What are OKRs? A guide to objectives and key results
Summary
OKRs stand for objectives and key results, a goal-setting framework that can help your team set and track measurable goals. Originally pioneered by John Doerr, this framework pairs the company-level objectives you want to achieve with the key results you’ll use to measure progress—so your goals are tied to your team’s day-to-day work. In this article, we explain how the OKR process works and share examples to get you started setting OKRs for your company, team, or personal life.
If you regularly set team or company goals, you’ve likely heard the term OKRs thrown around. OKRs, or “objectives and key results,” are a goal-setting methodology that can help teams set measurable goals. While most companies set goals, only 16% of knowledge workers say their company is effective at setting and communicating company goals. To increase employee engagement in goal setting and help your teams set and achieve ambitious goals, try setting OKRs.
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What is an OKR? OKR meaning and definition
An OKR is a goal-setting framework that helps organizations define and track ambitious goals. OKR stands for "objectives and key results," and the framework consists of two main components:
Objectives are clear, aspirational goals that define what you want to achieve—increase brand awareness, create the lowest carbon footprint in your industry, that sort of thing.
Key results are specific, measurable outcomes that indicate progress towards achieving the objective—drive one million web visitors, ensure one-quarter of your product’s material is compostable, and so on.
How do OKRs work?
OKRs are designed to help organizations focus on what matters most and align their teams around common goals. By setting challenging yet achievable objectives and defining clear, quantifiable key results, organizations can track their progress, hold themselves accountable, and make data-driven decisions about where to invest their time and resources.
OKRs adhere to a straightforward yet incredibly adaptable framework that adapts to suit almost any objective.
I will [objective] as measured by [key result].
OKRs are typically set and reviewed on a quarterly basis, with regular check-ins throughout the quarter to ensure teams stay on track and can adjust their quarterly OKRs as needed.
History of Objectives and Key Results (OKRs)
In the 1970s, Andy Grove worked at Intel to develop the OKR methodology, drawing inspiration from Peter Drucker, who is widely regarded as the father of modern management. Grove’s adaptation extended Drucker’s concept of management by objectives (MBO) to emphasize measurable outcomes and a sharper focus on the bigger picture. John Doerr, who worked for Grove at Intel, introduced OKRs to Google's founders, Larry Page and Sergey Brin, in 1999. As Doerr explains in his book Measure What Matters:
“Andy had created this system for goal setting that was deceptively simple, but also the polar opposite of the conventional management by objectives (MBO) systems, which tend to be top-down, hierarchical, annual, and linked to compensation.”
Grove's revolutionary idea was that teams perform better by focusing on outcomes rather than procedures. Instead of telling people precisely what to do, his approach was to give employees a goal and let them figure out how to reach it. Grove originally called his approach "Intel Management by Objectives," but later simplified it to just "Objectives and Key Results"—better known today as OKRs.
Setting an effective OKR
Because of how flexible the OKR framework is, you can set and phrase OKRs in a variety of ways. Like any goal, OKRs should be falsifiable and measurable. You should think of OKRs as the pillar of your strategy for the next period of time. However, to set good OKRs, you also need to connect them to your day-to-day work. Here are some best practices to keep in mind:
Limit the number of objectives. Aim for no more than 3-5 objectives per level (company, team, individual) so you can focus on what matters most when implementing OKRs across the entire organization.
Make key results measurable. Key results should have clear metrics to track progress, allowing you to measure what matters and achieve measurable outcomes. Use a mix of quantitative and qualitative KRs to ensure a balanced approach to performance management.
Assign key result owners. For each key result, designate a single owner responsible for tracking and updating progress. This aspirational approach to individual OKRs promotes accountability and ownership at all levels of the organization.
Check in regularly. Schedule frequent (weekly or biweekly) check-ins to track progress, address obstacles, and keep milestones and objectives top of mind. Regular check-ins are key for the successful rollout and adoption of an OKR management framework.
Connect OKRs to daily work. Use OKR software that integrates with your team's daily workflow so goals stay visible and actionable. Companies like Microsoft, LinkedIn, and Spotify have successfully implemented OKRs to track progress, align teams, and drive measurable results. By connecting OKRs to daily work, you can ensure that your strategic planning efforts translate into tangible milestones and achievements.
Even though most companies set goals, research has shown that only 26% of employees have a clear understanding of how their individual work contributes to company goals. That’s because most teams set goals at the beginning of a year or quarter, then never revisit them again. But when employees have clarity on the relationship between their work and their company-level objectives, their motivation doubles. By connecting individual OKRs to your entire organization’s goals, your employees have a context for why their work matters.
Create an OKR templateHow to write an OKR
Now that you understand the key principles of setting effective OKRs, let's dive into the specifics of how to write good OKRs. Whether you're writing OKRs at the company level, team level, or individual level, the process is similar.
Follow these steps to write a clear, compelling OKR:
Step 1: Start with your objectives
To write an OKR, start by defining your objectives. Start with the word "objective," then state your goal in a clear, succinct manner. Use action-oriented, aspirational language that inspires and motivates, and focus on the measurable outcomes you want to achieve rather than the activities or tasks involved. Aim for 3-5 objectives per level (company, team, individual).
Example:
"Objective: Become the market leader in cloud-based project management software."
Step 2: Define 3-5 key results for each objective
Underneath each objective, list your key results with the phrase "key results." Key results should be specific, measurable, and time-bound, and they should use a mix of quantitative and qualitative metrics. To ensure accountability, assign each key result to a single owner with a clear target for measuring success.
Example:
Key Result 1: Increase market share from 15% to 30% by the end of the fiscal year.
Key Result 2: Achieve a Net Promoter Score of 60+ by the end of Q3.
Key Result 3: Launch three new product features per quarter based on user feedback and usage data.
Key Result 4: Increase the free-to-paid conversion rate from 5% to 15% by the end of Q4.
Step 3: Review and refine your OKR
Once you've drafted your OKRs, review and refine them to ensure they're ambitious but achievable. Pressure test your key results to make sure they are truly measurable and have clear targets. Get feedback from key stakeholders and team members, and revise your OKRs based on their input and changing priorities.
Step 4: Communicate and track progress
Finally, communicate your OKRs to all relevant teams and individuals, and ensure everyone understands how their work contributes to the objectives. Use an OKR tool or spreadsheet to track progress and maintain visibility, and schedule regular check-ins to review progress, address obstacles, and update targets as needed. Celebrate successes and learn from failures along the way.
By following these guidelines and best practices, you can write effective OKRs that help you achieve your most important business goals and drive measurable results for your organization. Whether you're a startup or an established company, implementing the OKR methodology can help you take your performance to the next level and achieve ambitious goals.
Read: Asana tips: 3 ways to set achievable goalsOKR examples
Now that you understand the key principles of setting OKRs and how to write them, let's explore some real-world case studies.
The following OKR examples demonstrate the application of the framework at various organizational levels, ranging from company-wide objectives to team-specific goals.
Company OKRs
OKRs are effective at guiding large, long-term goals. Check out a couple of company-wide OKR examples.
Allbirds
Example Allbirds Objective: Create the lowest carbon footprint in our industry.
Key Result: Supply chain and shipping infrastructure are 100% zero-waste.
Key Result: Pay 100% carbon offset for calculated carbon dioxide emissions.
Key Result: 25% of material is compostable.
Key Result: 75% of material is biodegradable.
Zume Pizza
Example Zume Pizza Objective: Delight customers. Ensure that our customers are so happy with our service and product that they have no choice but to order more pizza and to rave about the experience with their friends.
Key Result: Net Promoter Score (NPS) of 42 or better.
Key Result: Order Rating of 4.6/5.0 or better.
Key Result: 75% of customers prefer Zume to the competitor in a blind taste test.
Team OKRs
When you step down a level, from the C-suite to functional teams, OKRs are equally effective. Just as they can direct our strategic thinking, they can guide our functional work, too. Here are a few team OKR examples.
Create an OKR templateMarketing
Objective: Increase brand awareness
Key Result: Drive 1M web visitors
Key Result: Increase social media following by 10x
Key Result: Recruit and onboard 1,000 community members
Product
Objective: Rollout major product initiative by end of quarter
Key Result: Recommendation score of 8 or above
Key Result: 40% of MAU users use new feature
Key Result: Increase sign-up-to-conversion rate from 15% to 25%
HR
Objective: Drive employee impact and engagement
Key Result: Increase employee satisfaction by 20%
Key Result: Achieve 90% employee participation in performance reviews
Key Result: Double positive manager feedback
Sales
Objective: Increase recurring revenue
Key Result: Reach $2M in MRR
Key Result: Increase annual renewals by 25%
Key Result: Reduce churn by 10%
Personal OKRs
OKRs aren't just for the workplace, either. When asked about how he improved his personal life, John Doerr revealed he used his trusty system to maximize the time he spent with his family.
Objective: Have more quality family time, as measured by:
Key Result: Getting home for dinner by 6 pm, 20 nights a month.
Key Result: Being present by turning off the internet router to eliminate distractions.
5 benefits of OKRs
While there are various goal-management frameworks your team can benefit from, OKRs help you align on flexible goals that are falsifiable, time-bound, and easily measurable. One of the biggest advantages to OKRs is that you can map multiple KRs to each objective. That helps teams:
1. Quickly set actionable goals
Teams can easily set and refine their OKRs thanks to their flexible format. If you’re new to OKRs, start with Andy Grove’s distilled methodology:
I will [objective] as measured by [key result].
Instead of spending a lot of time thinking about how to phrase your goals, your team can now jump right into it.
Read: Write better SMART goals with these tips and examples2. Easily set stretch goals
To challenge yourself and your team, consider making at least one of your KRs a stretch goal. Stretch goals are deliberately challenging goals that you’re not 100% confident you can hit—and that’s ok! In fact, at Asana, we aim to hit about 70% of our goals. That tells us we’re setting challenging enough goals, which helps us calibrate better goals for the next quarter.
Read: How to set Big Hairy Audacious Goals (BHAGs) to do the impossible3. Improve cross-functional collaboration
Oftentimes, your objectives will encompass initiatives from more than one department. Take the Allbirds example from earlier. Their objective is to create the lowest carbon footprint in our industry.
To do so, their product, shipping, operations, and design teams need to work together. These teams would likely have individual KRs contributing to that central objective.
Read: 10 easy steps to boost team collaboration4. Increase employee engagement
Because there can be several KRs for each objective, many companies choose to take a hybrid approach when it comes to setting OKRs: company leadership and executives set the objectives, and then individual teams or employees set the key results that contribute to those objectives.
This hybrid top-down/bottom-up approach helps you include and engage your employees in the goal-setting process. Employees will understand exactly how their KR contributes to the company’s top-level objective, and that makes it easier for that KR to remain top of mind during the OKR cycle.
5. Connect daily work to team and company objectives
The biggest benefit of OKRs comes when you can connect your daily work to your team’s strategic objectives. OKRs already begin to do that by connecting the objective to the key results that contribute to it. To get the most out of OKRs, use an OKR tool that connects your daily work and regular projects to your company and business goals.
That’s why we’ve developed Goals in Asana. Instead of locking your goals away in a spreadsheet or PowerPoint, Goals in Asana make it simple to set goals and measure progress in the same place you track everyday work.
Bring your OKR to life
Thomas Edison once quipped that “vision without execution is hallucination.” It’s an idea that deeply inspired Doerr and the OKR methodology: good ideas with poor execution will forever remain just that, ideas.
Doerr says the biggest lever in execution is goal setting—and, by extension, OKRs. It focuses our attention, establishes accountability, and highlights the activities that really drive progress.
“When done right, goal setting is a very powerful tool,” Doerr told Betterworks. “Every team member in the company can link their goals to the corporate goals, knowing that their work is having a direct impact on the success of the company.”
Create an OKR templateFAQ: Objectives and key results (OKR)
Still have questions about setting an OKR? We've got answers!
