The OKR methodology: Your handy explainer

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Are you looking for a simpler and more effective way to achieve your business goals? Look no further than Objectives and Key Results (OKRs) - the goal-setting strategy that has helped industry giants like Google, LinkedIn, Netflix, and many others. When implemented correctly, OKRs promote transparency, results-driven practices, and team accountability.

Our goal is to demystify this framework and help you master the art of OKRs. In this post, you'll gain insights into understanding the methodology, implementing it effectively, and achieving success with your OKRs.

What are OKRs?

OKRs focus on defining ambitious objectives and quantifiable key results to track progress. Since being popularised in the tech industry, OKRs have become an increasingly widespread framework used by organisations of all sizes and sectors to drive growth and alignment. 

To understand the power of OKRs, it helps to break down the key components:


Objectives are the overarching and qualitative goals that an organisation or a team wants to achieve. They should be significant, inspiring, and challenging enough to push the team to aim higher and achieve true breakthroughs, rather than incremental progress. Setting inspiring objectives is crucial for motivation and expanding limits.

Key Results 

Key results are metrics that can be measured to show the achievement of objectives. To be effective, KRs should be specific, time-bound, and challenging yet attainable targets that measure incremental progress towards the broader goal. Tracking quantifiable key results helps to bring transparency to goal progression at the individual, team, and organisational levels. This accountability helps to motivate and drive performance.

The origins and evolution of OKRs

OKRs originated from a goal framework called MBO (Management by Objectives), which was created by management expert Peter Drucker in the 1950s. MBO focused on setting company objectives and measuring results, and this early approach later gave rise to OKRs.

In the 1970s, Intel CEO Andy Grove adapted MBO to create a new system that emphasised setting quantified objectives and rigorously tracking key results through weekly reviews. This revised methodology formed the basis of modern-day OKRs.

It wasn't until John Doerr, a former Intel executive, introduced OKRs to Google in 1999 that the framework truly took off in popularity and impact. Under Doerr's guidance, Google embraced OKRs early on, which helped fuel their incredible growth. Companies across Silicon Valley were quick to follow suit.

Today, OKRs are most commonly used in technology companies, but they have expanded across industries such as media, healthcare, finance, and education, among others. The flexible, goal-oriented nature of OKRs appeals to companies pursuing innovation and exponential growth. When implemented effectively, OKRs can drive organisations to new heights.

The strengths of OKRs as a goal-setting methodology

OKRs have become increasingly popular due to several key strengths they offer:

Ambitious and transformative: OKRs encourage teams to set highly ambitious goals that push them to think outside the box and achieve objectives through innovation and breakthrough thinking.

Alignment and transparency: OKRs promote alignment across the organisation by linking individual, team and company goals. Their transparency via quantified KRs enables collective ownership.

Accountability and results-focused: The concrete key results and regular tracking of OKRs ensure accountability and a focus on outcomes.

Adaptable: OKRs remain flexible enough to evolve if needed to steer through uncertainty, while still maintaining a commitment to ambitious objectives.

OKRs provide a structured yet adaptable goal-setting framework focused on ambitious outcomes. The methodology's track record of driving exponential growth explains its status as one of the most popular and proven approaches for realising a company's highest potential.

The modern OKRs framework: Setting, tracking, and achieving goals

Today, the OKRs methodology has evolved into a robust framework centred around goal-setting, transparent tracking, and regular progress reviews. 

Here is an overview of the key steps:

1. Identify OKR champions

To implement OKRs successfully, it is important to appoint team members who will be responsible for overseeing the process. These champions will ensure that everyone understands their objectives, key results, and the value of their contributions in achieving broader goals. 

2. Set objectives

When setting objectives, it is recommended to define qualitative and ambitious goals that are forward-looking, aligned with organisational priorities, and inspire innovation. To achieve this, conduct market analysis, leverage frameworks such as the Product Lifecycle, and determine company-wide priorities. 

3. List key results

To transform qualitative objectives into measurable targets, it is important to translate them into quantitative key results (KRs). Effective KRs should follow the "Improve X from Y to Z by Date" formula, tracking metric-based progress. 

4. Implement initiatives

To support KRs, list specific weekly initiatives and projects that will drive results. These action items should be tied directly to owners accountable for pushing progress forward. Keep initiatives focused and high-impact. 

5. Track progress and outcomes

To effectively track and review progress, leverage tools like Tability to automatically input metric updates and review what's working versus what's not towards achieving the goals. Use weekly or monthly reviews to discuss progress, realign as needed, and drive continual improvement.

The beauty of the OKRs framework lies in its cadence of setting ambitious goals, making them quantifiably measurable, supporting through weekly plans, and transparently reviewing progress through open communication and data. This cycle culminating in weekly and quarterly check-ins ensures alignment, accountability, and ultimately, successful outcomes.

Bringing OKRs to life: Goal-setting examples across departments

Examining examples of the OKRs methodology can provide clarity on how objectives and key results come to fruition when setting goals in the real world. Here are some samples of effective OKRs across marketing, sales, HR, and other critical business functions:

Marketing OKRs example

Objective: Double website traffic within 6 months  

KR1: Publish 20 search-optimised blog articles per month  

KR2: Increase organic search visibility for 30 target keywords

KR3: Grow social media followers from 40K to 80K 

Sales OKRs example

Objective: Increase new customer acquisitions by 30% this quarter

KR1: Convert 10% of free trial users to paying customers 

KR2: Generate 500 new leads through content syndication 

KR3: Shorten sales cycle from 60 days to 30 days

HR OKRs example

Objective: Boost employee retention over the next year

KR1: Improve employee Net Promoter Score from 7 to 9

KR2: Launch quarterly company-wide feedback surveys

KR3: Increase employee referral bonus program participation by 15%

Product OKRs example  

Objective: Reduce software errors by half 

KR1: Establish automated testing for all new features

KR2: Implement daily bug review meetings  

KR3: Decrease reported user errors by 20% month-over-month

Finance OKRs example

Objective: Cut operational expenses by 20% 

KR1: Renegotiate 3 major SaaS contracts 

KR2: Launch employee spend visibility reporting  

KR3: Insource 2 previously outsourced functions  

The best OKRs align with company goals while remaining adaptable. These examples illustrate how objectives spanning growth, customer satisfaction, quality, and profitability can break down into quantitative, measured key results tied to specific initiatives across departments. Companies can customise OKR frameworks to optimise operations.

For the complete collection of OKR examples, visit our examples library.

Achieve your goals with Tability

If you're new to OKRs, you might feel inspired but overwhelmed about implementing it in your organisation. Fortunately, you can make the process of next-level goal-setting simple and seamless by using the right tool. Tability is an intuitive platform that makes it easy for companies to set, track, and achieve organisation-wide and team-specific OKRs. 

Get started for free and leverage OKRs to unlock your teams' potential.

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Monika Gudova

Content Writer and Editor

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