Metrics That Matter: From KPIs to OKRs

A Lean Approach to Enterprise Metrics

Quick Summary

The reality is that many executives don’t fully trust their organization’s data. Think about that. Despite having access to endless dashboards, reports, and analytics, leaders often feel uncertain about the metrics intended to guide them. The problem isn’t a lack of information; it’s a lack of clarity and actionable insights.

Metrics are everywhere, but they’re often misunderstood or misused. To truly unlock their potential, we need to stop drowning in numbers and start focusing on meaning. That means evolving our approach, moving beyond traditional Key Performance Indicators (KPIs) toward Objective and Key Results (OKRs) that align metrics with strategy, empower teams, and drive tangible business outcomes.

Whether you’re a seasoned leader or exploring Lean Six Sigma principles for the first time, here’s how to evolve organizational metrics into tools that transform culture, decision-making, and results.

The Metrics Maturity Curve

Not all metrics are created equal. That’s where many organizations falter; they treat all data the same. It’s essential to understand the evolution from simple measurement to strategic alignment. Here’s how metrics typically mature in an organization:

1. Lagging Indicators: These are the foundational metrics most businesses start with—revenue, churn rate, and net promoter score (NPS). They’re valuable but reactive. They tell you what happened after the fact; they don’t explain why or how to improve.

2. Leading Indicators: The next stage involves predictive metrics like cycle time, conversion rates, or engagement scores. These provide actionable insights but are often trapped in silos, owned by individual departments rather than aligned to the broader business.

3. Strategic Levers: Compelling metrics are those that act as levers for change when they link directly to organization-wide goals. These metrics are no longer just measured by executives; they’re owned by teams and actively influence decision-making at every level.

Velocity Client Success Story: A Metrics Evolution in Action

Many organizations stumble by treating all metrics as equal, tracking what’s convenient rather than what’s critical. In contrast, this growth-focused organization recognized the limitations of lagging indicators like total revenue and customer count. By shifting to leading indicators—such as engagement activity, campaign responsiveness, and lifecycle progression—they aligned measurement with strategic intent.

Integrating their CRM with their broader data ecosystem created a unified pipeline that enabled identity resolution, minimized communication conflicts, and enhanced execution precision—the outcome: increased recurring revenue and a measurable drop in churn.

This shift—from passive reporting to predictive insight—illustrates how organizations can evolve from simply measuring the past to actively shaping the future. Metrics don’t transform on their own; they require deliberate intention, strategic alignment, and consistent action to become truly transformational.

Beyond KPIs: The Lean Approach to Measuring Impact

Traditional KPIs often measure activity, not impact. For instance, tracking the number of customer service calls taken per hour doesn’t necessarily reflect how well customers’ issues were resolved. Lean Six Sigma metrics, when reframed strategically, help bridge this gap by transforming operational data into organization-wide insights. Here’s how:

• Cycle Time: Traditionally used in manufacturing or IT, cycle time can evolve into a key business driver by measuring speed to value. How quickly can your teams deliver meaningful outcomes to customers?

• Defect Rate: Rather than just a quality control metric, defect rate becomes a proxy for customer trust. How often are you failing to meet expectations?

• First-Pass Yield: This figure tells more than efficiency—it’s an indicator of team capability. Are you designing systems and processes that succeed the first time?

Aligning these Lean Six Sigma metrics to strategic business goals amplifies their value. Instead of reporting activity, they inform cultural transformation by focusing on what matters most to success.

Breaking Down Barriers: Empower Teams With Data Ownership

Metrics often get weaponized in organizations. They’re treated as tools for judgment—leaders use them to ask, Why isn’t this number better?, which breeds defensiveness and fear. To drive change, we need to shift the focus from reporting up to empowering out.

OKRs are a game-changer because they focus not just on what is being measured but on why. They foster alignment across teams by:

• Tying metrics to purpose so that every individual understands how their work contributes to the bigger picture.

• Encouraging experimentation by giving teams ownership of their goals.

• Driving learning by treating metrics as tools for growth, not tools for punishment.

The Leader’s Role in a Metrics Culture

Metrics exist to guide decision-making, not to control it. Modern leaders must make a conscious effort to use them as tools for learning and collaboration rather than just performance measurement. This requires three key behaviors:

• Curate the Right Metrics: Avoid falling into the trap of tracking everything. Ask, Does this measure align with strategic goals, provide actionable insights, and drive progress?

• Foster Transparency: Share metrics openly across teams. When data is visible and free from manipulation, it fosters trust and encourages collaboration.

• Model Curiosity Over Certainty: Instead of asking, Why didn’t we meet the target? Ask, What can we learn from this trend?

Transparency transforms metrics into shared tools that spark problem-solving and innovation.

A Framework to Transform Metrics

Here’s a simple approach you can use to turn your data into actionable insights:

1. Align Metrics to Strategy: Start at the top. What outcomes matter most to your organization this quarter or year? Identify process metrics that directly influence these results.

2. Translate KPIs Into OKRs: Take legacy KPIs like churn rate or engagement and align them to strategic objectives. Example OKR format:

   1. Objective: Increase customer retention.

   2. Key Result 1: Reduce churn rate by 15%.

   3. Key Result 2: Launch a seamless onboarding process.

3. Empower Teams With Data: Enable real-time access to relevant metrics and train teams to interpret trends. Provide space to try new approaches and experiment without fear of failure.

4. Review and Adjust Frequently: OKRs are not static. Make retrospectives a regular habit to refine metrics and adjust goals based on what’s working.

5. Celebrate Learning Over Perfection: Emphasize progress and insights, rather than just achieving targets. Reward curiosity and learning from data.

Metrics That Matter. And Move Us Forward.

Metrics are more than numbers; they’re the backbone of your organization’s story, reflecting what you value and how you grow. The shift from KPIs to OKRs, strengthened by a Lean Six Sigma framework, empowers teams to act on real insights and align their efforts with organizational goals.

Are you ready to move from activity to impact? Start by asking yourself one critical question the next time you review your numbers: What story are your metrics telling? Then lean into that story to drive targeted, meaningful change.