Mastering the Art of Goal Setting with OKR

Goal setting is an integral part of any organisation's strategy for success. One method that has recently gained popularity is the OKR methodology.
You can also read this post in

Goal setting is an integral part of any organisation’s strategy for success. One method that has recently gained popularity is the OKR methodology. An acronym for Objectives and Key Results, OKR is an innovative approach to goal setting that is experimental, data-driven and focuses on value beyond mere deliveries and profits. It’s an organic method that encourages growth and nurtures a culture of continuous learning and strategic thinking in the workplace.

Overview of OKR

OKR, or Objectives and Key Results, is a goal-setting system that aligns and engages employees around measurable targets. It’s a simple tool that creates a rhythm of alignment and engagement around quantifiable and time-bound objectives. The OKR methodology has been adopted by numerous organisations, including tech giants like Google and Intel, to foster a culture of collaboration, self-improvement, and continuous learning.

“OKR is a simple, fast-cadence process that engages each team’s perspective and creativity.”OKR is not just for tech companies. Traditional businesses like Walmart, Target, ING Bank, etc., have also embraced this methodology. The core philosophy of OKR is to have ambitious goals, and the key to achieving these goals is the alignment of every team member’s efforts towards these shared objectives.

Understanding OKR: The Basics

The OKR methodology was developed by Andy Grove at Intel and later popularised by venture capitalist John Doerr, who introduced it to Google. It is a simple yet robust framework that consists of two main components: Objectives and Key Results.

Objectives are qualitative descriptions of what you want to achieve. They should be short, inspirational, and engaging. An Objective should motivate and challenge the team.

Key Results, on the other hand, are a set of metrics that measure your progress towards the Objective. For each Objective, you should have a set of 2 to 5 Key Results. They have to be quantitative and measurable.

“If it does not have a number, it is not a Key Result.” – Marissa Mayer, a former Google’s Vice President.An example of an Objective might be “Create an Awesome Customer Experience”. The Key Results for this Objective could be:

  1. Decrease Average Customer Support Response Time from X to Y
  2. Increase Customer Retention Rate from X to Y
  3. Improve Customer Satisfaction Score (CSAT) from X to Y

Uniqueness of OKR

OKR is not a rigid framework, but rather, it provides a flexible approach to goal setting. There are some core concepts that define the uniqueness of the OKR methodology.

Agile Goals

Unlike traditional planning methods, OKR adopts an agile approach. It uses shorter goal cycles, allowing companies to swiftly adapt and respond to change.


OKR is straightforward and easy to understand. The process of setting goals using OKR is lightweight and significantly reduces the time spent on setting goals.


OKRs are public within the organisation, fostering a culture of transparency. Everyone has access to everyone else’s OKRs, which helps create organisational alignment.

Nested Cadences

OKR acknowledges that strategic and tactical objectives have different tempos. Therefore, it adopts different rhythms:

  1. A strategic cadence for high-level, longer-term OKRs for the company (usually annual).
  2. A tactical cadence with shorter-term OKRs for the departments and teams (usually quarterly).
  3. An operational cadence for tracking OKR results and initiatives (usually weekly).

Bidirectional Goal Setting

OKR uses a market-based approach that is both bottom-up and top-down. The company sets the strategic OKRs, and each team drafts their tactical OKRs aligning with its strategy. Typically around 60% of the OKRs are set bottom-up in agreement with the managers, improving engagement and understanding of the strategy.

Ambitious Goals

OKR targets bold, ambitious goals. The philosophy behind OKR is that if the company is always reaching 100% of its goals, they are too easy. Ambitious goals are known as stretch goals; usually, only 60-70% of them should be achieved on average.

Decoupling Rewards

It’s crucial to separate OKRs from compensation and promotions. Employees need to know they won’t lose money if they set ambitious goals. OKR is a goal-setting framework, not an employee evaluation tool.

Implementing OKR

Adopting OKR is a journey, not a single event. It’s a cultural transformation that doesn’t happen overnight. By implementing a well thought-out strategy, it is feasible to adjust the dynamics of the company within a few months, promoting team alignment and engagement.

Common Mistakes & Tips for Writing Good OKRs

When implementing OKRs, there are common mistakes to avoid and tips to follow for writing good OKRs.

Common Mistakes

  1. Using OKR as a task list.
  2. Setting too many OKRs.
  3. Not aligning your OKRs.
  4. “Set it and forget it.”

Tips for Writing Good OKRs

For Objectives:

  • They should be simple, short and easy to memorise.
  • They should not be boring.

For Key Results:

  • Separate metrics from initiatives.
  • Set a few of them. Usually between 2 and 5 per Objective.

With the OKR methodology, organisations can set ambitious goals, measure progress, and foster a culture of transparency and continuous learning. It’s a simple, flexible, and powerful tool for driving growth and success in the modern business landscape.


Related Blog Post

Agile Mindset & Culture – Leadership

Navigating Leadership Challenges in SAFe® Scaled Agile Framework Adoption In the quest for organisational agility, the Scaled Agile Framework (SAFe®) stands out as a beacon of promise. Yet, the journey…


Which Competencies Should an Agile Coach Have?

In Agile transformations, the role of an Agile coach is often misunderstood. Many focus on processes and frameworks, neglecting the human aspects such as trust, relationships, culture, and psychodynamics. This post explores the key competencies an Agile coach should possess, emphasising the importance of acting more like psychologists, anthropologists, or sociologists rather than engineers. By balancing knowledge of Agile frameworks with an understanding of human dynamics, Agile coaches can empower individuals and teams to take ownership of their Agile journey and ensure sustainable, meaningful transformations.

Agile mishap #3: The Agile Bubble

The Agile community has turned into a self-absorbing and populistic system of people who think they know better than the rest of the world. Is this what we want to be?

Related Training

Related Resources

How to Run a Retrospective

Running an effective retrospective is crucial for continuous improvement in Agile teams. If you’ve ever felt that your team’s retrospectives are lacking direction or failing to produce actionable insights, you’re…

What is Organisational Culture?

Organisational culture encompasses the shared values, beliefs, and practices that define how individuals within an organization interact and work together. It reflects the company's identity, influences decision-making, and shapes employee behaviour.

Five different bridges

Five Ways to Build Consensus

Discover five effective strategies to build consensus and foster collaboration within your team or organization.

More Posts

Let's Talk About
How We Can Help!

Are you enjoying our articles? Even better you can talk to us in person! Get in touch with us so we can schedule something!