OKR is an acronym that stands for "objectives and key results." An OKR consists of two elements:

1. __Objectives__: The OKR framework starts with a goal. Companies can strive for ambitious goals like gaining the most market capital in their industry. They can also set goals that are more immediately achievable, like growing sales by two percent in the next quarter.
2. __Key results__: Key results are metrics that companies can use to track their goal fulfillment. Good OKRs feature frequent check-ins to review these key results and see if team members are on track to meet the objectives they have set.

Intel CEO Andy Grove developed the OKR methodology in the 1960s, while John Doerr’s 2018 book, *Measure What Matters*, introduced the concept to wide audiences. Today, many businesses use OKRs to set company strategy, declare company objectives, and set up a performance management framework to track those objectives.

Organizations and individuals use OKRs to create a measurable goal-setting framework. Setting OKRs lets a person or an organization name their goals and identify the metrics that will show whether they are meeting those goals. There is more than one type of OKR.

- __Company OKRs__: A company-level OKR sets holistic company goals and establishes a template for measuring progress toward those goals. Company-level OKRs might set business goals like a specific market capitalization or a listing on the New York Stock Exchange.
- __Team OKRs__: A team-level OKR involves a group of people within a larger organization. Perhaps a team within a larger company—such as a marketing department—wishes to set stretch goals for growth. They can use the OKR process to work toward those goals without necessarily involving people from unrelated departments. This stands in contrast to top-level OKRs, which almost always involve the whole company.
- __Personal OKRs__: An individual can set their own OKR for personal growth. They do so by naming a personal objective along with the ways they will measure the success of that objective. Managers may also propose OKRs to the employees that report to them. Together, a manager and an associate can use the OKR strategy to name their objectives and set up a series of performance reviews to track whether those objectives have been met.
OKRs represent management by objectives. A CEO, team leader, manager, or individual can manage forward progress by declaring an objective, naming the metrics they will use to track progress toward that objective, and then following those metrics over time. 

1. __Top-down OKR__: A top-down OKR originates with upper management and requires buy-in from lower-level associates. For instance, the CEO of a new music streaming service may declare that they want to convert 100,000 paid users in the next year. They would further establish the key results they need to make that happen. Those key results could include hitting a certain number of conversions per quarter or executing certain marketing tactics to entice new customers.
2. __Bottom-up OKR__: A bottom-up OKR begins at the grassroots of an organization. It requires trust, buy-in, and flexibility from senior management as they seek to merge employee engagement with broader business goals. For instance, a company's members may set the objective of having an equity stake in the company. The CEO or board of directors could agree with that objective and name that a key result is going public on the stock market, at which point its employees can exercise valuable stock options. In this example, both management and employees reap the benefits of OKRs.
3. __Personal OKR__: In a personal OKR, you set your own objective along with time-bound metrics to track that objective. For instance, you may wish to shave 10 minutes off your best marathon time. You can set trackable checkpoints along the way toward that objective by vowing to run four marathons per year and setting goal times for each of those races.
OKRs are holistic frameworks that involve an objective and a measuring stick (called "key results") in one package. Key results are similar to another measurement tool called a key performance indicator, or KPI. These two terms are not quite synonymous, however.

- __Key results are flexible__. A key result is one part of an OKR. It represents the way that an organization or individual will measure whether they are meeting their stated objectives. Key results can be quantifiable (with specific numeric values), or they can be qualitative (based more on concepts than specific numbers). As such, the definition of a key result is broader than the definition of a KPI.
- __Key performance indicators are quantitative__. KPIs are always quantitative, which means they are measured numerically. Examples of KPIs include market valuation, number of subscribers, and gross revenue before taxes. A KPI can fit within an OKR framework because it is inherently narrower in scope than an OKR.
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OKR stands for “objectives and key results,” and it represents a goal-setting methodology used by businesses. OKRs help companies identify new ambitions and track progress as they fulfill those ambitions.


OKR stands for “objectives and key results,” and it represents a goal-setting methodology used by businesses. OKRs help companies identify new ambitions and track progress as they fulfill those ambitions.


OKRs Explained: 3 Examples of Objectives and Key Results

OKR is an acronym that stands for &quot;objectives and key results.&quot; An OKR consists of two elements:<ol class="mc-m-4"><li class="mc-my-4"> 1. Objectives: The OKR framework starts with a goal. Companies can strive for ambitious goals like gaining the most market capital in their industry. They can also set goals that are more immediately achievable, like growing sales by two percent in the next quarter. </li><li class="mc-my-4"> 2. Key results: Key results are metrics that companies can use to track their goal fulfillment. Good OKRs feature frequent check-ins to review these key results and see if team members are on track to meet the objectives they have set. </li></ol>Intel CEO Andy Grove developed the OKR methodology in the 1960s, while John Doerr’s 2018 book, Measure What Matters, introduced the concept to wide audiences. Today, many businesses use OKRs to set company strategy, declare company objectives, and set up a performance management framework to track those objectives.

What Are OKRs? 

Organizations and individuals use OKRs to create a measurable goal-setting framework. Setting OKRs lets a person or an organization name their goals and identify the metrics that will show whether they are meeting those goals. There is more than one type of OKR.<ul class="mc-m-4 list-styled"><li class="">Company OKRs: A company-level OKR sets holistic company goals and establishes a template for measuring progress toward those goals. Company-level OKRs might set business goals like a specific market capitalization or a listing on the New York Stock Exchange. </li><li class="">Team OKRs: A team-level OKR involves a group of people within a larger organization. Perhaps a team within a larger company—such as a marketing department—wishes to set stretch goals for growth. They can use the OKR process to work toward those goals without necessarily involving people from unrelated departments. This stands in contrast to top-level OKRs, which almost always involve the whole company. </li><li class="">Personal OKRs: An individual can set their own OKR for personal growth. They do so by naming a personal objective along with the ways they will measure the success of that objective. Managers may also propose OKRs to the employees that report to them. Together, a manager and an associate can use the OKR strategy to name their objectives and set up a series of performance reviews to track whether those objectives have been met. </li></ul>

How Are OKRs Used?

OKRs represent management by objectives. A CEO, team leader, manager, or individual can manage forward progress by declaring an objective, naming the metrics they will use to track progress toward that objective, and then following those metrics over time. <ol class="mc-m-4"><li class="mc-my-4"> 1. Top-down OKR: A top-down OKR originates with upper management and requires buy-in from lower-level associates. For instance, the CEO of a new music streaming service may declare that they want to convert 100,000 paid users in the next year. They would further establish the key results they need to make that happen. Those key results could include hitting a certain number of conversions per quarter or executing certain marketing tactics to entice new customers. </li><li class="mc-my-4"> 2. Bottom-up OKR: A bottom-up OKR begins at the grassroots of an organization. It requires trust, buy-in, and flexibility from senior management as they seek to merge employee engagement with broader business goals. For instance, a company&#39;s members may set the objective of having an equity stake in the company. The CEO or board of directors could agree with that objective and name that a key result is going public on the stock market, at which point its employees can exercise valuable stock options. In this example, both management and employees reap the benefits of OKRs. </li><li class="mc-my-4"> 3. Personal OKR: In a personal OKR, you set your own objective along with time-bound metrics to track that objective. For instance, you may wish to shave 10 minutes off your best marathon time. You can set trackable checkpoints along the way toward that objective by vowing to run four marathons per year and setting goal times for each of those races. </li></ol>

3 Examples of OKRs

OKRs are holistic frameworks that involve an objective and a measuring stick (called &quot;key results&quot;) in one package. Key results are similar to another measurement tool called a key performance indicator, or KPI. These two terms are not quite synonymous, however.<ul class="mc-m-4 list-styled"><li class="">Key results are flexible. A key result is one part of an OKR. It represents the way that an organization or individual will measure whether they are meeting their stated objectives. Key results can be quantifiable (with specific numeric values), or they can be qualitative (based more on concepts than specific numbers). As such, the definition of a key result is broader than the definition of a KPI. </li><li class="">Key performance indicators are quantitative. KPIs are always quantitative, which means they are measured numerically. Examples of KPIs include market valuation, number of subscribers, and gross revenue before taxes. A KPI can fit within an OKR framework because it is inherently narrower in scope than an OKR. </li></ul>

OKRs vs. KPIs: What’s the Difference?

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OKR stands for “objectives and key results,” and it represents a goal-setting methodology used by businesses. OKRs help companies identify new ambitions and track progress as they fulfill those ambitions.