OKR (Objectives and Key Results) is a goal-setting framework that helps companies and teams:
- Identify which goals truly matter
- Align the entire organization in one direction
- Measure outcomes instead of activities
OKR works like a strategic compass for the organization.
1. Objective – The Goal
An Objective should be:
- Inspiring
- Clear
- Qualitative
- Ambitious and focused on meaningful improvement
Example Objective:
Increase customer satisfaction and strengthen brand trust.
This sets the direction without using numbers. It describes what we want to achieve.
2. Key Results – The Measurable Outcomes
Key Results are the metrics that show whether the Objective has been reached.
A Key Result must be:
- Numerical
- Specific
- Measurable
- Time-bound
Example Key Results:
KR1: Increase customer satisfaction (CSAT) from 82% to 90%.
KR2: Improve issue-resolution time by raising the 24-hour closure rate from 50% to 80%.
KR3: Collect at least 300 positive online reviews.
3. Structure of an OKR
A complete OKR includes:
- Objective: Where are we going?
- Key Results: What measurable outcomes will prove that we arrived?
Key Characteristics of OKRs
- They measure outcomes, not tasks.
(For example, not “launch a campaign,” but “increase sales by 20%.”) - They increase transparency by making goals visible to everyone.
- They focus on what truly matters — usually 3 to 5 priorities.
- Key Results should be challenging but achievable.
The typical target completion rate is around 70%.
OKR Timeline
- Annual OKRs: Strategic direction
- Quarterly OKRs: Operational focus
How Many OKRs Should You Have?
- Company level: About 3 main Objectives
- Departments: 2–4 Key Results per Objective
- Individual employees: 1–2 Objectives
OKRs are about clarity and focus, not volume.
Why OKRs Are Considered Highly Effective
OKRs help organizations:
- Align teams around shared goals
- Remove unnecessary work
- Increase ownership and accountability
- Create meaningful and measurable progress
This framework is widely used by companies such as Google, Intel, Netflix, LinkedIn, and Amazon.