It’s easy to set ambitious goals with all the enthusiasm in the world. One minute your team is on track, and the next – the project has lost momentum and you’ve fallen behind.

While the road toward our goals is often paved with good intentions, intentions aren’t enough to maintain the excitement and motivation necessary to reach the finish line.

Maybe you and your team have tried to-do lists, planners, or even the latest productivity apps. But despite these valiant efforts, you still feel a lack of direction. What you really need is a goal-setting system that provides a clear roadmap, aligns your team, and reignites your motivation.

And that's where OKRs, or Objectives and Key Results come in.

For years, companies big and small have turned to the OKR methodology as their go-to method for setting business goals. Why? Because OKRs offer a perfect blend of structure and flexibility, helping teams set ambitious, yet achievable, objectives. Whether you’re a seasoned industry leader or a scrappy startup, OKRs have a way of bringing your goals into sharp focus.

Industry giants like Google and Intel have used OKRs for decades, and their success in doing so has served as the inspiration for countless high-growth startups to do the same.

But as powerful as they are, writing and implementing OKRs can be tricky and time-consuming. That’s why, in this guide, we’ll cover everything you need to know about Objectives and Key Results.

What is an OKR?

As we mentioned, OKRs stand for "Objectives and Key Results." OKRs are a goal-setting framework designed to help organizations define and achieve measurable goals.

• Objective: This is the "What." What are you trying to achieve? And the best objectives are significant, concrete, and action-oriented.
• Key Results: These are the "How." How are you going to pull that objective off? What measurable outcomes are necessary to show you're making progress toward your Objective. They are the specific, tangible evidence of your success.

Chances are, you've probably seen this sentence used to explain OKRs in a nutshell:

For example:

• "I will increase customer satisfaction as measured by a 10% increase in our Net Promoter Score (NPS) and a 20% reduction in customer support tickets."

What is the purpose of OKRs?

Simply put, the purpose of the OKR framework is to help you, your team, and your organization actually achieve the goals being set. Ambitious goals, by their very nature, are not easy to pull off. And, if your goal is easy to accomplish, you're not setting your sights high enough.

OKRs, as a framework, provide everyone the tools they need to move in the same direction, consistently improve, and focus on what matters. They give teams and individuals the tools to:

• Focus on what truly matters by prioritizing the most impactful work.
• Align everyone's efforts towards a shared vision and guarantee everyone is rowing in the same direction.
• Engage employees by connecting their daily tasks to the bigger picture and demonstrating the impact of their work.
• Measure progress objectively and transparently through concrete key results.
• Stretch beyond the comfort zone to achieve breakthrough results and encourage a growth mindset.

Types of OKRs

They might sound simple enough, after all, they only have two components – the objective and the key results. But, OKRs are not a one-size-fits-all type of thing. They come in various forms, each serving a specific purpose within an organization.

• Committed OKRs: These are your "must-win" goals that are critical to your success. These are the non-negotiable objectives you and the team are fully committed to achieving. They're the foundation upon which your company strategy rests.
• Aspirational OKRs: These are your "stretch" goals - the ambitious and challenging targets that push you beyond your perceived limits. A solid aspirational OKR should really push the envelope. So, as a result, there's not as much pressure to pull them off quite like the committed OKRs. Because, even if you fall short, they drive significant progress and innovation within an organization.
• Learning OKRs: These OKRs focus on acquiring new knowledge or skills. They're perfect for exploring new areas, like when you're entering uncharted territory or developing a new product, service, or market. Their purpose is to promote a learning culture and help an organization adapt to a changing environment.

What is the difference between OKRs vs. KPIs?

While both OKRs and KPIs are valuable tools for performance management, they serve distinct purposes and offer unique benefits.

OKRs function as a goal-setting framework, primarily designed to set ambitious, qualitative objectives and track progress through measurable, quantitative key results. They are aspirational and often stretch teams to reach beyond their comfort zone, fostering innovation and growth. OKRs are typically set for shorter timeframes, such as quarters, promoting agility and adaptability in a rapidly changing environment.  

KPIs (Key Performance Indicators) on the other hand, are specific, quantifiable metrics used to track and evaluate ongoing performance against established benchmarks. They are more focused on measuring the success of critical business processes and activities, guaranteeing operational efficiency and adherence to standards. KPIs often have longer time horizons, providing stability and continuity in performance assessment.  

Ultimately, creating OKRs drives ambition and innovation by setting challenging goals and encouraging teams to push their boundaries. KPIs provide stability and control by tracking and measuring critical performance indicators, providing consistent progress towards established targets.

History of Objectives and Key Results (OKRs)

Upon first glance, OKRs might feel like just another trendy buzzword within the world of corporate America. But, their roots stretch back further than you might think.

The story begins in the heart of Silicon Valley in the 1970s. Andy Grove, the legendary CEO of Intel, was searching for a way to align his rapidly growing company and guarantee everyone was pulling in the same direction. He developed a system called "iMBOs" (Intel Management by Objectives), which focused on setting clear objectives and tracking key results. Grove didn't want to simply tell his employees what to do. He wanted to set a goal and allow employees to figure out how to make it happen.

But things didn't end there. John Doerr, a young engineer at Intel was deeply influenced by Grove's approach. Doerr later joined the venture capital firm Kleiner Perkins, where he introduced iMBOs to, what was then, a fledgling startup called Google. The rest, as they say, is history. Google adopted and adapted the framework, calling it "OKRs." Its success (and John Doerr's tireless evangelism) fueled the widespread adoption of OKRs across Silicon Valley and beyond.

How to write OKRs

Ready to start building your OKRs?. Writing OKRs takes deep thinking – don’t be fooled by their apparent simplicity. But like many abilities, your OKR writing skills can be honed and developed. Here's a step-by-step guide on how to write OKRs that drive results:

1. Setting objectives

First and foremost, we start with the objective. Objectives are the "what" you are trying to achieve, but it’s also important to think about the "why." You want to "start with why" as Simon Sinek says.

It might be easy to brainstorm a bunch of seemingly relevant objectives. But just because these objectives are conceivable and hopefully achievable, will they genuinely move the needle? You don't want OKRs to be a framework that keeps you spinning your wheels, going nowhere.

Ask yourself: What problem are we trying to solve and why?

Once you've fleshed that out, you can start to get into the nitty-gritty of the objectives. That is:

• How will this objective help us get more customers? or
• How will this objective help increase average revenue per customer? or
• How will this objective increase the value of the organization?

If the objective doesn't address the why or answer one of these three questions, it's probably not a good objective.

Tips for crafting effective objectives:

1. Be ambitious, but realistic: Your objectives should push you beyond your comfort zone, yet remain attainable within the given timeframe. Aim high, but keep your feet grounded in reality.
2. Be specific & measurable: Avoid vague statements. Use clear language to define what success looks like. Your objective should be specific enough that you'll know without a doubt whether or not it's been achieved.
3. Be time-bound: Every objective needs a deadline. This creates a sense of urgency and helps you prioritize your efforts. Typically, OKRs are set for a quarter or a year.
4. Be aligned with organizational goals: Your objectives should contribute to the bigger picture. Make sure they support the overall strategic goals of your team and the organization.

Examples of well-written objectives:

• Increase customer satisfaction: While this objective provides a direction, it lacks specificity and measurability. A better version could be:
  • Improve customer satisfaction rating from 3.5 to 4.5 (out of 5) by the end of Q4.
• Launch a new product: This is a good starting point, but it needs more detail. Consider revising it to:
  • Successfully launch our new mobile app with 10,000 downloads in the first month.
• Improve team collaboration: Again, this is too broad. A more effective objective might be:
  • Reduce cross-departmental project completion time by 20% through enhanced communication tools and processes.

2. Define your key results

While Objectives paint the big picture, Key results are the specific, measurable milestones that mark your progress towards that picture. They answer the question, "How will we know if we're getting there?" Measurable key results should provide evidence of whether or not you're achieving your Objective.

Tips for writing effective key results:

1. Be measurable & quantifiable: Each key result should have a clear metric attached to it. This allows you to track your progress objectively. Use numbers, percentages, or other quantifiable data to define success.
2. Be specific & clear: Avoid ambiguity. Your key results should leave no room for interpretation. Clearly state what needs to be accomplished.
3. Be challenging but achievable: Set key results that stretch your team, but don't set them up for failure. They should be ambitious, yet realistic within the given timeframe.
4. Be directly related to the objective: Your key results should directly contribute to the achievement of your objective. If a key result doesn't move you closer to your objective, it's likely not a key result.

Examples of well-written key results:

• Objective: Increase website traffic by 20% by the end of Q3.
  • Possible key results:
    • Increase organic search traffic by 15%.
    • Increase social media referrals by 25%.
    • Launch 3 new content marketing campaigns.
• Objective: Improve customer onboarding rate by 10%.
  • Possible key results:
    • Reduce average onboarding time from 3 days to 1 day.
    • Increase customer satisfaction with the onboarding process from 70% to 90%.
    • Create 2 new onboarding training videos on biggest challenges users face.
• Objective: Increase sales revenue by 10% this quarter.
  • Possible key results:
    • Acquire 50 new high-value customers.
    • Increase average deal size by 15%.
    • Close 20% more deals compared to last quarter.

3. Review & refine your OKRs

At this point, you'll have written your OKR. Congrats! But, hold your horses, things don't end there.

Once you've drafted your initial set of objectives and key results, it's time to take a step back and refine them.

• Confirm alignment with organizational goals: Double-check that your OKRs are in sync with the broader goals and strategies of your team and organization. Are they contributing to the bigger picture? If not, make adjustments to guarantee alignment.
• Check for clarity & measurability: Review each objective and key result for clarity and specificity. Can you easily understand what needs to be achieved? Are the key results measurable and quantifiable? If not, rephrase or revise them to improve clarity and measurability.
• Make necessary adjustments: Based on your review, make any necessary changes to your OKRs. This might involve rewording, adding, or removing objectives or key results. Don't be afraid to iterate and refine until you're satisfied with the final product.

4. Get feedback from others

The OKR writing process shouldn't be an independent affair. Once you’ve drafted your OKRs, get feedback from relevant stakeholders. Share your OKRs with team members, your manager, or other colleagues who can offer valuable insights. Fresh perspectives can help you identify potential blind spots or areas that possibly need improvement.

After gathering feedback, take the time to thoughtfully incorporate the suggestions into your OKRs. Being open to input and willing to make adjustments, even if it requires some compromise, will help ensure that your OKRs are well-rounded and more likely to succeed.

5. Track progress regularly

Once your OKRs are finalized and communicated, the real work begins. Now you must implement OKRs. Part of what makes them so powerful is not only the clarity and laser focus they provide but also the fact they're measurable. So, with your OKRs in hand, you'll want to track your progress as you move toward your objective.

• Establish a system for monitoring progress: Choose a method that works for you and your team. This could involve using project management software, spreadsheets, or even a simple whiteboard. The key is to have a centralized place where everyone can see progress and updates on each key result.
• Schedule regular check-ins: Set a recurring cadence for reviewing progress on your OKRs. This could be weekly, bi-weekly, or monthly, depending on the nature of your goals and the length of your OKR cycle. Use these check-ins to discuss progress, identify any roadblocks, and brainstorm solutions.
• Make adjustments as needed: OKRs are not set in stone. As you track progress, you may discover that some key results are more challenging than anticipated, or that circumstances have changed. Be flexible and willing to adjust your OKRs as needed to ensure they remain relevant and achievable. This could involve modifying key results, adjusting timelines, or even re-evaluating your objectives.

5. Evaluate & score OKRs retrospectively

At the end of your OKR cycle (typically a quarter or year), look back and assess your progress. This retrospective evaluation is a necessary step in the OKR process, as it allows you to learn from your experiences and improve your goal-setting for the future.

• Reflect on achievements & challenges: Gather your team and take time to reflect on the OKR cycle. Celebrate the successes and acknowledge the challenges. Discuss what went well, what didn't, and why. This open dialogue helps nurture a culture of learning and continuous improvement.
• Use a scoring system to assess progress on each key result: Assign a score to each key result based on how much progress was made. A common scoring system is the 0-1 scale, where 0 represents no progress and 1 represents complete achievement. You can also use other scales or scoring methods that work for your team.
• Analyze results to identify areas for improvement: Once you've scored your key results, analyze the data to identify patterns and trends. Look for areas where you excelled and areas where you fell short. Ask questions like:
  • Did we set realistic objectives and key results?
  • Were our key results truly measurable?
  • Did we track progress effectively?
  • What roadblocks did we encounter, and how can we avoid them in the future?
• Apply lessons learned to future OKR cycles: The insights gained from your retrospective analysis should inform your future OKR setting. Use the lessons learned to refine your goal-setting process, improve your tracking methods, and set even more effective OKRs in the next cycle.

OKR examples

1. Company OKRs

Company OKRs are the high-level objectives that guide the entire organization. They should be ambitious, inspiring, and aligned with the company's overall mission and vision.

• Objective: Become the market leader in our industry.
  • Key results:
    • Increase market share from 15% to 25% by the end of the year
    • Achieve a Net Promoter Score (NPS) of 70 or higher.
    • Secure 3 major partnerships with industry leaders
• Objective: Deliver exceptional customer experiences.
  • Key results:
    • Reduce customer churn rate by 10%
    • Achieve an average customer satisfaction rating of 4.5 out of 5
    • Implement a new customer feedback system and gather insights from at least 500 customers.
• Objective: Cultivate a culture of innovation and learning.
  • Key results:
    • Launch 2 new innovative products or services this year
    • Increase employee participation in training and development programs by 20%
    • Implement a company-wide idea generation platform and receive at least 100 new ideas.

2. Team OKRs

Team OKRs cascade down from the company OKRs and define the specific goals and key results for each team. They should be aligned with the company OKRs and contribute to their achievement.

• Marketing team:
  • Objective: Increase brand awareness and generate leads.
    • Key results:
      • Increase website traffic by 30%
      • Generate 1000 new leads per month
      • Launch 2 successful social media campaigns
• Sales team:
  • Objective: Achieve quarterly sales target of $1 million.
    • Key results:
      • Close 50 new deals
      • Increase average deal size by 10%
      • Improve sales conversion rate from 5% to 8%
• Product development team:
  • Objective: Successfully launch new product version 2.0.
    • Key results:
      • Complete all development and testing by [date]
      • Achieve 95% customer satisfaction with new features
      • Acquire 5000 new users within the first month of launch

3. Individual OKRs

Individual OKRs are personal goal-setting tools that help individuals align their personal objectives with the broader team or organizational goals. These OKRs focus on what each person aims to achieve in their role and how their efforts contribute to the overall success of the team.

• Marketing specialist:
  • Objective: Boost social media engagement.
    • Key results:
      • Increase Instagram followers by 20%
      • Achieve an average engagement rate of 8% across all posts
      • Host 3 interactive webinars with at least 100 attendees each
• Software developer:
  • Objective: Improve code quality and efficiency.
    • Key results:
      • Reduce code review feedback time by 30%
      • Decrease the number of bugs reported post-release by 25%
      • Implement automated testing for 80% of new features
• Customer support representative:
  • Objective: Enhance customer service experience.
    • Key results:
      • Achieve a customer satisfaction score of 95% or higher
      • Reduce average response time to support tickets to under 15 minutes
      • Resolve 90% of customer issues within the first interaction
• Sales representative:
  • Objective: Expand client base.
    • Key results:
      • Secure 15 new client contracts
      • Increase monthly sales revenue by 25%
      • Enhance client retention rate by 10%
• HR manager:
  • Objective: Improve employee engagement and satisfaction.
    • Key results:
      • Increase employee engagement survey scores by 15%
      • Implement 3 new employee wellness programs
      • Reduce employee turnover rate by 20%

Benefits of OKRs

OKRs aren't just a fancy acronym - they're a roadmap to success! They bring tons of benefits that help organizations rock their goals and work together:

1. Focus & clarity

OKRs serve as a compass for the team, cutting through the noise and pointing everyone in the same direction. They help you quickly set goals that aren't just vague aspirations, but clear targets you can actually hit. This means no more confusion about what's important – everyone knows exactly where they're going and how their work fits into the bigger picture.

Suddenly, that report you're writing or that bug you're fixing isn't just another item on your to-do list, it's a step towards a shared goal, and that can make all the difference in how motivated and engaged you feel.

2. Performance & engagement

OKRs aren't about playing it safe; they're about setting those "stretch goals" that get your team excited and pushing boundaries. It's that sweet spot between challenging and achievable, where motivation and engagement really kick into high gear. And because OKRs force you to prioritize, you're not just busy, you're busy doing the work that truly matters.

No more spinning your wheels on projects that don't move the needle – OKRs help you focus your energy where it'll have the biggest impact. Not only that but when people have a say in setting their own goals, it's not just a task list handed down from above. It's a personal commitment, a chance to own their piece of the puzzle and feel genuinely invested in the outcome.

3. Collaboration & alignment

OKRs are like a team-building exercise on steroids. They smash those departmental silos and get everyone talking, working together towards shared goals. No more Marketing vs. Sales turf wars – with OKRs, it's all hands on deck, rowing in the same direction.

And because those goals are out in the open, there's a sense of transparency and accountability that builds trust. It's not about finger-pointing, it's about owning your part and knowing that everyone else is doing the same. That kind of shared responsibility can really transform a company's culture.

4. Agility & adaptability

The business world is anything but static. With OKRs and their shorter cycles, your team isn't stuck with outdated plans when the market throws a curveball. It's like having a built-in reset button every quarter, allowing you to pivot and adjust your course as needed. This keeps everyone on their toes and ready to tackle whatever comes their way.

5. Data-driven decision-making

Forget relying on gut feelings or outdated reports. OKRs make decision-making much more realistically achievable. By tracking those key results, you're gathering real-time data on what's working and what's not. It's like having a crystal ball that helps you make informed choices about where to focus your energy and resources next.

6. Continuous improvement

Nobody's perfect, and OKRs embrace the idea that there's always room to grow. With regular check-ins and those end-of-cycle retrospectives, you're creating a culture where learning from mistakes is encouraged, and everyone's constantly looking for ways to level up. It's a recipe for a team that's always evolving and getting better.

7. Employee development

OKRs aren't just about company goals, they're about personal growth too. They help individuals pinpoint their strengths and weaknesses, and create a roadmap for development. It's like having a built-in career coach, guiding you towards the skills and knowledge you need to reach your full potential. That kind of investment in employees not only benefits them, it benefits the whole company.

Common OKR mistakes to avoid

While OKRs are a powerful tool for goal setting and alignment, they're not immune to missteps. Here's a closer look at some common traps to watch out for:

• Overloading on objectives: It's easy to get carried away with ambition, but setting too many objectives can lead to scattered focus and diluted efforts. Instead, prioritize a few key objectives that truly matter so your team can give them the attention they deserve.
• Fuzzy goals: Vague or poorly defined objectives and key results are a recipe for confusion and missed targets. Craft goals that are specific, measurable, and leave no room for misinterpretation. If you can't clearly define success, you'll struggle to achieve it.
• "Set it and forget it" mentality: OKRs are not a one-and-done exercise. They require ongoing attention and nurturing. Regularly track progress, review your OKRs with your team, and be willing to make adjustments as needed. Flexibility is key in a dynamic environment.
• Lack of buy-in: OKRs are most effective when they're embraced by the entire team. Make sure everyone understands the process, feels involved in the goal-setting, and sees the value in working towards shared objectives. Without buy-in, OKRs can feel like just another top-down mandate.
• Confusing tasks with key results: It's easy to fall into the trap of listing activities as key results. Remember, key results should focus on outcomes, not just tasks. Instead of focusing on "holding weekly meetings," consider a key result like "increase team collaboration score by 15%."
• Failing to align OKRs across the organization: If individual, team, and company OKRs aren't connected, it can lead to misaligned efforts and missed opportunities. Guarantee that OKRs cascade down from the top, creating a clear path toward achieving the overarching company vision.
• Neglecting regular check-ins: OKRs shouldn't be tucked away and forgotten until the end of the quarter. Schedule regular check-ins to discuss progress, address challenges, and make necessary adjustments. This keeps everyone focused and accountable.

Set your sights on success with OKRs 🚀

Writing OKRs requires more than just listing goals and metrics. It demands a thoughtful and deliberate approach that combines ambition with realism, specificity with flexibility, and individual aspirations with organizational alignment. By embracing the core principles of OKRs, promoting a culture of transparency and collaboration, and avoiding common pitfalls, you can unlock the full potential of this powerful framework.