OKRs
A goal-setting framework using Objectives and measurable Key Results.
Also known as: Objectives and Key Results, OKR Framework
Category: Frameworks
Tags: goal-setting, frameworks, management, strategy, metrics, performance
Explanation
OKRs (Objectives and Key Results) is a goal-setting framework that helps organizations, teams, and individuals define and track objectives and their outcomes. Popularized by Intel's Andy Grove and later by Google's John Doerr, OKRs have become a staple in high-growth companies.
The structure:
**Objective** - What you want to achieve
- Qualitative and inspirational
- Ambitious but achievable
- Time-bound (typically quarterly)
- Should be memorable and motivating
**Key Results** - How you'll measure progress
- Quantitative and measurable
- 3-5 per objective
- Specific and time-bound
- Outcome-focused (not activities)
Example:
Objective: Become the market leader in customer satisfaction
- KR1: Achieve NPS score of 70+ (currently 55)
- KR2: Reduce customer support response time to under 2 hours
- KR3: Reach 95% customer retention rate
Key principles:
1. Transparency - OKRs are public throughout the organization
2. Alignment - Connect individual OKRs to team and company goals
3. Stretch - Set ambitious goals (achieving 70% is often success)
4. Decoupling - Separate from compensation/performance reviews
5. Regular check-ins - Weekly or bi-weekly progress reviews
Types of OKRs:
- Committed OKRs (must achieve, ~100% confidence)
- Aspirational OKRs (moonshots, ~70% achievement is success)
Benefits:
- Focus - Forces prioritization of what matters most
- Alignment - Connects individual work to company strategy
- Tracking - Provides measurable progress indicators
- Engagement - Gives clarity on what success looks like
Common mistakes:
- Too many OKRs (3-5 objectives max)
- Key Results that are tasks, not outcomes
- Setting and forgetting (need regular review)
- Tying directly to bonuses (encourages sandbagging)
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