What is OKR?
OKR stands for Objectives and Key Results — a goal-setting framework used by individuals, teams, and organizations to define ambitious goals and track measurable outcomes. OKRs help create alignment, focus, and transparency by connecting daily work to larger strategic priorities and personal growth opportunities.
A brief history of OKRs
The OKR framework was popularized by Andy Grove at Intel in the 1970s, evolving from the concept of Management by Objectives (MBO) introduced by Peter Drucker. John Doerr, a venture capitalist and former Intel executive, introduced OKRs to Google in the late 1990s, where they became a cornerstone of the company’s operating system.
Since then, OKRs have been adopted by organizations of all sizes — from global enterprises like LinkedIn, Spotify, and Twitter to fast-growing startups and mission-driven non-profits — thanks to their simplicity, adaptability, and ability to engage both teams and individuals in meaningful progress.
Key components of OKRs
An OKR consists of two parts:
-
Objective
A clear, qualitative statement of what you want to achieve. It should be ambitious, inspiring, and directional — motivating both teams and individuals.Example:
Improve customer onboarding experience. -
Key Results
A set of 2–5 specific, measurable outcomes that indicate progress toward the objective. They answer the question: How will we know if we’re succeeding?Example:
- Reduce onboarding time from 10 days to 3 days.
- Achieve a 90% satisfaction score in post-onboarding surveys.
- Increase onboarding completion rate to 95%.
Why OKRs matter
OKRs are designed to drive clarity, alignment, and progress by helping teams and individuals focus on what truly matters.
They enable organizations to:
- Prioritize critical objectives over busywork.
- Align cross-functional efforts toward shared goals.
- Connect day-to-day work to long-term vision, creating purpose and motivation at every level.
- Foster a culture of continuous improvement by focusing on outcomes, not just activities.
Importantly, OKRs are not just about tracking team performance — they are a framework for individual contributors to understand how their work supports broader goals and where they can focus to grow and make meaningful impact.
OKRs vs. other goal frameworks
| Feature | OKRs | KPIs |
|---|---|---|
| Purpose | Drive change and focus on outcomes | Monitor ongoing business health |
| Nature | Ambitious, time-bound goals | Stable, long-term metrics |
| Measurement | Graded on progress (often 0–10 scale) | Tracked as success/failure or % value |
| Cadence | Set quarterly or annually | Measured continuously |
Many organizations use both OKRs and KPIs together — using OKRs to push innovation and growth, while KPIs ensure the stability of core operations.