OKR

Definition

Objectives and Key Results (OKRs) is a goal-setting framework where each Objective is a qualitative aspiration and each Key Result is a quantitative measure of progress — typically 3–5 KRs per Objective, set quarterly or annually.

Andy Grove imported MBOs into Intel as iMBOs in the 1970s; John Doerr brought the framework to Google in 1999. The structure forces a discipline most companies lack: every aspiration gets a number attached, and every team's goals roll up to the company's. Done well, OKRs align hundreds of people on a few priorities. Done badly, they become annual paperwork.

The most common failure mode is treating KRs as tasks. 'Launch the new pricing page' is a task. 'Lift trial-to-paid conversion from 12% to 18%' is a Key Result. The first is binary; the second is the actual outcome. Tasks are how you might hit the KR — they're not the KR itself.

Origin

Andy Grove formalised the framework at Intel in the 1970s, building on Peter Drucker's Management By Objectives. John Doerr taught the framework at Google in 1999 ('Measure What Matters', 2018, became the canonical text).

How it works

Set 3–5 company-level Objectives for the quarter or year.
For each Objective, write 3–5 measurable Key Results.
Cascade: each team writes their own OKRs that ladder up to the company OKRs.
Score weekly or biweekly: 0.0 to 1.0 per KR.
Aim for 0.7 average — full 1.0 means the OKRs were too easy.
Review at end of quarter; reset for the next.

When to use it

Use when

In organisations with 20+ people who need explicit alignment.
When the strategy is shifting and priorities need to be reset.
After a funding round or major business change.

Skip when

In tiny teams (under 10) — verbal alignment is faster and cheaper.
When leadership won't commit to the OKRs themselves. Nothing kills OKRs faster than a CEO who ignores them.

Key metrics

OKR scoring (0.0–1.0 per KR; ~0.7 target).
% of teams with OKRs cascaded from company.
% of OKRs scored each cycle (review discipline).
Strategy-to-execution alignment — qualitative.

Examples

Q3 OKR: lift trial-to-paid from 12% to 18%. We hit 16% — scored 0.65.
Our OKRs are useless because half the team writes 'tasks I'll do' instead of 'outcomes I'll achieve'.
The CEO scoring her own OKRs publicly is what made ours work.

In practice at Makreate

Makreate works with clients whose marketing OKRs we contribute to directly. We don't impose OKRs — we ask 'what's the Key Result this work needs to move?' before scoping any engagement. Recent example: a SaaS client's Q1 OKR was 'lift inbound qualified pipeline by 40%.' Our SEO + content + outreach work needed to land 25% of that. We scoped the 12-week plan with that number as the target, reviewed weekly, and hit 31% by week 11.

See pricing →

Common mistakes

Writing tasks as Key Results. KRs are outcomes, not actions.
Setting too many OKRs. 3–5 per level is the ceiling.
Using OKRs for performance reviews. They become sandbagged. OKRs are a planning tool; comp is separate.
Not reviewing weekly. OKRs you don't track are wishlists.

Frequently asked

OKR vs KPI?

A KPI is a metric you track always. An OKR is a goal you've prioritised for this period. KPIs run perpetually; OKRs are time-bound.

How aggressive should KRs be?

Aim for 70% achievement. Hitting 100% means the KR was too easy; hitting 30% means it was unrealistic. The 70% target is what makes OKRs aspirational.

Quarterly or annual?

Both. Annual OKRs at the company level; quarterly OKRs at the team level. Quarterly only doesn't give time for big strategic bets.