What are Key Outcome Indicators, and what are best practices, tools and online templates for teams and organizations?
Definition of Key Outcome Indicators
Key Outcome Indicators help measure the overall performance and success of an organization. Many companies use Key Outcome Indicators across departments to measure the success of specific groups and the organization as a whole. In addition, Key Outcome Indicators are a helpful tool in decision-making since they create visibility into the measurable success factors of an organization. They can also be used to understand where a team, department or organization stands with respect to the implementation of its strategies, goals and projects.
Description of Key Outcome Indicators
Key Outcome Indicators show clear indications of how an organization is doing as measured by quantifiable metrics. Outcome indicators allow managers and leaders to view the current results of the organization and take action that will cultivate change and improve performance.
The following guidelines can be used to develop Key Outcome Indicators:
- The first step in creating Key Outcome Indicators is to define your business strategy. By collecting feedback from all functions within an organization, one can start to understand the different and ideally complementary goals that exist, and then determine what to measure to quantify these goals.
- Depending on the specific strategies and goals, it can be important to identify the different time frames for each, to determine whether some outcome should be looked at in the short term (daily, weekly, monthly) or some should be tracked over the long term (quarterly, bi-annually, annually).
- Define specific Key Outcome Indicators by considering:
- The desired outcome
- The process by which to measure progress
- Ways to influence the outcome
- When to check in and review the progress leading up to the desired outcome
- Ensure the Key Outcome Indicators include both Leading Indicators and also Lagging Indicators in order to create a holistic picture of overall organizational performance
- Lagging indicators help measure past performance as an measure of what’s working, current capabilities that could be leveraged, and historic results.
- Leading indicators provide information that offer insight into future performance and potential actions.
Key Outcome Indicators can be used in various departments such as sales, finance, customer service, operations and marketing to measure the performance of a specific plan. For example, in sales, Key Outcome Indicators would measure the number of new contracts signed or the net sales-percentage growth. In finance, they would measure growth in revenue and net profit margin. Regardless of department, Key Outcome Indicators provide measurements to determine the current state, and then what is needed to reach desired results.
Implementing Key Outcome Indicators in an organization creates a structure of accountability and expectations that data should guide insights and decisions.
Tools & Templates
Key Outcome Indicators are implemented by using a common template to capture and report data, often in the form of spreadsheets, an online dashboard or other software platform.
upBOARD's Online Key Outcome Indicators Tools & Templates
Unlike most traditional Key Outcome Indicators processes, upBOARD’s online Key Outcome Indicators tools allow any team or organization to instantly begin working with our web templates and input forms. Our digital platform goes far beyond other software tools by including progress dashboards, data integration from existing documents or other SaaS software, elegant intuitive designs, and full access on any desktop or mobile device.
Learn more about upBOARD’s portfolio of other business strategy best practice tools and templates, including:
2 X 2 Matrix, ADL Matrix, Affinity Diagrams, Baker’s 4 Strategies of Influence, Balanced Scorecard, Benchmarking, Blue Ocean Strategy, Bowman Strategy Clock, Build-Measure-Learn Feedback Loop, Business Model Canvas, CAGE Distance Framework, Competitive Analysis, Competitive Landscape Analysis, Contingency Planning, Core Competence Analysis, Critical Success Factors, Discovery Driven Planning, Economic Value Added, First Mover Advantage, Five Forces Model, Force Field Analysis, Gap Analysis, GE McKinsey 9-Box Matrix, Go To Market Strategy, Hambrick & Frederickson’s Strategy Diamond, Hedgehog Model, Hook Model of Behavioral Design, Hoshin Planning System, Kay’s Distinctive Capabilities Framework, Key Outcome Indicators, Kotler’s Five Product Levels Model, Kotler’s Pricing Strategies, Lafley & Martin’s Five Step Strategy Model, McKinsey 7S Model, McKinsey’s Seven Degrees of Freedom for Growth, Mergers & Acquisitions, Mission Statements, Mullin’s Seven Domains Model, OGSM Framework, Ohmae’s 3-C’s Model, Partner Relationship Management, PEST Analysis, PESTLE Analysis, Porter’s Diamond, Portfolio Management, Purpose Statements, Pyramid of Purpose, Scenario Planning, Simonson & Rosen’s Influence Mix, SMART Performance Metrics, SMARTER Goals, SOAR, Strategic Goals, Strategy Map, Strategy Roadmap, Strategy Uncertainty Map, SWOT Analysis, TOWS Matrix, Triple Bottom Line, USP Analysis, Value Chain Analysis, Value Disciplines Model, Value Net Model, Values Statement, Vision Statements, VRIO Analysis, and Weisbord’s Six-Box Model.