OKR stands for Objectives and Key Results. It's a goal management framework that helps companies execute their strategy effectively.

The OKR methodology gained popularity after being used at Google and soon spread to other companies in Silicon Valley and beyond. Today, many organizations—like LinkedIn, Airbnb, Spotify, Amazon, and more—use OKRs, but it’s not limited to tech startups. Industries worldwide, including finance, media, and enterprise services, use OKRs to align their teams and drive meaningful progress.

The OKR Structure

The OKR formula, inspired by John Doerr, is:

Objective — A clear and memorable description of what you want to achieve. It should be aspirational and engaging—something that inspires action, motivates your team, and provides a clear direction.

Key Results (KR) — Metrics that measure progress toward the Objective. For each Objective, you should have 2-5 Key Results that define success. KRs are about tracking the most important metrics that signify progress, not a detailed plan of every action you’ll take.

Key Results are scored 0.0 to 1.0 (or 0% to 100%). The Objective progress is the average of the MKRs (measurable key results) progress.

OKR Example

Launching a product would require a lot of tasks and activities, however, in the example above, the team decided to use the OKR framework only measure the key results -— signups, conversion rates, and article reviews.

Notice that Tasks or Initiatives—specific steps that influence OKRs—aren’t included in the OKR itself. OKRs focus on where you want to go, and tasks are the how you get there.

OKR Principles: Keep It Simple, Aim High, and Stay Transparent

The OKR framework embodies several key principles that make it an effective approach for goal-setting and driving impact:

1. Ambitious, Impactful Goals

Objectives should challenge your team—what we call "moonshots." It’s about setting targets that push the boundaries of what’s possible. A great OKR encourages growth, which means a typical completion rate of 60-70% is ideal. If you’re always hitting 100%, your goals may not be challenging enough.

2. Measurable goals

Each Key Result should be measurable and tied to tangible milestones. If it’s not quantifiable, it can’t effectively guide your progress or tell you if you've succeeded.

3. Transparent process

One of the most powerful aspects of OKRs is transparency. When everyone’s Objectives are visible across the company, it builds trust, fosters collaboration, and ensures alignment.

4. Bidirectional approach

OKRs work best when they blend top-down strategic direction with bottom-up input. While leadership sets the broad company Objectives, departments and teams should shape their own goals, aligned with the overall vision. This ensures ownership at every level and helps align personal motivation with company impact. Best practice is to have at least 60% be bottom-up.

OKR Process: Aligned, But Not Complicated

OKRs are generally set at three levels:

• Company-Level OKRs: Big-picture goals that drive the company forward.

• Team or Department-Level OKRs: Goals that support the broader company objectives and make progress toward them.

• Individual-Level OKRs: Personal goals that align with team and company direction.

Each level should focus on 2-4 clear Objectives, keeping things simple and manageable. The key is alignment without overcomplication—trust your team members to adapt and sync as needed, rather than trying to micromanage every connection.

The OKR Cycle: Staying Agile and Focused

OKRs are usually broken down into two main types:

• Strategic OKRs: Typically set annually at the company and department level, outlining the broader goals that guide the organization.

• Tactical OKRs: Set quarterly for teams or departments to drive the day-to-day progress toward those strategic Objectives.

Alongside these, monthly or weekly check-ins help ensure that progress stays on track and teams are aligned. This approach maintains flexibility—enabling your teams to adapt quickly to changing circumstances and adjust goals if necessary.

Simplicity and Impact: Why OKRs Work

The power of OKRs lies in their simplicity and focus on impact. By defining clear Objectives and measurable Key Results, your teams know what they’re aiming for and how success is defined. It’s not about creating exhaustive lists of tasks or adding complexity—it’s about providing clarity, alignment, and a clear sense of purpose.

In today’s rapidly evolving workplace, OKRs offer a lightweight yet powerful way to align your teams, drive meaningful progress, and focus on the work that truly makes a difference. When implemented thoughtfully, they can foster a culture of accountability, growth, and collaboration—enabling everyone to see how their contributions drive the organization forward.

Ready to start using OKRs effectively? Remember, keep it simple, aim high, and focus on what matters most.