What Are OKRs? A Complete Guide to Objectives and Key Results
Last verified: February 2026
The Short Answer
OKRs (Objectives and Key Results) are a goal-setting framework that helps organizations define what they want to achieve (Objectives) and how they'll measure success (Key Results). Originally developed at Intel by Andy Grove and later adopted by Google, OKRs are now used by thousands of companies from startups to Fortune 500 enterprises.
How OKRs Work
An OKR has two components:
Objective — A clear, qualitative statement of what you want to achieve. It should be inspiring, actionable, and time-bound (typically one quarter).
Key Results — 2-5 specific, measurable outcomes that indicate whether the Objective was achieved. Key Results must be quantifiable — you should be able to objectively determine whether each was met.
Example OKR
Objective: Become the most trusted brand in B2B marketing software
- KR1: Increase Net Promoter Score from 35 to 55
- KR2: Achieve 95% customer retention rate (currently 87%)
- KR3: Win "Leader" designation in at least 2 analyst reports
The History of OKRs
| Year | Milestone |
|---|---|
| 1954 | Peter Drucker introduces Management by Objectives (MBOs) |
| 1970s | Andy Grove at Intel refines MBOs into OKRs |
| 1999 | John Doerr introduces OKRs to Google (at 40 employees) |
| 2013 | Google shares OKR methodology publicly |
| 2018 | John Doerr publishes Measure What Matters |
| 2020s | OKRs become standard practice across tech and beyond |
Core Principles of OKRs
1. Focus
Limit to 3-5 OKRs per team per quarter. If everything is a priority, nothing is.
2. Alignment
OKRs cascade from company to team level, ensuring everyone's work connects to shared goals. About 60% should be bottom-up (team-proposed), 40% top-down.
3. Transparency
OKRs are visible across the entire organization. Anyone can see what any team is working toward. This creates accountability and reduces duplicated effort.
4. Stretch
OKRs are intentionally ambitious. Achieving 70% of a stretch goal is considered strong performance. If you consistently hit 100%, your goals aren't ambitious enough.
5. Decoupled from Compensation
OKRs should NOT be tied to bonuses or performance reviews. Tying goals to pay incentivizes sandbagging — setting easy targets to guarantee payouts.
Who Uses OKRs?
OKRs are used across industries and company sizes:
- Tech: Google, Intel, LinkedIn, Twitter, Spotify, Netflix
- Healthcare: Humana, Cerner
- Retail: Walmart, Target
- Finance: ING, Nubank
- Nonprofits: Gates Foundation, Code for America
- Startups: Widely adopted as the default goal-setting framework
The OKR Cycle
A typical quarterly OKR cycle:
- Week 1-2: Draft OKRs based on company strategy and team priorities
- Week 2-3: Align across teams, resolve dependencies, finalize
- Weeks 4-11: Execute, with weekly or biweekly check-ins
- Week 12-13: Score OKRs (0.0-1.0), reflect on learnings, plan next quarter
OKRs vs. Other Frameworks
- OKRs vs. KPIs: KPIs monitor health metrics; OKRs drive change. Use both.
- OKRs vs. SMART Goals: SMART goals focus on achievable targets; OKRs encourage stretch.
- OKRs vs. MBOs: OKRs are transparent, quarterly, and decoupled from pay. MBOs are private, annual, and tied to bonuses.
Getting Started with OKRs
- Start small — one team, one quarter, 3 OKRs
- Get executive buy-in — OKRs need leadership commitment
- Train the team — everyone should understand the framework
- Choose a cadence — quarterly is standard, with weekly check-ins
- Review and iterate — the first quarter is a learning experience
How Krezzo Helps
Krezzo provides an end-to-end OKR platform covering the full cycle: drafting, alignment, tracking, check-ins, and scoring. The platform is designed to make OKRs simple for teams of any size, with built-in best practices to avoid common pitfalls.
Sources
- Doerr, John. Measure What Matters. Penguin, 2018.
- Grove, Andrew. High Output Management. Vintage, 1983.
- re:Work by Google. "Guide: Set Goals with OKRs."
- krezzo.com