OKR (Objectives and Key Results)
A goal-setting framework where an Objective states what you want to achieve and Key Results define the measurable outcomes that prove you achieved it.
What are OKRs?
OKRs (Objectives and Key Results) are a goal-setting framework developed at Intel by Andy Grove and popularised by John Doerr, who introduced them to Google in 1999.
- Objective — A qualitative, inspiring statement of what you want to achieve. It answers "where do we want to go?"
- Key Results — 2–5 measurable outcomes that define what success looks like. They answer "how will we know we got there?"
**"An objective is a direction. A key result is a destination."** — John Doerr
Good OKR examples
Objective: Make onboarding so good that new users reach their first value moment without help.
| Key Result | Owner | Baseline | Target |
|---|---|---|---|
| KR1: Onboarding completion rate | Growth PM | 34% | 60% |
| KR2: Time to first project created | Growth PM | 8 min | < 3 min |
| KR3: Day-7 retention for new cohorts | Growth PM | 28% | 42% |
Outcomes vs. outputs
The most common OKR mistake is writing outputs (tasks) as Key Results.
| Output (wrong) | Outcome (right) |
|---|---|
| Ship onboarding redesign | Onboarding completion rate reaches 60% |
| Launch Slack integration | 30% of active users connect Slack within 14 days |
| Run 3 customer interviews | Identify 5 validated pain points with supporting quotes |
If your Key Result looks like a task, rewrite it as a metric.
OKR scoring
At the end of the quarter, score each KR from 0.0 to 1.0.
| Score | Meaning |
|---|---|
| 0.7–1.0 | Strong result |
| 0.4–0.7 | Partial — investigate what blocked full delivery |
| 0.0–0.4 | Missed — diagnose whether the target was wrong or the initiative failed |
A consistent score of 1.0 means targets are too easy. Google's guideline: 0.6–0.7 is healthy; it means you're setting ambitious goals that stretch the team without being delusional.
OKR cadence
| Level | Frequency | Owner |
|---|---|---|
| Company OKRs | Annual / Quarterly | CEO + leadership |
| Team OKRs | Quarterly | Team lead + PM |
| Mid-quarter check-in | Week 6 of 13 | PM |
| End-of-quarter scoring | Week 13 | Team |
OKRs vs. KPIs
| OKRs | KPIs | |
|---|---|---|
| Time horizon | Quarterly | Ongoing |
| Purpose | Set direction and measure progress toward it | Monitor health of existing business |
| Stability | Change each quarter | Persistent |
| Example | "Grow activation rate to 60% in Q2" | "Activation rate (always tracked)" |
KPIs are your health metrics. OKRs are where you want to move them.
Free templates for OKR
Frequently asked questions
How many OKRs should a team have per quarter?
2–3 objectives with 2–4 key results each. More than 3 objectives means you don't have real priorities — everything is urgent, which means nothing is. Teams that succeed with OKRs are ruthlessly focused.
Should OKRs be tied to compensation?
Most OKR practitioners, including John Doerr, recommend against it. When OKRs affect bonuses, teams set conservative targets to guarantee a high score instead of ambitious goals. Keep OKRs separate from performance management.
What's the difference between company OKRs and team OKRs?
Company OKRs set the direction for the organisation. Team OKRs should cascade from them — each team's objectives should connect to at least one company objective. If a team's OKRs don't connect to company goals, they'll be deprioritised when things get busy.
How long does it take for OKRs to work?
Most teams need 2–3 quarters to get the rhythm right. The first quarter is usually spent writing outputs instead of outcomes, over-committing, and not doing mid-quarter check-ins. By quarter 3, the team has calibrated target-setting and the format becomes natural.
Apply OKR to your real product data
PMRead ingests customer feedback, interviews, and Slack threads — and generates PRDs grounded in real evidence.
Related terms
RICE Scoring
A quantitative feature prioritization framework that scores each initiative by Reach, Impact, Confidence, and Effort — producing a single number to rank your roadmap.
North Star Metric
A single metric that best captures the core value your product delivers to customers — and that the whole company optimises toward.