What are OKRs?
OKR stands for Objectives and Key Results. It is a goal-setting method in which a team states what it wants to achieve (the objective) and how progress will be measured (the key results). Objectives are meant to be clear and motivating, while key results are specific and measurable. The method is widely associated with Intel, where Andy Grove developed it, and was later popularised by John Doerr and used by many technology companies.
How the OKR method works
- Objective: a qualitative statement of what you want to achieve in a set period.
- Key results: usually two to five measurable outcomes that show whether the objective has been reached.
- Cycle: OKRs are commonly set for a quarter or a year, with regular check-ins.
- Visibility: goals are usually shared across the organisation so teams can see how their work connects.
Many teams score key results at the end of the cycle and use the review to plan the next one. Some organisations treat very ambitious goals as acceptable if only partly reached, while others expect full delivery. Teams should decide which approach they use and say so.
OKRs for business development
Business development covers activities that create growth, such as finding partners, entering new markets, building the sales pipeline and developing new revenue sources. OKRs suit this work because progress can be hard to see, and clear measures help.
Example
Objective: Become a trusted supplier in the regional healthcare market.
Possible key results:
- Sign five new partnership agreements by the end of the quarter
- Grow qualified leads from the sector from 20 to 50 per month
- Reach a 25 percent proposal-to-meeting conversion rate
These numbers are illustrations only. Real targets should come from your own data. Terms such as leads and conversion rate are explained in internet marketing terms.
Another example
Objective: Prepare to launch in a new country.
Possible key results:
- Complete a market assessment and present it to leadership by week four
- Identify three potential local partners
- Define pricing and compliance requirements
Cross-border plans like this are discussed in international business strategy.
OKR versus KPI
| OKR | KPI | |
|---|---|---|
| Purpose | Drive change or improvement | Monitor ongoing health |
| Nature | Time-bound and ambitious | Continuous and steady |
| Typical question | What do we want to achieve? | How are we performing? |
| Review | Each cycle | Regularly, often ongoing |
When to use which: use OKRs when you want to push toward a particular change, and KPIs to keep watch on routine performance. Many organisations use both, and a KPI can become a key result when you want to improve it.
OKRs and strategy
OKRs do not replace strategy. They translate it into goals teams can act on. A company with a clear direction can cascade it into objectives for each team, while the day-to-day actions that deliver key results are the kind of work described in examples of business tactics. OKRs can also help make technology priorities visible, as covered in IT alignment with business goals.
Are there types of OKRs?
Commonly mentioned types include:
- Committed OKRs: goals the team expects to deliver in full
- Aspirational (or stretch) OKRs: ambitious goals where partial progress is still valuable
- Learning OKRs: goals focused on testing an idea or gaining knowledge
Names vary between sources.
How to get started
- Start from strategy. Know the company’s priorities first.
- Draft a few objectives. Fewer is better; a long list dilutes focus.
- Add measurable key results. Each should show clearly whether you have made progress.
- Hold regular check-ins. Weekly or fortnightly updates help catch problems early.
- Review at the end of the cycle. Note what you learned and adjust.
Common pitfalls
- Too many objectives
- Key results that are tasks rather than outcomes
- Setting OKRs and then not reviewing them
- Linking OKRs directly to pay, which can discourage ambitious goals
- Copying another company’s goals instead of writing your own
Is Google still using OKRs?
Google is widely reported to have used OKRs from its early years. Whether and how it uses them today is something to check in current sources rather than assume.
Key takeaways
OKRs combine a clear objective with measurable key results. In business development they help a team focus on growth outcomes, and they work best when tied to a clear strategy and reviewed regularly.