What is OKR (Objectives, Key Results)?

30 July 2021 | 3 Minute
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What is OKR (Objectives, Key Results)?

Resource utilization is critical for businesses of any size to plan and achieve their objectives. OKR stands for "Targets and Key Results," and it allows you to determine the company's long-term goals as well as the key results that will help you achieve them. In a nutshell, OKR establishes future goals and measures them with Key Results.

What is OKR?

OKR is a collaborative goal-setting tool that businesses use to define objectives. OKR provides a standard framework for employees and departments to implement the company's strategies. OKR ensures that all team members and managers work together toward a common goal. Furthermore, OKR allows you to track your progress toward the company, team, and personal goals using measurable outcomes.

The Objectives and Key Outcomes that both give the OKR its name and underpin it are considered key constructs. These structures can be summarized as follows:

  • Objectives: Inspiring, practical, and time-bound initiatives that will assist the organization in achieving its overall plans and objectives. These objectives contain a quantifiable, measurable component that is intended to propel the company in the right direction.
  • Key Results: Refers to the actionable steps to achieve the goal. Key results are the criteria that determine the results with which the targets will be realized. These results are evaluated as quantitative, specific and measurable sub-targets determined to achieve the goals.


How is OKR Created?

The firm, personnel, and company culture should all be considered while determining OKRs. Company and team objectives should always be aligned. This helps to keep everyone in the firm focused on the same goal. OKR kinds are separated into three categories: corporate, department (team), and employee. For each stage, two to four objectives are created.

Company OKRs for the company's strategies, tactics, and deficiencies are determined by senior managers. Since these goals are related to all departments and employees, internal harmony must be ensured. Department OKRs are usually set by the department (team) manager or leader. Included in the process of setting the goals, the employees of the department express their views on the goals. Employee OKRs, which represent the duties of employees in the company or department, are usually set by department managers.

On a company and department level, OKRs are set for annual or quarterly durations. OKRs are normally only set for quarterly intervals at the employee level. Checks are delivered on a monthly or weekly basis to track progress against business, department, or employee goals. As a result, when employee and department strategies aren't progressing, it's easy to shift course or increase OKRs.

What are the basic characteristics of OKR? 

The qualities of OKR set it apart from other application approaches. These features emphasize departmental and staff collaboration, as well as productivity and employee engagement. The following are OKR's basic characteristics:

  • Ambitious Goals: Goals should be slightly beyond team competencies. Ambitious goals open the door to new perspectives, strategies, and solutions. However, the targets should not really be too far away, a certain balance needs to be achieved. Otherwise, the performance and motivation of the employees may decrease.
  • Measurable Objectives: Objectives are tangible and measurable by their essential results, regardless of how qualitative they are. As a result, the ability to track progress toward goals with measurable outcomes is gained.
  • Transparent Process: The majority of OKR operations and results are visible to employees at all levels in the company. In this way, it can be determined whether the objectives between the departments are progressing in harmony and possible problems or confusions can be prevented from the beginning.
  • Two-Way Approach: Both a top-down and bottom-up technique is used to determine OKRs. During this process, each department and its employees establish their own OKRs based on the company's strategic OKR. Departments and personnel establish their own contributions in accordance with business strategies in this way.

What are the Benefits of Determining OKR?

The use of OKR, which stands out with its features, brings with it many advantages. Prominent among these advantages are:

Focus: Targets are set based on personnel and departments in OKR, with the most important targets being highlighted and the number of targets being minimized. Employees will be able to more easily determine their concentration this way.

Cohesion: With the use of OKR, the cooperation between different departments and their employees is improved, productivity and motivation are increased by producing solutions to mutual disagreements.

Loyalty: The loyalty to the product, service, and company is increased by defining difficult-to-reach goals with OKR, pushing the limitations of the employees who are part of these goals, and focusing on the future.

Monitoring: With OKR, the progress in the process towards the company or department targets is presented with quantitative and measurable data. Thus, the improvement decision for key solutions on the way to reach the goal can be taken appropriately and correctly.


The OKR system can help you figure out what your company's goals should be and how to get there. With Sorwe, you can quickly build and install an OKR system that meets your company's requirements. You can reach out to us for further information on the OKR system.


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