ACV is the annualized version of all revenue generated from a contract, while ARR only takes the recurring revenue into account. Understanding the subtle differences between these metrics is crucial for making informed decisions at SaaS companies.
How SaaS companies recognize revenue and measure financial success is a tough art. Some frameworks and perspectives prove helpful. But the most important step is recognizing the difference between operational and financial metrics.
Failing to achieve intended results with OKRs could point to a fundamental team failure rather than a broken framework. By nature, OKRs are not intended to be magical solutions to team dysfunction.