OKRs (Objectives & Key Results)

Also known as: OKRObjectives and Key ResultsGoal-Setting FrameworkKey Results

OKR Score = Actual Result ÷ Target Result (scored 0.0 to 1.0)

💡The Concept

OKRs are a goal-setting framework where ambitious Objectives (qualitative goals) are paired with 2-4 measurable Key Results that prove the objective was achieved. Intel invented them. Google adopted them at 40 employees and credits OKRs with 10x'ing their focus. The ideal OKR is 70% achievable — if you hit 100%, your goals weren't ambitious enough.

⚠️The Trap

Teams turn OKRs into task lists. 'Launch feature X by March' is a task, not a Key Result. A proper Key Result measures IMPACT: 'Increase 7-day retention from 40% to 55%.' The difference is enormous — one checks a box, the other drives real business outcomes.

🎯The Action

Set 3-5 Objectives per quarter. Each Objective gets 2-4 Key Results. Key Results must be numerical and measurable. Score them 0.0-1.0 at quarter end. Aim for 0.6-0.7 average — lower means you're sandbagging, higher means you're not ambitious enough.

⚡Pro Tips

Separate 'committed' OKRs (must hit 1.0, like compliance targets) from 'aspirational' OKRs (aim for 0.7, like growth experiments). Mixing them causes confusion.

The most powerful OKRs cascade: company OKR → team OKR → individual OKR, each supporting the one above it.

🚫Common Myths

✗Myth: “OKRs replace KPIs”

✓Reality: KPIs are 'health metrics' you monitor always (like uptime, churn). OKRs are 'change metrics' for specific improvements you're driving this quarter. You need both.

✗Myth: “Everyone should have OKRs”

✓Reality: At startups under 20 people, company-level OKRs are enough. Individual OKRs add bureaucracy without benefit until you're big enough for alignment problems.

📊Real-World Case Studies

🔍

Google

1999-Present

success

Google adopted OKRs when they had just 40 employees, after John Doerr introduced the framework from Intel. Larry Page credits OKRs with helping Google grow from 40 to 100,000+ employees while maintaining strategic alignment. Their OKRs are public within the company — any employee can see anyone else's OKRs, including the CEO's.

Employees When Adopted

Employees Now

180,000+

OKR Score Target

0.6-0.7

OKR Cycle

Quarterly

💡 Lesson: OKRs work at any scale when used correctly: ambitious targets (70% achievement = success), transparent across the organization, and focused on outcomes, not outputs.

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