HR GLOSSARY · People development

OKR

Also known as: Objectives and Key Results, OKRs

OKRs (Objectives and Key Results) are a goal-setting framework where each objective (a qualitative ambition) is paired with 2–5 key results (measurable outcomes that prove the objective was achieved). Originated by Andy Grove at Intel in the 1970s, popularized by Google in the 2000s.

OKRs separate "what we want to be true" (the objective) from "how we will know we got there" (the key results). The framework forces teams to be specific: an objective without measurable key results is a wish list. The cadence is typically quarterly — each quarter, the company sets 3–5 objectives, teams set objectives that ladder up, individuals set objectives that ladder up to the team. Scoring at quarter-end measures how much of each key result was achieved (typically on a 0.0–1.0 scale).

Anatomy of an OKR

A well-formed OKR has one verb-driven objective and 2–5 measurable key results. The objective should be ambitious enough that landing all five key results at 1.0 feels unlikely — Google's convention treats 0.6–0.7 as a healthy score, with 1.0 signaling the objective was set too softly.

Objective: Make the first 90 days the best part of joining the company
KR1: Raise the average new-hire onboarding survey score from 3.6 to 4.3 out of 5
KR2: Cut the time from signed offer to first productive day from 15 to 8 working days
KR3: Have 90% of new hires finish every onboarding task by day 30
KR4: Bring first-year voluntary turnover down from 22% to 15%

OKRs vs KPIs

KPIs (Key Performance Indicators) track ongoing business health — metrics you watch every week regardless of what you're working on. OKRs target a specific shift over a specific window — what changes this quarter. A KPI lives forever; an OKR retires when its quarter ends. The two complement each other: KPIs tell you the steady state, OKRs tell you the bet.

Common failure modes

Sandbagging — setting KRs you know you can hit 100%. Defeats the framework.
Output as outcome — counting features shipped instead of outcomes achieved
Cascading too rigidly — every IC has 4 OKRs that all roll up. Bureaucracy at scale.
Linking to comp — OKRs become political, sandbagging accelerates
Quarter-long cycles for fast-moving teams — startups often run 6-week cycles instead

Frequently asked questions

What does OKR stand for?

OKR stands for Objectives and Key Results. The objective is the qualitative ambition; the key results are the measurable outcomes that prove the objective was achieved.

How many OKRs should a team have?

3–5 objectives per team per quarter, each with 2–5 key results. More than that dilutes focus; fewer usually means the team isn't ambitious enough.

What is a good OKR score?

In Google's convention, 0.6–0.7 is healthy. A consistent 1.0 means the goals were too soft; a consistent 0.3 means they were unrealistic. The point is calibration over time, not the absolute score.

Are OKRs the same as KPIs?

No. KPIs track ongoing health (always-on metrics). OKRs target a specific shift over a specific window (typically quarterly). KPIs tell you steady state; OKRs tell you the bet you're making this quarter.

Should OKRs affect bonuses?

No — the Google playbook explicitly decouples OKRs from compensation. Linking them creates sandbagging incentives and destroys the framework's utility for ambitious goal-setting.