Choosing the Right Metrics That Reflect True Progress

Too many teams fall into the trap of measuring activity instead of impact. I’ve seen teams track “number of meetings held” or “tasks completed” as key results—only to miss whether their work actually moved the needle. The truth is, OKR metrics aren’t just about numbers. They’re about what those numbers reveal about real progress toward strategic outcomes.

Over two decades of guiding startups and enterprises through objective frameworks, I’ve learned one thing: clarity in measurement is the difference between a goal that inspires and one that fades into noise. This chapter shows you how to select metrics that aren’t just trackable, but meaningful—metrics that connect daily work to business impact.

Here, you’ll learn how to distinguish leading from lagging indicators, avoid vanity metrics, and combine quantitative data with qualitative insights to build a balanced, trustworthy view of performance. You’ll also get practical methods for setting up your OKR dashboard metrics and interpreting them to drive decisions—not just reports.

Understanding the Difference Between Leading and Lagging Indicators

Not all metrics are created equal. Some reflect what has already happened—lagging indicators. Others predict future outcomes—leading indicators. Confusing the two leads to misaligned effort and false confidence.

Lagging indicators answer: “Did we achieve the result?” They’re typically tied to outcomes like revenue, customer acquisition, or profit margins. These are useful for evaluation but not for adjusting course.

Leading indicators answer: “Are we on track to achieve it?” These are often behavioral or process-based—such as “number of qualified leads generated per week” or “conversion rate in the sales funnel.” They’re predictive and actionable.

For example, if your objective is to “increase customer retention by 15%,” a lagging metric is “retention rate at quarter-end.” A leading indicator is “percentage of customers completing onboarding within 48 hours.” The latter lets you intervene early if engagement drops.

How to Use Both Types Together

Use leading indicators to monitor progress and identify risks. Use lagging indicators to evaluate final outcomes.

Here’s a practical framework:

1. Define the outcome — What does success look like?
2. Identify the lagging indicator — What final result will prove it?
3. Choose 2–3 leading indicators — What actions or behaviors will lead to that result?
4. Set thresholds — What level of leading metric means you’re on track?

This approach keeps you focused on what you can control, not just what you can report.

How to Measure Key Results: A Practitioner’s Checklist

When setting key results, ask: “Is this metric meaningful, measurable, and tied to business impact?” If not, it’s not a valid OKR performance indicator.

Here’s a checklist I use with teams to evaluate OKR dashboard metrics:

• Is the metric directly linked to the objective? If not, it’s a distraction.
• Is it measurable in real time? Avoid proxies or estimates.
• Does it reflect an outcome, not an output? Output is activity (“we created 10 blog posts”). Outcome is impact (“we drove 2,000 new leads from content”).
• Is it actionable? Can the team influence it through deliberate work?
• Is it unique and not redundant? Avoid multiple metrics that measure the same thing.

Apply this checklist to every key result. If a metric fails more than one criterion, revise it—or remove it.

Combining Quantitative and Qualitative OKR Metrics

Numbers tell you what happened. Qualitative data tells you why. Relying solely on quantitative metrics risks missing context—and can lead to misinterpretation.

For example, a drop in conversion rate might signal poor performance. But paired with user feedback (“the checkout form is confusing”) or support ticket volume (“127 complaints about the payment process”), the insight changes: it’s not a failure of effort—it’s a design flaw.

Always pair quantitative data with qualitative input. Examples:

• Revenue growth (quantitative) + customer satisfaction scores (qualitative)
• Website traffic (quantitative) + bounce rate trends + user feedback (qualitative)
• Task completion rate (quantitative) + team sentiment survey (qualitative)

Use qualitative data to validate, explain, and guide. It turns metrics from static reports into dynamic signals of team health and strategy alignment.

Common Pitfalls in OKR Metrics and How to Avoid Them

I’ve reviewed hundreds of key results. The most frequent errors? Confusing outputs with outcomes, chasing vanity metrics, and choosing metrics that are hard to track.

Pitfall	Why It Fails	How to Fix
Measuring “number of emails sent”	Activity ≠ impact. No connection to engagement or conversion.	Measure “open rate” or “click-through rate” instead.
Using “increase customer satisfaction by 10%” without defining the survey	Subjective and unverifiable without context.	Specify: “Increase NPS from 65 to 75 via quarterly survey.”
Focusing only on revenue growth	Overlooks customer retention, churn, and LTV.	Add leading indicators: “reduce churn by 5% by improving onboarding.”

These aren’t just examples—they’re real mistakes I’ve seen teams make. The fix is always the same: tie every metric to a clear business impact and ensure it’s grounded in data you can verify.

Designing Your OKR Dashboard: What to Track and How Often

Your OKR dashboard is your operating system for performance. It should be simple, visual, and updated regularly. But what goes on it?

Best practice: Limit your dashboard to 3–5 key metrics per objective. Use color coding:

• Green – On track
• Amber – At risk
• Red – Off track

Update your OKR dashboard metrics weekly during check-ins. Review monthly during leadership reviews.

For teams using tools like Asana, Monday, or Notion, I recommend:

1. Use a shared dashboard visible to the whole team.
2. Include only the most critical metrics per objective.
3. Embed a brief rationale: “Why this metric matters.”
4. Link to source data or reports.

This turns your dashboard from a tracking tool into a decision engine.

Frequently Asked Questions

How do I measure key results when the outcome is subjective?

Even for subjective outcomes, you can quantify them through surveys, ratings, or feedback loops. For example, if the objective is “improve team morale,” use a quarterly engagement survey with a score from 1–5. Track the trend over time. Measure the percentage of team members rating morale as “high” or “very high.”

Are leading indicators more important than lagging indicators?

They serve different roles. Leading indicators are essential for course correction. Lagging indicators are essential for validation. Use both: leading to act, lagging to assess.

Can I use multiple metrics for one key result?

Yes—but only if they’re interconnected and reflect different dimensions of progress. Avoid redundancy. For example, “increase user retention” could be measured via 30-day retention rate and time spent per session. Both are leading indicators that support the same outcome.

What if my team’s key results rely on data I can’t access?

Don’t force it. Instead, collaborate with analytics or IT to build access. Or, use proxy metrics that are within reach and still meaningful. For example, if you can’t track revenue, use pipeline value or deal velocity as leading indicators.

How often should I review OKR dashboard metrics?

Weekly check-ins for progress tracking. Monthly reviews for strategic decisions. Quarterly evaluations to assess final achievement. This rhythm avoids both micromanagement and surprise outcomes.

Can qualitative feedback replace quantitative metrics in OKRs?

No. Qualitative data should complement, not replace, quantitative measurement. Use it to explain trends, uncover root causes, and validate data. But always pair it with a measurable metric to ensure accountability.