Objectives and key results
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A goal-setting framework that pairs ambitious objectives with measurable key results to track progress.
OKRs are a goal-setting framework. An objective is what you want to achieve (qualitative, ambitious). Key results are how you measure progress (quantitative, specific). Together, they create alignment between what matters and how you know you are getting there.
Google popularized OKRs, and most tech companies use some version. The framework works because it separates aspiration from measurement. KPIs measure ongoing health; OKRs drive change. 'Become the leading developer platform' is an objective. 'Increase monthly active developers from 50k to 100k' and 'Achieve 60 NPS among active users' are key results.
OKRs fail when they become task lists. 'Launch the new dashboard' is not a key result; it is a task. A key result measures an outcome: 'Increase dashboard adoption to 70% of active accounts.' The team might launch a new dashboard to hit that result, or they might find a different approach entirely. OKRs should connect to the roadmap but not replace it.
Examples
A product team sets quarterly OKRs.
Objective: Make onboarding effortless for new developers. KR1: Reduce time to first successful API call from 45 minutes to under 10. KR2: Increase 7-day activation rate from 30% to 50%. KR3: Reduce onboarding support tickets by 40%.
A company reviews OKRs at the end of the quarter.
KR1 hit 70% (time reduced to 18 minutes). KR2 hit 90% (activation rate reached 47%). KR3 hit 120% (tickets dropped by 48%). The team scores the overall objective at 0.75, which is considered strong in the OKR framework.
OKRs cascade from company to team level.
Company OKR: 'Win the enterprise market.' Engineering team OKR: 'Achieve SOC 2 Type II certification.' Marketing team OKR: 'Generate 50 enterprise MQLs per month.' Each team's OKRs support the company objective through their specific domain.
In practice
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Frequently asked questions
What is the difference between OKRs and KPIs?
KPIs are ongoing metrics you always track (revenue, churn, NPS). OKRs are time-bound goals for a specific period (this quarter). KPIs measure health. OKRs drive change. Your KPIs might inform which OKRs to set.
How many OKRs should a team have?
3-5 objectives with 2-4 key results each. More than that and nothing gets real focus. If everything is a priority, nothing is a priority. The constraint forces teams to choose what matters most for the quarter.
Related terms
The most important metrics a business tracks to evaluate whether it is achieving its strategic goals.
The single metric that best captures the core value a product delivers to its customers.
A strategic plan that outlines upcoming product features, priorities, and timelines to align the team and communicate direction.
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