OKRs

OKRs, short for Objectives and Key Results, is a goal-setting framework used by organizations to define and track objectives and their outcomes. An Objective is a qualitative, inspirational statement of a goal. Each Objective is paired with 2 to 5 Key Results, which are specific, measurable outcomes used to gauge progress toward the Objective. OKRs are typically set at multiple levels (company, team, and individual) and are designed to be aligned so that every level contributes to common priorities. Objectives should be ambitious and time-bound, while Key Results are concrete and verifiable.

Originating at Intel in the 1970s and popularized by venture capitalist John Doerr, OKRs have been adopted by many organizations, notably Google, to promote focus, alignment, transparency, and accountability. The usual cycle is quarterly, though some organizations use annual objectives with regular quarterly reviews. Planning involves setting a small number of Objectives, followed by measurable Key Results. Progress is tracked regularly, with check-ins, updates, and end-of-quarter reviews. Scoring may assign a percentage to each Key Result, but many teams use the scores to reflect learning rather than performance judgment.

Advantages of OKRs include clearer priorities, better cross-functional alignment, and greater visibility into progress. Potential drawbacks include overemphasis on metric-driven behavior, vanity metrics, excessive rigidity, or poor alignment if top-down objectives do not reflect on-the-ground realities. Best practices emphasize keeping the number of Objectives low (commonly 3 to 5 per cycle) and limiting Key Results per Objective (usually 2 to 5), ensuring each Key Result is specific, measurable, and time-bound. OKRs are distinct from KPIs; while KPIs measure ongoing performance, OKRs focus on aspirational outcomes and learning through execution.