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Understanding objectives and key results (okrs): definition & best practices

A goal-setting framework that defines ambitious objectives and the measurable key results needed to achieve them.

Objectives and key results (okrs)

OKRs (Objectives and Key Results) is a goal-setting framework used to define and track objectives and their outcomes. Popularized by Intel and later adopted by Google, OKRs help organizations align teams around ambitious goals while measuring progress through quantifiable results. The framework separates the inspiring "what" (objectives) from the measurable "how" (key results).

Why it matters

OKRs have become essential for product teams because they:

  • Create alignment: Everyone understands how their work contributes to company goals
  • Drive focus: Limited OKRs force prioritization of what truly matters
  • Enable autonomy: Teams know the destination but choose their own path
  • Encourage ambition: The framework explicitly supports stretch goals
  • Improve transparency: Progress is visible across the organization

    • Companies like Google, LinkedIn, Twitter, and Spotify credit OKRs with helping them scale while maintaining focus.

    The okr structure

    Objectives

    Objectives are qualitative, inspiring goals that describe what you want to achieve:

  • Ambitious: Objectives should stretch the team beyond comfortable targets
  • Qualitative: Describe the desired outcome in words, not numbers
  • Time-bound: Usually set for a quarter
  • Inspiring: Should motivate the team to achieve something meaningful

    • Example: "Become the go-to solution for product teams managing customer feedback"

    Key results

    Key Results are quantitative metrics that measure progress toward the objective:

  • Measurable: Must be trackable with specific numbers
  • Outcome-focused: Measure results, not activities
  • Challenging: Achieving 70% of key results is considered success
  • Limited: Typically 3-5 per objective

    • Example Key Results:

  • Increase monthly active users from 10,000 to 25,000
  • Achieve Net Promoter Score of 50+
  • Reach $100K monthly recurring revenue

    • How to write good okrs

    Writing objectives

    Good objectives are:

  • Action-oriented (start with verbs like "Launch," "Establish," "Transform")
  • Inspirational (make people excited to work toward them)
  • Clear (anyone should understand what success looks like)

    • Bad example: "Improve the product"

    Good example: "Deliver a product experience that users can't live without"

    Writing key results

    Good key results are:

  • Specific and unambiguous
  • Measurable with a clear target number
  • Achievable but challenging (aim for 70% completion)
  • Clearly tied to the objective

    • Bad example: "Get more users"

    Good example: "Increase weekly active users from 5,000 to 15,000"

    Okr cadence and rhythm

    Quarterly cycle

    Most organizations set OKRs quarterly:

  • Week 1: Draft OKRs and gather feedback
  • Week 2: Finalize and communicate OKRs
  • Weeks 3-11: Execute and track progress
  • Week 12-13: Score OKRs and prepare for next quarter

    • Regular check-ins

  • Weekly: Quick progress updates on key results
  • Monthly: Deeper review of obstacles and adjustments
  • Quarterly: Full retrospective and new OKR setting

    • Annual planning

    Quarterly OKRs should ladder up to annual objectives, which align with multi-year company strategy.

    Scoring okrs

    At the end of each cycle, score your key results:

  • 0.0-0.3: Failed to make real progress
  • 0.4-0.6: Made progress but fell short
  • 0.7-0.9: Achieved target (this is success!)
  • 1.0: Achieved 100% (goal might have been too easy)

    • Target average: 0.7. If teams consistently score 1.0, objectives aren't ambitious enough.

    Common okr mistakes

    Setting too many okrs

    More OKRs means less focus. Limit to 3-5 objectives with 3-5 key results each.

    Confusing tasks with key results

    Key results measure outcomes, not activities. "Launch new onboarding flow" is a task; "Increase 7-day retention from 40% to 55%" is a key result.

    Making okrs too easy

    If you're hitting 100% of your OKRs, you're not being ambitious enough. Aim for stretch goals.

    Setting and forgetting

    OKRs require regular check-ins and updates. Don't just set them at the start of the quarter and review at the end.

    Using okrs for performance reviews

    OKRs are for alignment and ambition, not individual evaluation. Tying compensation to OKRs discourages risk-taking.

    Okr examples for product teams

    Product launch okr

    Objective: Successfully launch our mobile app to drive user growth

    Key Results:

  • Achieve 10,000 app downloads in the first month
  • Reach 4.5+ star rating on app stores
  • Achieve 30% week-1 retention rate
  • Generate 500 pieces of user feedback through in-app prompts

    • User engagement okr

    Objective: Create a product experience that users love and return to daily

    Key Results:

  • Increase daily active users by 40%
  • Improve DAU/MAU ratio from 15% to 25%
  • Reduce time-to-value from 5 minutes to 2 minutes
  • Achieve NPS score of 50+

    • Revenue okr

    Objective: Establish a sustainable, growing revenue engine

    Key Results:

  • Grow MRR from $50K to $100K
  • Improve free-to-paid conversion from 3% to 5%
  • Reduce monthly churn from 5% to 3%
  • Increase average contract value by 20%

    • Okrs vs. kpis

    OKRs are aspirational goals that change each cycle:

  • Time-bound (quarterly)
  • Stretch targets (aim for 70%)
  • Drive transformation and focus

    • KPIs are ongoing metrics that measure business health:

  • Continuous tracking
  • Target is 100% achievement
  • Monitor operations and baseline performance

    • The two work together: KPIs identify areas needing improvement; OKRs drive focused effort to improve them.

    Implementing okrs with klero

    Klero supports OKR-driven product development by:

  • Connecting user feedback directly to objectives and key results
  • Tracking feature adoption to measure progress on engagement key results
  • Providing public roadmaps that communicate your OKR-aligned priorities
  • Aggregating feedback data to inform which objectives matter most

    • Feedback that drives growth

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