The Ultimate Guide to OKRs (Objectives and Key Results)
Every organisation struggles with the same challenge: how to focus on what really matters, align teams around common goals, and measure whether progress is actually happening. OKRs — Objectives and Key Results — offer a proven framework to solve this. This guide answers the 50 most common questions leaders and teams ask about OKRs, structured into a clear journey: from understanding the basics to implementation, best practices, and real-world applications.
Chapter 1: Understanding the Basics
What are OKRs?
OKRs stand for Objectives and Key Results. The Objective describes what you want to achieve, while the Key Results define how you will measure progress. Objectives are qualitative and directional; Key Results are quantitative and measurable.
Why should organisations use OKRs?
OKRs help organisations focus on what matters, align teams, and shift attention from outputs (what we do) to outcomes (the impact we create). This improves strategy execution, engagement, and accountability.
Who invented OKRs?
OKRs were pioneered by Andy Grove at Intel in the 1970s and popularised by John Doerr, who introduced them to Google in 1999. Today, they are used worldwide across startups, corporates, and nonprofits.
How do OKRs differ from KPIs?
KPIs measure ongoing performance, while OKRs set ambitious change goals. KPIs monitor the health of the business, while OKRs push for breakthroughs.
What is the difference between Objectives and Key Results?
Objectives describe what to achieve — qualitative and inspirational. Key Results define how success is measured — quantitative, specific, and time-bound.
Chapter 2: Principles and Philosophy
Why are OKRs ambitious?
OKRs should be stretch goals that challenge teams beyond their comfort zone. Success is often defined as achieving 60–80% of Key Results, not 100%.
What is the difference between committed and aspirational OKRs?
Committed OKRs must be achieved (e.g. compliance metrics). Aspirational OKRs are stretch goals designed to inspire innovation. Organisations often balance both.
What are moonshot and roofshot OKRs?
Moonshots are bold, high-risk goals with transformative potential. Roofshots are more realistic but still challenging. A healthy OKR system often includes a mix.
Why should OKRs not be tied to compensation?
Tying OKRs directly to bonuses encourages risk‑aversion. Teams may sandbag by setting easy targets. OKRs work best when they drive learning and ambition, not pay negotiations.
How do OKRs support innovation?
By encouraging bold, measurable goals, OKRs create a safe space to experiment and take calculated risks, fostering innovation across teams.
Chapter 3: Structuring OKRs
How many Objectives should a team have?
No more than 3–5 per cycle. Too many dilutes focus; too few may leave gaps.
How many Key Results should an Objective have?
2–4. Enough to capture impact but still manageable.
What makes a good Objective?
Qualitative, directional, and inspiring. It should answer: “What do we want to achieve?”
What makes a good Key Result?
Quantitative, specific, and measurable. It answers: “How will we know we are successful?”
What is the difference between outcomes and outputs?
Outputs are deliverables (e.g. “launch campaign”), while outcomes are impacts (e.g. “increase market share by 5%”). Key Results should measure outcomes.
Chapter 4: The OKR Cycle
What is the OKR cycle?
The repeating rhythm of setting, tracking, and reviewing OKRs, typically quarterly.
How often should OKRs be set?
Quarterly at team level, with annual company-level OKRs for strategic direction.
How should OKRs be tracked?
Weekly or bi‑weekly check-ins. Teams update progress as percentages or confidence scores.
What are confidence scores in OKRs?
A 1–10 scale indicating how confident a team is about achieving a Key Result. Helps spot risks early.
What is an OKR retrospective?
At the end of a cycle, teams reflect on results, challenges, and improvements for the next cycle.
Can OKRs be changed mid-cycle?
Ideally, no. But in fast-moving contexts, adjustments may be necessary. Transparency is key.
Chapter 5: Implementation in Organisations
Who should set OKRs?
A hybrid approach: leadership defines company-wide OKRs, while teams create their own aligned ones.
How do you cascade OKRs?
Top-level Objectives are broken down into departmental or team-level OKRs. The goal is alignment, not rigid hierarchy.
Should every employee have personal OKRs?
Not always. Team-level OKRs often work better. Personal OKRs can be useful for leaders or autonomous roles.
What is the role of leadership in OKRs?
Leaders set the strategic direction, ensure alignment, and model good OKR practices.
What is the role of an OKR Champion?
An OKR Champion coaches teams, runs workshops, and ensures consistency in OKR practices.
How do OKRs work in small companies?
They provide focus and prevent teams from being overwhelmed with tasks.
How do OKRs work in large organisations?
They ensure cross-team alignment, reduce silos, and connect departments to a shared strategy.
Chapter 6: Running OKRs in Practice
How do you run an OKR planning workshop?
Review strategy, brainstorm Objectives, draft Key Results, prioritise, and align across teams.
What is the role of check-ins?
Short, regular sessions to review progress, discuss blockers, and stay aligned.
What is the role of CFRs (Conversations, Feedback, Recognition)?
CFRs complement OKRs by ensuring goals are supported with dialogue and motivation.
How transparent should OKRs be?
Company-wide transparency is best practice. Everyone should see team OKRs to improve alignment.
What happens if OKRs are not achieved?
That’s normal. The goal is progress and learning. If 100% is achieved consistently, ambition is too low.
How long does OKR adoption take?
Usually 2–4 cycles (6–12 months) to embed into company culture.
Chapter 7: Common Pitfalls and Mistakes
What are common mistakes with OKRs?
Too many Objectives, writing tasks instead of outcomes, tying OKRs to bonuses, neglecting check-ins, and treating OKRs as static documents.
How do you prioritise OKRs?
Focus on the few Objectives that create the biggest impact on strategy.
How do OKRs relate to MBOs (Management by Objectives)?
MBOs are annual, rigid, and tied to pay. OKRs are dynamic, quarterly, and encourage ambition.
How do OKRs connect to company strategy?
They act as a bridge between long-term vision and short-term execution.
Chapter 8: Practical OKR Examples
OKRs for Customer Success
Objective: Delight customers with proactive support. Key Results: (1) Increase satisfaction score from 70% → 85%, (2) Reduce response time from 24h → 8h, (3) Retain 95% of key accounts.
OKRs for Sales
Objective: Accelerate revenue growth in Q3. Key Results: (1) Close €5M in new business, (2) Increase average deal size from €40k → €60k, (3) Achieve 90% quota attainment.
OKRs for Product Teams
Objective: Launch a mobile app customers love. Key Results: (1) 20,000 active users in first quarter, (2) 4.5‑star app rating, (3) Crash rate <1%.
Chapter 9: Tools and Technology
What are OKR tools?
Dedicated platforms like WorkBoard, Perdoo, Ally.io, Gtmhub, and Weekdone. Tools help track, visualise, and align OKRs, though many teams start with spreadsheets.
How do OKRs support agile teams?
Agile measures outputs (sprints, features delivered), while OKRs measure outcomes (value delivered). Together they ensure speed and relevance.
Chapter 10: Beyond Performance
What are the cultural benefits of OKRs?
OKRs create transparency, accountability, and shared purpose. They empower teams, reduce silos, and build engagement.
What are the benefits beyond performance?
OKRs foster learning, encourage ambition, and drive innovation. They help teams not just do work faster but ensure they are working on the right things.
How do you get started with OKRs?
Start small. Pilot with one team for one quarter. Learn, adapt, and scale gradually.
Conclusion
OKRs are not a silver bullet, but when applied with discipline, they become a powerful framework for focus, alignment, and execution. They bring strategy to life, help organisations learn, and inspire people to aim higher. Whether you are a startup founder, a corporate leader, or a team manager, OKRs provide the compass to navigate complexity and achieve meaningful outcomes.