OKR, Objectives and Key Results, is a goal-setting framework pairing one qualitative, ambitious Objective with three to five quantitative Key Results that define exactly what achieving that objective would look like, often set alongside a broader performance appraisal cycle.

Where it came from, and a worked example

The framework traces back to Peter Drucker’s Management by Objectives from the 1950s, adapted by Andy Grove at Intel in the 1970s and documented in his book “High Output Management.” John Doerr, who learned the method at Intel, later introduced it to Google’s founders in 1999 and popularized the “OKR” name more broadly through his book “Measure What Matters.” A worked example: Objective, “create a world-class customer onboarding experience.” Key Results: increase onboarding satisfaction from 80% to 95% by end of quarter, reduce time to first value from 14 days to 5 days, and achieve a 90% completion rate on the onboarding checklist. OKRs are typically set quarterly and meant to stretch performance, distinct from routine KPI tracking, which monitors ongoing role health rather than time-boxed, ambitious targets.

Frequently asked questions

Is an OKR the same as a KPI?

No. OKRs are a time-boxed, stretch goal-setting framework. KPIs are ongoing health metrics that a Key Result can use as its measurement, but aren’t inherently a stretch target.

How many Objectives should a team have at once?

Most guidance suggests keeping it to a small handful, spreading focus across too many objectives at once tends to dilute the whole point of the framework.

Are OKRs tied directly to compensation?

Often deliberately not, many companies keep OKRs separate from pay decisions specifically to encourage ambitious targets without the fear of missing a stretch goal costing someone their increment.

See how OKRs differ from SMART goals as a goal-setting approach.