Definition
Objectives and Key Results (OKR) is a goal-setting framework that pairs a qualitative objective with a small set of measurable key results. It aligns teams and individuals around priorities, usually on a quarterly cycle, and gives managers a transparent way to track progress toward outcomes instead of activity.
Also known as: OKR, OKRs
How it works
An organization sets a few ambitious objectives, each describing what it wants to achieve in plain language. Under each objective sit two to five key results, which are specific, measurable outcomes that show whether the objective was met. Teams and individuals then write their own OKRs that connect to those above them, so priorities stay visible across the company.
Progress is reviewed on a regular cadence, often weekly check-ins and a formal scoring at the end of a quarter. Many teams treat partial attainment of stretch goals as healthy, which signals ambition rather than failure. OKRs are usually kept separate from compensation decisions so people feel safe setting bold targets. HR platforms often host OKRs alongside performance reviews and engagement data.
Example
A 200-person software firm sets the objective of improving new-hire ramp speed. Its key results are cutting average time to first project from 45 to 30 days, reaching 90 percent completion of onboarding tasks, and raising new-hire survey scores by one point.
How it differs from similar terms
Objectives and Key Results vs Total Rewards. OKRs define what people work toward, while total rewards defines what the employer provides in return. Linking OKR scores directly to pay can discourage ambitious goals.
Related terms and guides
Frequently asked questions
How are OKRs different from KPIs?
KPIs monitor the ongoing health of a process, such as monthly turnover, and usually have fixed targets. OKRs describe a time-bound change the organization wants to make and are deliberately ambitious. Teams often use both, with KPIs as the baseline and OKRs as the improvement priorities.
How many OKRs should a team have?
Most teams keep to a few objectives per cycle, each with two to five key results. Too many dilutes focus and makes weekly review impractical. The right number is whatever the team can realistically track and discuss, so start small and expand only if check-ins stay useful.