Objectives and Key Results (OKRs)

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Jan Neudecker
• 04.11.25 •
2 min. reading time

Definition

OKRs, short for Objectives and Key Results, are a goal-setting and alignment framework that helps teams focus on Outcomes rather than Outputs. The objective describes where you want to go, and the key results describe how you will measure success.

Context

OKRs help agile teams connect their work to meaningful outcomes. By setting ambitious but clear objectives and pairing them with measurable key results, teams can stay aligned on what matters most and avoid falling into the trap of simply delivering outputs.

Description

OKRs emphasize focus, alignment, and learning. Each OKR has two parts:

Objective: A qualitative, inspiring statement describing the desired outcome.
Key Results: 2 to 5 (recommended range) quantitative measures showing progress toward the Objective.

OKRs are typically set for a fixed time, often quarterly, and reviewed regularly. They are not a to-do list or a collection of outputs. Instead, they encourage teams to aim high, experiment, and adapt based on results.

Good Objectives and Key Results help teams:

  • Align around a shared purpose
  • Prioritize effectively by saying no to work that does not support the Objective
  • Balance ambition and learning by setting key results that can be measured objectively.
  • Inspect and adapt whether their work has been meaningful towards achieving the objective or making meaningful progress towards it.

Example

Objective: Delight customers by improving the checkout experience.
Key Results:

  • Reduce checkout abandonment from 40 percent to 25 percent
  • Increase customer satisfaction with the checkout flow from 3.8 to 4.5 on a scale from 1-5 as measured via surveys
  • Reduce average checkout time by 30 percent and increase revenue by 10%

This OKR makes it clear that the team is focused on the outcome of improving the customer experience, not just releasing more features.

Common Misunderstandings

A frequent misunderstanding is that OKRs and specifically the key results (KRs) are the same as tasks or items in a backlog. In reality, OKRs describe the outcome you want to create, not the outputs. Every single Product Backlog Item should be a hypothesis towards achieving the OKRs set for that period.

Another misconception is that OKRs can be used for performance reviews. OKRs are designed for focus, alignment, and learning. Linking them to compensation or ratings encourages sandbagging and reduces honest reflection.

Want to Learn More?

Read the Outcome article to anchor your objectives in the change you want to see. Explore the Product Goal article to align OKRs with a clear product direction, then use both to craft Objectives and Key Results that drive meaningful progress.