joint sales calls per month with key partners (input), resulting in a 25% increase in joint sales opportunities (output) and a 20% growth in pipeline value (outcome).
Key Result 3: Increase revenue (outcome) from co-selling activities (output) by 20%, driven by the support provided through the partner portal and joint sales calls (input).
Why is Objective 2 better?
While Objective 1 shows clear inputs and outputs, it doesn't connect directly to bigger goals like revenue or partner engagement. On the other hand, Objective 2 clearly links inputs, outputs, and outcomes, making it more strategic and aligned with the overall business goals. This helps achieve more impactful results.
Use OKR templates that clearly label inputs, outputs, and outcomes.
Work closely with your team to make sure there is a clear connection between actions and results.
Ask yourself: What final result do I want to achieve? What actions do I need to take to reach this result? How will I measure progress along the way?
Regularly review your OKRs to make sure all three parts—inputs, outputs, and outcomes—are included.
Try creating your own OKRs using this structure. Start with one objective and ensure each key result includes inputs, outputs, and outcomes. Compare the results to check if they align with your main goals.
A common mistake is to get too focused on activities and outputs (e.g., the number of meetings, training sessions, or partner sign-ups) without thinking about whether these outputs actually lead to the desired outcomes. Outputs can show progress, but if they do not connect to the strategic goals of the partnership, they may not help achieve what truly matters.
Example OKR:
Objective: Drive long-term revenue by improving partner engagement.
Key Result 1: Develop and share 10 co-marketing materials for partners (input), leading to a 30% increase in partner use of marketing content and a 15% rise in co-branded campaigns (output).
Key Result 2: Hold 20 joint meetings with strategic partners (input), leading to 5 new partnership agreements and a 10% increase in joint pipeline opportunities (output).
Key Result 3: Achieve a 25% increase in revenue from partner-led sales (outcome), driven by the co-marketing materials and joint meetings (inputs).
In this case, while the outputs (e.g., co-marketing materials and meetings) are important, the actual goal is the increase in revenue. If you only focus on outputs without looking at their impact, you may end up with many activities that don't help the partnership succeed in the long term.
Start with the Outcome in Mind
Align Outputs with Outcomes
Prioritize Quality Over Quantity
Use Metrics That Link Outputs to Outcomes
Regularly Review Progress
By paying attention to outcomes, you'll ensure that you keep the bigger picture in mind and align your efforts with the company's key goals and priorities.
Reflect on your current OKRs—are your outputs directly tied to strategic outcomes? Review your activities and ask yourself how they contribute to long-term success. Make sure you are focusing on the right results, not just the numbers.
A common mistake is not paying enough attention to inputs—the actions and resources needed to make things work. Outputs and outcomes are important, but the steps you take to set up and manage your partnerships (inputs) are just as important. Without good inputs, the outputs and outcomes may not happen or last.
Example OKR:
Objective: Ensure new partners get onboarded and start using the products quickly. Key Result 1: Ensure 100% completion of onboarding programs by all new partners (output). Key Result 2: Increase partner product knowledge by 30% and product usage by 20% after training sessions (output and outcome). Key Result 3: Increase partner revenue by 15% in the next quarter (outcome).
In this example, the input —creating high-quality training materials—is missing, while it is very important. Without good training, the sessions (outputs) and results (outcomes) won’t be successful.
Focus on Strong Foundations
Invest Time and Effort
Focus on Quality, Not Just Quantity
Make Sure Inputs Lead to Outcomes
Keep Improving Inputs
By focusing on the right inputs, you build a stronger foundation for success. Without enough attention to inputs, your efforts may not lead to the outcomes you want.
Take a step back and assess the inputs needed for your partnerships to succeed. Are you investing enough in the resources, training, and actions that will drive sustainable results? Start by identifying and prioritizing the key inputs for your next project or initiative.
A big challenge when managing partnerships with OKRs is making sure you have the right tools to measure both outputs and outcomes. Without good measurement systems, it's difficult to know if your actions are achieving the desired results. It's crucial to use tools that can track both short-term activities (outputs) and long-term results (outcomes) accurately.
Ensure Access to Data: Use CRM systems, analytics tools, or partner portals to keep track of partner performance.
Set Up Tracking Mechanisms: Use tools like Salesforce or partner management software to monitor outputs (e.g., meetings, activities) and outcomes (e.g., revenue, satisfaction).
Review Regularly: Set up monthly or quarterly reviews to measure both outputs and outcomes.
Check if you have the right tools in place to track your partner activities and their results. If not, consider implementing or improving tracking systems like a CRM or partner portal. Regularly review the data to ensure you're on track to achieve your goals.
Commit only to those outputs and outcomes that you can track. Before setting your OKRs, think through in advance which metrics will be measurable and avoid committing to those that are difficult or impossible to track. This will help you stay focused on what truly matters and ensure you can evaluate progress effectively.
When setting OKRs, it’s important to have a clear and realistic understanding of your influence on both outputs and outcomes. Underestimating your impact can lead to setting goals that are too easy, while overestimating it can result in setting goals that are too difficult to achieve. As a partner manager, it's crucial to recognize that some factors are beyond your control.
Example OKR:
Objective: Increase partner-driven revenue through joint marketing and sales initiatives.
Key Result 1: Co-develop 3 high-impact marketing campaigns with top-tier partners, leading to 25% of partners increasing their marketing spend and engagement.
Key Result 2: Host 5 partner-led events with at least 300 participants, resulting in a 10% increase in partner-driven leads.
Key Result 3: Achieve a 20% increase in partner-driven revenue next quarter, influenced by the joint marketing and event initiatives.
In this example, the input is creating campaigns, the output is the number of events, and the outcome is the revenue increase. If you overestimate your control over the revenue outcome, you may set unrealistic expectations, ignoring external factors like partner readiness or market conditions. On the other hand, underestimating your influence on outputs might lead you to set goals that don't generate enough activity to reach your revenue targets.
Evaluate Your Influence: Be honest about what you can control and what depends on your partners or other external factors.
Set Realistic Goals: Make sure your OKRs reflect what is realistically achievable, taking into account both internal and external influences.
Collaborate with Partners: Work closely with your partners to ensure you are setting goals that are realistic and achievable together.
By understanding your true impact, you can set OKRs that are both challenging and realistic.
Before setting your OKRs, take some time to evaluate what you can control and what relies on external factors. This will help you set more realistic and achievable goals that align with your capabilities.
In conclusion, setting effective OKRs for managing partnerships requires understanding the three key components: outcomes, outputs, and inputs. By focusing on the bigger picture and making sure each step leads to long-term success, you can avoid common mistakes that can slow progress. Regularly measuring both outputs and outcomes will help you stay on track and make adjustments when needed. By setting realistic goals, using the right tools to track progress, and working closely with your partners, you can achieve your goals. Keep these points in mind, and your OKRs will help you reach success.