What Are OKRs? Definition and Examples

What Are OKRs?

Objectives and Key Results (OKRs) constitute a structured framework for goal-setting, comprising qualitative objectives that define target ambitions and quantitative key results that measure progress toward these objectives.

Key Insights

Effective OKRs clearly differentiate qualitative ambitions (Objectives) from quantitative success measures (Key Results).

Best practice is to limit the number of OKRs per cycle to maintain strategic focus.

Regular, typically quarterly, OKR cycles facilitate ongoing assessment and agile adaptation.

OKRs emphasize measurable outcomes over task completion.

Initially developed by Intel and expanded at Google, OKRs support alignment and transparency across organizational contexts.

Key insights visualization

Objectives define the desired outcome qualitatively, providing strategic clarity. Key Results, generally two to five per objective, outline specific, measurable criteria to evaluate achievement. Organizations often review OKRs quarterly, balancing sufficient duration to measure impact with flexibility for iterative improvement.

In practice, task-oriented goals should be reframed into measurable OKRs to improve strategic value. For example, "redesign the checkout page" translates effectively into an outcome-driven key result such as "reduce cart abandonment rate from 60% to 45%," linking clearly to business performance metrics like Net Promoter Score (NPS) or user satisfaction ratings.

When it is used

OKRs thrive where flexibility, innovation, and transparency are paramount. They prove essential in fast-paced environments—for instance, modern businesses with cross-functional teams where staying aligned towards the broader company vision may be challenging.

Common scenarios include:

Fast-growing startups: As rapid scaling can result in instability, OKRs serve as focused, measurable guidance.
Established enterprises: Larger companies implement OKRs to retain agility and prioritize strategic projects without losing operational strength.
Nonprofits: Mission-driven organizations adopt OKRs to track measurable achievements, such as donation retention or volunteer engagement.
Personal development: Individuals use OKRs less frequently but effectively for career development or personal improvement goals.

Additionally, OKRs seamlessly integrate with other frameworks like agile methodologies or balanced scorecards, complementing rather than replacing daily tasks or project management structures.

Crafting effective OKRs

Align objectives with strategy

Ensure each OKR clearly aligns to the organization’s overarching mission. For instance, a strategic priority "Expanding market presence in Asia" could generate the OKR "Launch localized marketing campaigns in Japan."

Balance ambition and realism

OKRs are intentionally challenging, urging teams to innovate and exceed ordinary expectations. However, overly ambitious goals may demotivate teams. The key is finding the sweet spot of ambitious yet achievable targets.

Limit objectives and key results

Too many objectives dilute your focus and confuse teams. Best practice suggests establishing three to five clearly-defined objectives, each with no more than five critical key results.

Measure outcomes, not tasks

A common pitfall is focusing on tasks rather than meaningful outcomes. Instead of "Conduct 10 user interviews," a stronger key result would read "Use feedback from interviews to shape three actionable product enhancements." The emphasis should always remain on impact, rather than merely activity.

Conduct regular check-ins and refine accordingly

Conduct check-ins weekly or bi-weekly to maintain momentum, assess progress, and promptly address any obstacles. Regular updates prevent last-minute surprises and enable agile adjustments to reach desired outcomes.

Grade outcomes and derive lessons

At quarter’s end, objectively assess results using a scoring system (from 0–1, percentages, or color codes). Embrace these evaluations as learning opportunities—not as punitive measures. Setting a precedent where achievement of around 70–80% indicates proper ambition is widely considered best practice.

OKRs vs. KPIs

Organizations often confuse OKRs (Objectives and Key Results) with KPIs. While both frameworks utilize metrics, they serve distinct purposes:

OKRs aim to facilitate improvement, innovation, or substantial change, typically within a short-term timeframe such as quarterly.
KPIs continuously track the ongoing health and performance of stable processes and indicate operational steady-state metrics.

Aspect	OKRs	KPIs
Focus	Growth, change, innovation	Operational consistency and health
Timeframe	Usually quarterly	Continuous, indefinite
Ambition	Encourages challenging innovation	Targets stable or incremental gains
Example	“Double email open rates in Q2”	“Maintain email open rate of 25% monthly”
Common Usage	Strategic alignment on priorities	Day-to-day operational monitoring

Successful organizations usually employ both KPIs and OKRs, leveraging KPIs for routine performance tracking and using OKRs to drive innovative initiatives or changes in direction.

Implementing OKRs in cross-functional teams

Many modern projects span multiple departments and diverse skill sets. Cross-functional teams combine specialists in engineering, marketing, support, product management, and more. OKRs particularly shine here by clearly outlining responsibilities and common goals.

For example, the objective "Streamline the onboarding experience" could include key results like:

Reducing onboarding duration from 7 to 3 days.
Increasing onboarding completion rates from 60% to 80%.
Achieving 4.5 out of 5 in onboarding satisfaction surveys.

Different groups can collaborate effectively based on clearly defined metrics:

Marketing tailors clear instructional resources.
Engineering simplifies the user interface.
Support quickly addresses user inquiries.
Product management coordinates cross-team efforts and tracks incoming feedback.

OKR Check-in Process

flowchart TB A[Weekly Team Meeting] --> B[Review Key Results Progress] B --> C[Identify Blockers or Gaps] C --> D[Propose Action Items or Adjustments] D --> E[Update OKR Tracker/Tools] E --> A

In establishing frequent feedback loops and structured check-ins, such a process ensures continuity and quick pivoting based on real-time data.

Case 1 – Tech startup scaling user base

A tech startup aiming to boost user growth could define the following OKR:

Objective: Grow monthly active users (MAU) on the new mobile app.
Key Results:
1. Increase MAUs from 10,000 to 20,000.
2. Achieve sustained 15% weekly growth in app sign-ups.
3. Reduce user churn rates from 10% to 5%.

Here, marketing might launch referral campaigns, product engineering develops social sharing features, and customer support optimizes help systems to improve retention. If weekly reviews show persistent churn, the startup can promptly identify issues in onboarding and promptly implement a simplified sign-up process. Their final evaluation could yield an 80% target achievement, demonstrating effective stretching goals while allowing for agile course correction mid-activity.

Case 2 – Nonprofit increasing donor engagement

Consider a nonprofit organization setting the objective to "Enhance donor engagement and retention" with the following key results:

Grow monthly recurring donors from 200 to 300 people.
Increase the average donation size by 20%.
Launch two high-quality donor events securing at least an 80% satisfaction rate from attendees.

Different departments coordinate their efforts where the development team enhances the digital donation platform, communications tailor personalized messages, and event planners orchestrate memorable engagement opportunities. Regular check-ins reveal donor numbers categorize growth strongly, while donation sizes stagnate. The organization responds by highlighting impactful stories, successfully influencing donations, and deepening engagement.

This shared goal-setting effectively aligns different staff roles—communications specialists, platform developers, and event planners—around unified measurable results critical for organizational sustainability.

Origins

OKRs originated and evolved from the concept of Management by Objectives (MBO), first popularized by management expert Peter Drucker. Andy Grove refined the concept at Intel, promoting measurable outcomes and transparency. Grove later taught John Doerr, who introduced OKRs to Google in the late 1990s.

OKRs have since proliferated widely due to their simplicity, transparency, combination of ambitious challenge, and practical measurability—found pivotal for maintaining startup agility even through tremendous organizational growth.