OKR (Objectives and Key Results)

What is OKR (Objectives and Key Results)?

OKR stands for Objectives and Key Results. It's a goal-setting method made famous by Google and Intel, now common in Indian startups. The Objective is a qualitative, ambitious statement like 'Become the most loved payroll app for Indian SMEs'. The Key Results are 3-5 numeric outcomes that prove the objective was achieved, like 'Hit 5,000 paying customers' or 'Maintain NPS above 60'. OKRs are usually set quarterly and scored 0 to 1, where 0.7 is considered a good score because the goals are meant to stretch the team. Unlike KPIs, OKRs are public across the company so everyone sees what each team is committing to.

Example

Objective: Make payroll feel effortless. KR1: Cut average payroll-run time from 4 hours to 30 minutes. KR2: Reach 4.5 stars on Capterra. KR3: Reduce support tickets per customer by 40%.

How OKR (Objectives and Key Results) is used

Don't tie OKRs directly to compensation. The moment scores affect bonuses, people sandbag their goals to look good.

OKR (Objectives and Key Results) FAQs

What's the difference between OKR and KPI?

KPIs are ongoing health metrics (always tracked). OKRs are time-bound goals to push beyond business-as-usual. Use both.

Why is 0.7 a good OKR score?

OKRs are meant to be ambitious. Hitting 1.0 every time means goals were too easy. Scoring 0.6-0.8 is the target zone.

How many OKRs per team?

One to three objectives per team per quarter. More than that and focus disappears.