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OKR (objectives and key results)

Also called: OKRs, objectives and key results

A goal-setting method that pairs a qualitative objective with a few quantitative key results showing whether it has been reached, usually over a quarter.

OKR stands for objectives and key results. An objective is a qualitative statement of what you want to achieve ("make CatChow the easiest way to keep a cat fed"). Key results are two to four measurable signals that show whether you got there ("subscription share from 18% to 30%", "80% of repeat orders placed in under 60 seconds"). The method took shape at Intel and spread through Google to much of the tech industry.

On a roadmap, OKRs provide the why and the definition of done. The objective explains why a group of themes matters; key results tell everyone when a theme has done its job, regardless of whether a particular feature shipped. A few rules keep them useful:

  • Every roadmap theme links to at least one objective. A theme without one deserves a hard look.
  • Few objectives. Fewer than five per team or product at a time; more means no focus.
  • Key results are outcomes, not tasks. "Launch the loyalty program" is a task. "Repeat purchase rate from 35% to 45%" is a key result.
  • Baseline and target. Without a starting value, a key result can't be judged.

Practice has matured since OKRs became fashionable. Common failure modes are output-style key results, dozens of OKRs cascaded mechanically from the top, and tying them to bonuses, which encourages easy targets. Many teams now separate committed OKRs (expected to be met) from aspirational ones (stretch goals), and keep OKRs quarterly while the roadmap looks further ahead.

Example

CatChow's product OKR for the second quarter:

Objective: Make it effortless for regular customers to keep their cat fed.

  • KR1: subscription share of revenue from 18% to 24%.
  • KR2: 90-day repeat purchase rate from 35% to 40%.
  • KR3: "where is my order?" tickets from 420 to 280 a month.

Linked roadmap themes: Effortless reorder → KR1 and KR2; Know when food arrives → KR3. A proposal for gift cards doesn't move any key result this quarter, so it goes to the idea list rather than onto the roadmap.

Common mistakes

  • Tasks dressed as key results. "Ship X" measures output; ask what X should change.
  • Too many OKRs. Five objectives with five key results each is a to-do list, not focus.
  • No baseline. "Increase retention" without a starting number can't be graded.
  • Set and forget. Check progress mid-quarter and adjust the roadmap, not only at the end.
  • Tying OKRs to pay. Teams start choosing easy targets. Keep OKRs a tool for learning and focus.