OKRs—Objectives and Key Results—are a goal-setting framework that helps teams focus on what matters most. Originally developed at Intel by Andy Grove and later popularized by Google, OKRs have become the go-to methodology for ambitious teams who want to move fast without losing sight of their goals.
The OKR Definition
An OKR consists of two components that work together to create clarity and accountability:
The OKR Formula
Objective: What do we want to achieve? (Qualitative, inspirational)
Key Results: How do we know we achieved it? (Quantitative, measurable)
Think of it this way: the Objective is your destination—where you want to go. The Key Results are the milestones that prove you've arrived.
What Makes a Good Objective?
Objectives are qualitative and inspirational. They answer the question: "Where do we want to go?"
A well-crafted objective is:
- Ambitious — It stretches the team beyond business as usual
- Qualitative — It describes an outcome, not a metric
- Time-bound — Typically set for a quarter (3 months)
- Actionable — The team can actually influence it
- Inspiring — It motivates the team to put in extra effort
Examples of Good Objectives
Examples of Weak Objectives
What Makes Good Key Results?
Key Results are quantitative and measurable. They answer the question: "How do we know we got there?"
Effective key results are:
- Specific — Clear and unambiguous
- Measurable — You can track progress with a number
- Achievable — Challenging but possible (aim for 70% completion)
- Relevant — Directly tied to the objective
- Outcome-focused — Measure results, not activities
Outcomes vs. Outputs
Key Results should measure outcomes (the change you created), not outputs (the work you did). "Ship 10 features" is an output. "Increase user engagement by 25%" is an outcome.
A Complete OKR Example
Let's look at a real-world example for a marketing team:
📌 Objective: Become the go-to resource for team productivity content
Notice how the objective is inspirational ("become the go-to resource") while the key results are specific and measurable. The team knows exactly what success looks like.
A Brief History of OKRs
OKRs have an impressive pedigree. Here's how they evolved:
Andy Grove develops iMBOs at Intel
Building on Peter Drucker's MBOs, Grove creates "Intel Management by Objectives"—the precursor to OKRs.
John Doerr introduces OKRs to Google
Venture capitalist John Doerr, who learned OKRs at Intel, presents them to Google's founders. Google adopts them company-wide.
OKRs spread across Silicon Valley
Companies like LinkedIn, Twitter, and Spotify adopt OKRs. Google publicly shares their OKR practices.
Mainstream adoption
John Doerr publishes "Measure What Matters," bringing OKRs to a global audience. Teams of all sizes adopt the framework.
The Four Benefits of OKRs
1. Focus
By limiting the number of objectives (typically 3-5 per team), OKRs force prioritization. When everything is a priority, nothing is. OKRs create clarity about what matters most.
2. Alignment
OKRs create vertical and horizontal alignment. Team OKRs connect to company OKRs. When everyone knows the company's objectives, they can align their own work accordingly—without needing constant top-down direction.
3. Transparency
OKRs are typically shared across the organization. This transparency creates accountability and helps teams understand how their work connects to company goals. At Google, all OKRs are public—from interns to the CEO.
4. Engagement
When people understand how their work contributes to larger goals, they're more engaged and motivated. OKRs give meaning to daily tasks—they answer the "why" behind the work.
OKRs vs. KPIs: What's the Difference?
This is one of the most common questions about OKRs. Here's the simple answer:
The Key Distinction
KPIs measure ongoing business health (how are we doing right now?).
OKRs drive improvement and change (where do we want to go?).
| Aspect | OKRs | KPIs |
|---|---|---|
| Purpose | Drive change and improvement | Monitor ongoing performance |
| Timeframe | Quarterly (typically) | Ongoing/continuous |
| Nature | Aspirational, stretch goals | Operational, realistic targets |
| Example | "Increase user retention to 75%" | "Maintain 99.9% uptime" |
Most teams need both: KPIs to monitor business health, and OKRs to drive strategic priorities. They're complementary, not competing frameworks.
For a deeper dive, read our article on OKRs vs. KPIs: Which Should Your Team Use?
Frequently Asked Questions
How many OKRs should a team have?
Start with 2-4 objectives per quarter, with 2-4 key results per objective. Less is more—focus beats coverage.
Should OKRs be tied to performance reviews?
Generally, no. When OKRs affect compensation, people set safe goals they know they can hit. Keep OKRs aspirational and evaluate performance holistically.
What's a good OKR completion rate?
If you're consistently hitting 100% of your key results, your OKRs aren't ambitious enough. Aim for 60-70% completion on stretch goals. Google considers 70% a success.
How often should we check OKR progress?
Weekly. The biggest mistake teams make is setting OKRs in January and forgetting about them until March. OKRs should drive weekly priorities, not just quarterly planning.
The Real Challenge with OKRs
Here's what most OKR guides don't tell you: the hard part isn't setting OKRs. It's executing on them.
The Execution Problem
Studies show that 70% of OKRs fail—not because teams set bad goals, but because there's a gap between quarterly planning and daily work. We call this the "translation gap."
Teams have great OKRs, but Monday morning arrives and nobody knows what to actually work on. The objectives are abstract ("Increase retention by 15%") but daily work is concrete ("Fix bug X, call customer Y"). Nobody bridges the gap.
In the next chapter, we'll show you how to write effective OKRs. And in Chapter 3, we'll tackle the translation gap head-on—showing you exactly how to turn quarterly goals into weekly action plans.