okr

OKR stands for Objectives and Key Results, a goal-setting framework used by organizations to define and track goals and their outcomes. An objective is a qualitative, ambitious goal intended to be inspirational, while key results are a small set of quantitative measures that indicate progress toward the objective, typically 2–5 per objective.

Originating at Intel in the 1970s and popularized by venture capitalist John Doerr, OKRs have been adopted by numerous companies, including Google, and spread beyond the tech sector. The framework is used at various scales, from company-wide initiatives to team and individual goals, with emphasis on alignment and transparency.

How OKRs work: organizations typically operate on quarterly cycles, though some use annual cycles. Teams set objectives aligned with strategy and define measurable key results that capture outcomes, not tasks. Progress is reviewed regularly through check-ins and updates, with a formal review at period end. OKRs are usually made visible across the organization to promote alignment, and some implementations employ cascading, where high-level objectives inform lower-level ones. Scoring often uses a 0–1 or 0–100% scale to reflect progress, with stretch targets encouraging ambitious effort.

Example: Objective: "Improve product reliability." Key results: "Achieve 99.5% uptime," "Reduce critical defect rate to below 0.1%," "Reduce mean time to repair to under 4 hours."

Benefits and limitations: supporters cite greater alignment, focus, accountability, and transparency, while critics warn of overemphasis on measurement, potential gaming, or misaligned incentives. Effective OKR programs rely on organizational culture, leadership commitment, regular check-ins, and the ability to adapt objectives to changing circumstances.