What is an OKR? (Objectives and Key Results)
OKR (Objectives and Key Results) is a goal-setting framework that pairs a qualitative Objective with 3 to 5 quantitative Key Results. Originally developed at Intel and popularized by Google, OKRs align teams around ambitious outcomes rather than activities and are typically set quarterly.
In more detail
An Objective answers: what do we want to achieve? It should be inspirational and time-bound. Key Results answer: how will we know we got there? They must be measurable and ideally outcome-focused. Google famously aims for 70% achievement as a sign the targets were stretchy enough.
OKRs differ from KPIs. KPIs monitor ongoing health. OKRs drive change. A team might have a KPI dashboard for steady-state metrics and a separate quarterly OKR for strategic initiatives. Many scaling companies use OKRs at company, team, and individual level.
How it works
- Start with a short, qualitative objective.
- Add 3 to 5 measurable key results.
- Set a quarterly time horizon.
- Publish OKRs company-wide for transparency.
- Check in weekly, grade at quarter end.
- Separate performance review from OKR grading.
Related terms
Mini FAQ
Objective: Become the leading HR tool for SMBs. KR1: Grow MRR from $500K to $750K. KR2: Increase NPS from 32 to 45. KR3: Hit 1,000 active customers.
Stretch OKRs expect 60-70% achievement. Hitting 100% suggests the target was too safe. Commit OKRs (must hit) are a separate category.
Most OKR practitioners decouple OKRs from compensation to encourage ambitious targets without gaming.