OKRs (Objectives & Key Results)
Andy Grove, Intel (1970s); popularized by John Doerr at Google
Goal-setting framework that connects aspirational objectives to measurable results. Not a metrics framework per se, but the most common system for operationalizing metrics into team goals.
How it works
OKRs separate aspiration from measurement. Objectives are qualitative and ambitious—they describe the outcome you want. Key Results are quantitative and specific—they tell you whether you got there. The magic is in the constraint: 3–5 Objectives per cycle, each with 2–4 Key Results. This forces prioritization. OKRs cascade from company to team to individual, creating a visible thread from strategy to daily work. They’re not a metrics framework—they’re the system that turns metrics into goals.
Components
Objectives
Qualitative, inspirational goals that set direction
Key Results (Acquisition)
Measurable outcomes for user growth
Key Results (Engagement)
Measurable outcomes for product usage
Key Results (Revenue)
Measurable outcomes for monetization
How to implement
- Start with 3–5 company-level Objectives for the quarter. These should be ambitious but achievable.
- For each Objective, define 2–4 Key Results that are measurable and time-bound. Use existing metrics from AARRR, HEART, or your North Star inputs.
- Have teams create their own OKRs that align upward. Teams should propose, not be assigned.
- Score at end of quarter: 0.0–1.0. Target 0.6–0.7 on average. Consistently hitting 1.0 means you’re not being ambitious enough.
- Separate OKRs from compensation. The moment OKRs affect pay, people sandbag their targets.
In practice
Has used OKRs since their founding. Larry Page credits the system with helping Google achieve "10× growth" by forcing teams to set goals that seemed unreasonable—and then hitting 60–70% of them, which was still transformative.
Intel
Andy Grove invented OKRs at Intel in the 1970s to keep the fast-moving chip business aligned. The system helped Intel navigate the transition from memory chips to microprocessors by making strategic shifts visible at every level.
Spotify
Uses OKRs at the squad and tribe level, paired with their North Star Metric. Each squad’s OKRs trace back to an input metric of the company North Star, creating clear line-of-sight from daily work to company strategy.
Best for
Organizations of any size that need to translate strategy into measurable execution. Works as a wrapper around any metrics framework—pair with AARRR or HEART to populate Key Results.
When to avoid
Very early-stage startups where goals change weekly (quarterly cadence is too slow). Also problematic when leadership treats OKRs as top-down mandates rather than collaborative goal-setting—that kills the ownership that makes OKRs work.
Limitations
OKRs are a goal system, not a measurement system. Without a metrics framework underneath, teams often pick arbitrary Key Results. Quarterly cadence can also create perverse incentives to hit short-term targets.