3 Prompts to help Teams Go from KPIs to OKRs


3 Prompts to help Teams
Go from KPIs to OKRs

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HERBIG.CO

PUBLISHED

Jun 13, 2025

READING TIME

3 min & 56 sec

​Dear Reader,​

In theory, distinguishing KPIs from OKRs should be simple. KPIs are reactive metrics you monitor, but only act on when they exceed or drop below a certain threshold. Think revenue or conversion rate. Objectives and Key Results (OKRs) contain proactive metrics that help you measure your progress towards strategic priorities. Consider revenue from a particular product or the conversion rate at a specific funnel step.

However, even with that simple definition in place, it can be challenging for teams to establish proactive metrics when drafting their OKRs. But instead of dwelling on the "correct" starting point, I recommend meeting teams where they are and helping them turn existing metrics into OKRs through simple prompts that challenge their strategic thinking.

Approach #1: Zoom in on meaningful segments or sub-behaviors

Ask: “Where can we narrow our focus to a specific group, step, or behavior that impacts this KPI?”

Instead of tackling the whole KPI, zero in on a cohort, stage, or feature that might offer high leverage (e.g., new vs. returning users, drop-offs by category, specific traffic sources).

For Revenue:

  • What's a user segment that has a lot of potential to unlock more revenue?
  • Do we believe there's potential for more revenue in App vs. Web or New vs. Returning Users?
  • Which user actions most often precede a purchase, and can we increase those?

Approach #2: Link quantitative movement to qualitative intent

Ask: “What kind of change in user behavior or experience would explain a shift in this KPI?”

Move from abstract metrics (traffic, revenue) to user-driven causes (search intent, upsells, bounce behavior) that can be influenced through product or design interventions.

For Traffic:

  • Do we want to grow traffic from a specific source?
  • Is there a page or feature where improved traffic could have the biggest downstream impact?
  • What percentage of traffic is returning vs. new, and which one should we grow?

Approach #3: Translate the why behind the KPI into a testable how

Ask: “What’s the most promising bet we could make to influence this KPI right now?”

Turn passive monitoring into active experimentation. Identify specific opportunities to shift the needle through targeted campaigns, UX changes, or re-engagement strategies.

For any of your ideas:

  • Which three metrics would tell you this idea has worked?
  • Is how we usually measure success truly linkable to this idea or surrounding factors?

You can use these in a facilitated setup or plug them into your favorite LLM, assuming you have provided enough strategic and data context beforehand. Let me know how these have worked for you.

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Thank you for Practicing Product,

Tim

PS: Atlantic Coffee brewing vibes from a short time off last week

Let's Meet in Munich!

At PendomoniumX Munich on July 8, I’ll be sharing a pragmatic guide to finally connect the dots between strategy, OKRs, and discovery—so your product teams worry less about correctness and focus on context and progress. Save 50% using my discount code TIMHERBIG50.

Content I found Practical This Week

The Metric Tree Trap

Yet all effect assessment methods inherit the Metric Tree’s core flaws: confounders, shifted mixes, delayed cohort effects, and false levers still lurk beneath the simple math. Metric Trees excel as a visual framework for team communication and high-level KPI links. When you add data to “explain” metric movements or prioritize levers, expect Still having a Lack of full Context, False precision, Hidden tradeoffs, Masked structural shifts.

What I’ve Learned from 15 Years of Doing OKRs

This is a lesson that surprises people: not everyone needs to set OKRs. Teams that own their destiny—like product teams building new initiatives—thrive with them. But service teams, maintenance crews, or individuals with little autonomy may struggle. OKRs are best when there’s room to stretch, take risks, and learn from experiments. If a team doesn’t have control over its own priorities, it shouldn’t be asked to commit to key results it can’t influence.

When is it ok to have an output as a key result?

I hesitated writing this blog post. I feel like it could be interpreted as “permission” to use outputs as your key results whenever you are confident in your product idea. Confidence is great. We should all present our ideas with confidence but it’s not the same as data nor explicit risk reduction efforts. In most cases there are way too many assumptions to focus on just one solution. Use outcomes as your key results in the majority of cases. If you do find yourself in a niche situation with few viable options, perhaps an output would make sense.

Who is Tim Herbig?

As a Product Management Coach, I guide Product Teams to measure the real progress of their evidence-informed decisions.

I focus on better practices to connect the dots of Product Strategy, Product OKRs, and Product Discovery.

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