OKR Framework

In 1980 Intel was losing the market for 16-bit microprocessors to Motorola. Andy Grove's response, Operation Crush, had one objective and a handful of measurable results, including a target of 2,000 "design wins" with customers in a single year. Intel beat it. The goal-setting method behind the campaign, objectives and key results, later went from Intel to Google and from there to thousands of other organisations.

What the OKR framework is

OKR stands for Objectives and Key Results. Andy Grove developed it at Intel in the 1970s, building on Peter Drucker's management by objectives. John Doerr, who had worked under Grove, introduced it to Google's founders in 1999 and later described it in Measure What Matters (2018).

• Objective: what you want to achieve, in words. Qualitative, ambitious, and clear enough that people remember it.
• Key results: two to five measurable outcomes that show whether you got there. Each has a number and a deadline.

Grove's test for a key result was simple: at the end of the period, you can say without argument whether it was met. Tasks and projects belong in the plan below the OKR, not in it.

OKR example: from tasks to outcomes

One-page model visual

The one-page visual

Use this visual as a quick reference. The card in the deck adds the questions and the steps to run the model on your next real question.

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How to draft OKRs in 30 minutes with the card

1. Minutes 0 to 5: agree the period and the level. Usually one quarter, for one team.
2. Minutes 5 to 12: write one to three objectives. Each should pass the question: if we achieve this, will it matter?
3. Minutes 12 to 22: add key results. Two to five per objective, each with a start value, a target and a date.
4. Minutes 22 to 27: run the task test. For each KR, ask "could we do this and nothing improves?" If yes, it is a task. Rewrite it as an outcome.
5. Minutes 27 to 30: set the check-in rhythm. A short weekly update on confidence for each KR, and a score at the end of the quarter.

The card front explains what OKRs are for; the back has the steps and an example, so a team can draft its first set in one meeting.

Common OKR mistakes

• Key results that are tasks. The most common mistake by far, as in the first draft above.
• Too many OKRs. Twelve objectives means no priorities. Three is plenty for a team.
• Linking OKRs to bonuses. People then set safe targets. Google treats a score of about 0.7 on stretch goals as a good result.
• Set and forget. OKRs written in January and opened again in March have not been used.

Good OKRs start from a clear view of where you stand, which is what a SWOT analysis gives you. When OKRs keep failing despite good drafting, the cause often sits in structure or culture, and the McKinsey 7S Framework helps find it.

OKR FAQ

• What is the difference between OKRs and KPIs?

  KPIs measure the ongoing health of a business, such as monthly revenue or churn. OKRs set a change you want to make in a period. A KPI can become a key result when you want to move it.

• How many OKRs should a team have?

  One to three objectives, each with two to five key results. More than that spreads attention too thin.

• How are OKRs scored?

  Often from 0 to 1 for each key result. For ambitious OKRs, Google considers around 0.7 a success; for committed OKRs, anything below 1 needs an explanation.

Write outcomes, then plan the work

The OKR card puts the structure and the steps on one card, and the task test above takes a minute, so the next planning session produces outcomes instead of to-do lists. The Miro board helps a team draft together, and the Google Sheets template tracks progress on each key result through the quarter. It is one of 50 models in the MBA Tools deck.