Whether you archive or not depends on the Key Result or Initiative.
When to archive a Key Result
Archived Key Results are those Key Results that are no longer necessary due to restrictions (time or scope) or they were not the best measurement of success. Therefore, it makes sense that they are not counted towards progress, as they are not actively worked on and are no longer deemed a good way to validate your Objective. When you archive a Key Result, you fill in a template to record your learnings.
On the other hand, when you've achieved or partly achieved a Key Result, it makes sense to keep it open because it counts towards progress and validates your Objective. It is also valuable not to archive it as it provides important context for future reference.
When to archive an Initiative
Archiving an Initiative
Initiatives are hypotheses of what you think will make an impact on the Key Results, so they are naturally going to be dynamic as you work on them and learn.
Archived Initiatives are those Initiatives that you're no longer pursuing due to restrictions (time, budget, approval, etc) or they no longer make sense. Therefore, it makes sense that you're no longer being asked to update them and they're removed from the OKR. When you archive an Initiative, you fill in a template to record your learnings.
Archiving vs. Editing an Initiative
Sometimes it makes sense to modify an Initiative instead of archive it. This depends on the nature and scope of the modification, as well as if the Initiative was started. If it's a minor edit, then it's ok to modify the name of the existing Initiative if it hasn't been started. If the edit changes the nature of the Initiative, then it's best to archive it to record why you're not pursuing it anymore and create a new one.
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