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OKR (Objectives and Key Results)

In a nutshell: OKR (Objectives and Key Results) is an agile goal-management framework that links ambitious qualitative goals (Objectives) with measurable outcomes (Key Results). Developed at Intel and popularised by Google, OKR helps organisations create focus, alignment, and transparency in strategy execution.

What is OKR? – Definition and origins

OKR stands for Objectives and Key Results and is a framework for goal setting and strategy execution. Developed by Andy Grove at Intel in the 1970s and introduced at Google in 1999 by John Doerr, OKR is now used by companies worldwide—from startups to DAX-listed corporations.

The core principle is strikingly simple: Objectives describe WHAT is to be achieved (qualitative, inspiring). Key Results define HOW success is measured (quantitative, measurable). Together, they create clarity about direction and progress.

In the context of innovation management, OKR is particularly valuable: it links the long-term innovation strategy with concrete, measurable results in short cycles. This makes OKR the ideal bridge between strategy and agile execution.

How OKRs are structured

Objective (O): A qualitative, inspiring goal that provides direction. It answers the question: “Where do we want to go?” A good Objective is ambitious (stretch goal), time-bound (typically a quarter), easy for everyone to understand, and motivating.

Key Results (KR): 2–5 measurable results per Objective that quantify progress. They answer: “How do we know we have achieved the Objective?” Good Key Results are specific, measurable, achievable (but ambitious), and time-bound.

Example of an innovation OKR:

Objective: Successfully validate our business model innovation in the market

  • KR1: Run 3 MVP tests with at least 20 pilot customers each
  • KR2: Increase the conversion rate from pilot to paying customers to >15%
  • KR3: Achieve a Net Promoter Score of >50 among pilot participants
  • KR4: Prepare a decision paper for go/no-go and present it to the leadership team

The OKR cycle

OKR follows a recurring rhythm—typically quarterly:

  1. OKR Planning (Week 1): Define Objectives and Key Results for the coming quarter. Top-down guidance meets bottom-up proposals—the result is a shared set of OKRs for the company, teams, and, if applicable, individuals.
  2. Weekly check-ins: Weekly brief updates on the Key Results—are we on track? Where are the obstacles? Ideally as part of the team stand-up.
  3. OKR Review (last week): Evaluate results: Which Key Results were achieved? What did we learn? Scoring is typically on a scale from 0.0–1.0.
  4. OKR Retrospective: Reflect on the OKR process itself: What can we improve in the OKR process? (not to be confused with the content review).

The golden rules of OKR

  • Less is more: A maximum of 3–5 Objectives per level (company, team), each with 2–5 Key Results. Focus beats breadth.
  • Stretch goals: OKRs should be ambitious—60–70% achievement is considered a success. 100% means the goal was not ambitious enough.
  • No link to bonuses: OKRs are NOT tied to variable compensation—otherwise conservative rather than ambitious goals will be set.
  • Transparency: All OKRs are visible to everyone—from the CEO to the intern. This creates alignment and mutual understanding.
  • Bidirectional: Around 60% of OKRs should come bottom-up from teams, and 40% should be derived top-down from the strategy.
  • Outcomes instead of outputs: Key Results measure results (outcomes), not activities (outputs). Not “write 10 blog posts”, but “increase organic traffic by 30%”.

OKR as an innovation engine

OKR is a powerful tool for systematically driving innovation:

  • Make innovation goals visible: Dedicated innovation OKRs ensure that innovation is not pushed aside by day-to-day business.
  • Steer innovation processes: Key Results for each phase—from idea generation to scaling.
  • Measure product–market fit: Define clear metrics that show the validation progress of a new business model.
  • Create alignment: All teams understand how their contribution supports the innovation strategy.
  • Foster a learning culture: Regular OKR reviews institutionalise reflective learning—the foundation for a strong innovation culture.

The 5 most common OKR mistakes

  1. Too many OKRs: 10 Objectives with 5 Key Results each = 50 metrics. Impossible to track. Maximum 3–5 Objectives.
  2. Key Results as to-do lists: “Run a workshop” is a task, not a Key Result. Key Results measure results, not activities.
  3. Lack of ambition: If all OKRs are achieved 100%, they were not ambitious enough. 70% is the sweet spot.
  4. Set and forget: Set OKRs once per quarter and then never look at them again. Without weekly check-ins, OKRs lose their impact.
  5. Bonus linkage: Linking OKRs to variable compensation destroys a culture of ambition—employees then set conservative goals to secure the bonus.

OKR for Austrian SMEs

OKR scales extremely well—even for small teams:

Mini OKR for SMEs (5–20 employees):

  • 1 company OKR: 2–3 Objectives with 3 Key Results each—at quarterly level.
  • Team OKRs optional: Useful from around 15 people; below that, the company level is sufficient.
  • Monthly instead of weekly check-ins: Sufficient for small teams and reduces overhead.
  • Quarterly rhythm: Start with a pilot quarter; after 2–3 cycles, the framework is established.

Introducing OKR in 3 steps:

  1. Half-day OKR workshop with the entire team: translate strategic priorities into OKRs.
  2. First pilot quarter with monthly check-ins and coaching by external innovation consultants.
  3. Review, lessons learned, adjustments—and then move into the regular cadence.

Introduce OKR in your organisation

We support you in introducing OKR—from translating strategy into OKRs, through the first cycles, to embedding it in day-to-day operations.

Book an OKR workshop now →

Frequently asked questions about OKR

What is the difference between OKR and KPI?

KPIs (Key Performance Indicators) measure the ongoing performance of existing processes—e.g. revenue, customer satisfaction, on-time delivery. They show the organisation’s health. OKRs, by contrast, are future-oriented and describe desired change—they drive progress and innovation. Both systems complement each other: KPIs as health metrics, OKRs as change metrics.

From what company size does OKR make sense?

OKR is worthwhile from as few as 3–5 people. Even for solopreneurs, the framework can help bring focus and measurability to their strategy. Overhead only increases in larger organisations (50+ employees), when alignment across many teams is required. For SMEs, a lean variant with 2–3 company OKRs and optional team OKRs is recommended.

How long does it take to introduce OKR?

The first OKR cycle can be set up within 1–2 weeks. In practice, it takes 3–4 cycles (i.e. 3–4 quarters) for OKR to be truly embedded as a leadership tool. Typical learning curve: In the first quarter, OKRs are often too vague or too operational. In the second quarter, they become more precise. From the third quarter onwards, most teams feel the real added value.

Should OKRs be set at an individual level?

This is debated. Google uses individual OKRs, but many modern OKR coaches advise against them—especially in SMEs. The reason: individual OKRs can encourage silo thinking and weaken team dynamics. Recommendation for SMEs: set OKRs at company and team level. Individual goals can be managed additionally through performance reviews, but should not be mixed into the OKR system.

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