Companies like Intel, Google and LinkedIn use the OKR framework to create clarity, focus and accountability. When used correctly, it’s a system that connects your company strategy to the daily work of your team.
OKR meaning and core concept
An OKR consists of an objective — where you’re going — and a handful of key results — how you’ll know you’re getting there.
The formula: I will [objective] as measured by [key results].
Effective OKRs convert strategy into measurable, team-level action. OKRs are transparent, time-bound and measurable. Set them quarterly. Aim to stretch beyond business as usual while keeping execution concrete. Start with three to five objectives, each with three to five key results.
The OKR framework: how it works
- Objectives are qualitative, ambitious and action-oriented. They clarify what you want to achieve.
- Key results are quantitative milestones. They measure how you’re making progress against those objectives.
- Initiatives are the projects and tasks you’ll do to influence the key results.
A typical cycle: set quarterly goals, run weekly check-ins, review outcomes at quarter’s end, then reset. Use types to clarify intent:
- Committed OKRs: must-hit goals (e.g., launch dates, revenue targets).
- Aspirational OKRs: stretch goals where ~70% counts as success.
- Learning OKRs: used for discovery when the goal is insight.
The history behind OKRs
The concept traces to Peter Drucker’s Management by Objectives (MBO). Andy Grove at Intel refined it into the modern OKR system — more collaborative, quarterly, and decoupled from compensation. Venture capitalist John Doerr introduced OKRs to Google in 1999, popularizing the approach across Silicon Valley and beyond.
Why OKRs matter for startups
OKRs are the connective tissue between vision, strategy and daily work. They align distributed teams, force prioritization, and make progress transparent. For founders managing rapid growth, OKRs help maintain focus and cross-functional alignment.
How to write OKRs
- Define the objective. Ask: What is the most important thing to achieve this quarter? Keep it qualitative, memorable and free of jargon. Example: “Launch a self-serve onboarding experience that boosts activation.”
- Identify 3–5 key results. Describe outcomes, not tasks. For example: “Increase activation rate from 45% to 60%,” not “Redesign onboarding.” Each key result needs a metric, target and timeframe.
- Review and iterate. Hold weekly or biweekly check-ins to track progress and unblock work. At quarter’s end, score key results to inform the next cycle.
OKR examples across company levels
- Company-Level
- Objective: Build the most trusted AI platform for small businesses.
- KR1: Increase NPS from 35 to 60 among SMB customers.
- KR2: Reduce churn from 10% to 6%.
- KR3: Launch a new compliance dashboard to 100% of enterprise accounts.
- Team-Level (Engineering)
- Objective: Strengthen developer velocity and satisfaction.
- KR1: Reduce average deployment time by 40%.
- KR2: Move 100% of core services to new CI/CD pipelines.
- KR3: Achieve 90% developer satisfaction on the internal tooling survey.
- Individual
- Objective: Improve leadership feedback skills.
- KR1: Conduct four structured feedback sessions per direct report this quarter.
- KR2: Raise peer feedback score by 20% in the next company survey.
- KR3: Complete one advanced management training course.
Best Practices and Common Pitfalls
Do this:
- Share OKRs publicly. Transparency is the point.
- Tie key results to outcomes. Focus on behavior and impact, not just output.
- Run a steady cadence. 15-minute weekly check-ins; quarterly retros with scoring.
- Align cross-functionally. Review draft OKRs together to expose dependencies.
Avoid this:
- Using OKRs for performance management. Using OKRs as a motivator or evaluation tool for individuals is counterproductive.
- Setting too many objectives. Focus beats volume.
- Confusing KPIs with OKRs. KPIs are health metrics; OKRs drive change.
- Writing vague key results. If it’s not measurable, it’s not a key result.
OKRs vs. other goal frameworks
- OKRs vs KPIs: KPIs track ongoing health (e.g., MRR, uptime). OKRs push a specific change.
- OKRs vs SMART Goals: Key results should be SMART, but OKRs encourage stretch.
- OKRs vs MBOs: OKRs mix top-down and bottom-up, and are decoupled from pay.
Implementing OKRs across teams
Roll out with a hybrid, top-down and bottom-up approach. Leadership sets a few company-level goals. Teams then create aligned OKRs for how they can help achieve those goals. Start with leadership modeling good OKRs. Train teams with examples and a shared template. Expect a few quarters to calibrate ambition vs. achievability.
Make progress visible. Use a single source of truth — OKR software or a shared sheet. Run weekly team check-ins, monthly cross-team updates and quarterly scoring.
Pilot first. Trial in one department to refine the process before scaling.
Measuring and grading OKRs
- Binary (Grove): Yes/No.
- Google’s scale: 0.0 to 1.0; ~0.7 often signals success for stretch goals.
- Traffic light: Red/Yellow/Green as a quick signal.
Scoring is for learning, not judgment. Average key result scores to get the objective score and use the insights to set better goals next quarter.
A Quick Reference Framework
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