OKR (Objectives & Key Results) is a lightweight goal-management framework that defines what an organization wants to achieve in a given period and how it will know it has achieved it. Developed by Andy Grove at Intel, it was popularized by Google and the broader tech industry.
An OKR has two parts:
- Objective: a qualitative, inspiring, memorable statement. "What do we want to achieve?"
- Key Results: 2-4 measurable outcomes that prove the objective was achieved. "How will we know?"
An OKR example
Objective: Turn candidate experience into a competitive advantage.
KR1: Reduce average time-to-hire from 42 to 28 days.
KR2: Increase candidate NPS from +15 to +40.
KR3: Keep the share of candidates who receive feedback within 5 business days above 95%.
The objective inspires; the key results move the conversation from opinion to numbers.
OKR vs. KPI
KPI is a continuously monitored health indicator (a pulse). OKR is a time-bound goal to reach in a period (a target sprint). A KPI can stay unchanged for years; OKRs are refreshed every quarter. In a mature system, OKR key results are often the target level of the related KPIs.
6 principles for writing OKRs
- Few OKRs: 2-3 objectives per team per quarter, each with 2-4 KRs, is enough. Focus does not come from a long list.
- Top-down + bottom-up: Company OKRs set the frame; teams write their own. Purely top-down OKRs are never owned.
- Ambitious but realistic: Google's classic rule — hitting ~70% of a stretch OKR is good; 100% often means the OKR was too easy.
- Measurable KRs: "Communicate better" is not a KR. "Increase monthly team meeting attendance above 85%" is.
- Transparency: every OKR in the company should be visible. When everyone can see what others are doing, prioritization gets easier.
- Do not tie to bonus: OKRs are a goal-management tool. Tying bonuses directly to OKR scores encourages people to write easy goals.
Most common OKR implementation mistakes
- Renaming a KPI list as OKRs: changing the template does not change the method.
- Not touching OKRs until quarter-end: OKRs die without a weekly/biweekly rhythm.
- Writing task lists: "Run meeting X" is not a KR, it is an activity.
- No owner: every OKR needs an owner; an ownerless OKR does not move.
OKR is not a spreadsheet — it is a conversation discipline. Written quarterly, reviewed monthly, connected weekly with "what will I move this week?". Once that rhythm exists, goal management stops being an Excel file and becomes a real management tool.
To assess your OKR / performance management maturity, IC Consulting's HR Check-Up evaluates your goal-setting, feedback and review practices in the Performance Management category.
