If you’ve worked in startups, tech companies, or even large organizations in the past few years, you’ve probably heard the term “OKRs” thrown around in strategy meetings. It stands for Objectives and Key Results, and while it might sound like yet another management buzzword, OKRs have become one of the most popular frameworks for setting and tracking goals. Companies like Google, Intel, and LinkedIn have used OKRs to scale, focus, and align their teams around what really matters.
But what exactly are OKRs? And more importantly, how do you use them in a way that doesn’t just create more paperwork but actually helps your team move forward? Let’s break it down.
What Are OKRs?
At their core, OKRs are a simple framework for setting goals. They’re made up of two parts:
- Objectives – These are the “what.” An objective is a clear, inspiring, and qualitative goal. It should be ambitious enough to stretch your team but still feel achievable. For example: “Delight customers with a world-class support experience.”
- Key Results – These are the “how.” Key results are measurable outcomes that tell you whether you’re making progress toward your objective. They’re specific, time-bound, and ideally quantifiable. For the objective above, key results might include:
- Reduce average response time from 24 hours to 6 hours.
- Achieve a customer satisfaction score of 90% or higher.
- Resolve 80% of tickets without escalation.
That’s it—objectives paired with key results. Simple, but powerful.
Why Companies Use OKRs
The popularity of OKRs comes down to a few big advantages:
- Clarity and Focus: Instead of trying to do everything, OKRs force you to define what’s most important right now.
- Alignment: When everyone from leadership down to individual contributors sets their OKRs, it becomes easier to see how each team’s work connects to the larger mission.
- Motivation: Because objectives are ambitious, teams are encouraged to push beyond business as usual. Key results give people a tangible way to measure success.
- Transparency: In many companies, OKRs are visible across teams. That transparency builds accountability and helps prevent silos.
Google’s co-founder Larry Page once said that OKRs helped them achieve “10x growth.” While not every company is Google, the framework has proven effective across industries, from startups to nonprofits.
The Common Pitfalls
As straightforward as OKRs sound, they’re surprisingly easy to get wrong. Here are a few mistakes that happen often:
- Confusing tasks with key results: Saying “launch a new website” is not a key result. That’s just a task. The key result would be something measurable, like “increase qualified leads from the website by 20%.”
- Setting too many OKRs: If you have 12 objectives, you don’t have focus—you have chaos. The sweet spot is usually 3–5 objectives per team or individual.
- Making them too easy: OKRs should stretch your team. If you’re hitting 100% of your key results every quarter, you’re probably not aiming high enough. Most companies aim for about 70% completion.
- Treating them as a checklist: OKRs aren’t meant to capture every single thing you do. They highlight the most impactful goals, not the routine work that keeps the lights on.
How to Write Effective OKRs
If you’re new to OKRs, here’s a straightforward process to get started:
- Start with the bigger picture – What’s the mission or vision of your company or team? Your objectives should tie back to this.
- Define 3–5 objectives per quarter – Make sure they’re qualitative, inspiring, and specific enough to rally your team.
- List 2–4 key results per objective – Ensure they’re measurable, outcome-driven, and time-bound. Ask yourself: If we achieve these results, will the objective be met?
- Check for alignment – Share OKRs across teams. Make sure marketing’s OKRs aren’t clashing with product’s or sales’.
- Review regularly – Don’t set OKRs once and forget them. Check in weekly or biweekly to see how you’re tracking.
OKRs in Real Life
Let’s take an example. Imagine you run a small SaaS company that just launched a new product. Here’s how your OKRs for the quarter might look:
Objective 1: Establish product-market fit
- Key Result 1: Reach 500 active users by end of Q2.
- Key Result 2: Achieve a net promoter score (NPS) of 40+.
- Key Result 3: Get at least 20 customer testimonials or reviews.
Objective 2: Build brand awareness
- Key Result 1: Publish 15 blog posts that each generate 500+ views.
- Key Result 2: Grow social media following by 25%.
- Key Result 3: Secure 3 media mentions or guest appearances.
Notice how the objectives are aspirational while the key results are concrete and measurable. Even in a small company, this structure creates alignment and momentum.
Making OKRs Stick
Here’s the truth: introducing OKRs is the easy part. Making them stick in your culture is harder. The most successful organizations do a few things consistently:
- Leaders set the tone – If executives treat OKRs seriously, everyone else will too. If leadership ignores them, they’ll die quickly.
- They’re part of the rhythm – OKRs aren’t just a quarterly exercise. They show up in team meetings, one-on-ones, and retrospectives.
- Celebrate progress – Hitting a key result should feel like a win, even if you don’t get 100%. Recognizing progress keeps morale high.
- Adapt as needed – Life happens. Markets change. It’s okay to adjust OKRs mid-quarter if the original ones no longer make sense.
Final Thoughts
OKRs are not magic. They won’t fix a broken culture, make up for poor leadership, or instantly align a dysfunctional team. But when used well, they can be one of the simplest and most effective tools for focus and growth.
Think of OKRs like a compass. They don’t walk the path for you, but they point you in the right direction and keep you from wandering aimlessly. Whether you’re a three-person startup or a global enterprise, the clarity that comes from asking, “What do we really want to achieve, and how will we know we’re making progress?” is invaluable.
If you’re considering trying OKRs, start small. Experiment with a single team or a single quarter. Learn from what works and what doesn’t. Over time, you’ll find the rhythm that fits your organization. And who knows? With the right focus, your OKRs might just be the spark that helps your team achieve its next big leap.
