How to set strategic goals using OKRs (Objectives and Key Results)

OKRs have two parts: Objective (qualitative, inspirational goal) and Key Results (3-5 quantitative measures of success). Example: Objective - "Become the go-to platform for remote teams." Key Results - "Increase DAU from 5K to 15K," "Achieve NPS of 50+," "Expand to 10 new countries." Objectives inspire; Key Results measure. Both are necessary. Numbers without inspiration is soulless; inspiration without metrics is fantasy.

Start at top: leadership sets 3-5 company OKRs for quarter or year. Then departments create OKRs that support company goals. Teams/individuals align their OKRs to department goals. Cascade ensures: everyone rowing same direction, individual work connects to company strategy, no teams optimizing local metrics at expense of company goals. Alignment beats autonomy without direction.

OKRs should stretch team beyond comfort zone. Target: 70% achievement is success. 100% means you sandbagged; 30% means you're delusional. Ambitious goals: motivate peak performance, force creative problem-solving, signal what really matters. Safe goals produce safe results. If hitting all OKRs every time, you're not setting stretch goals. Comfort zone is enemy of growth.

Bad Key Results: "Improve customer experience," "Launch great product." Good Key Results: "Reduce support ticket resolution time from 24h to 4h," "Ship product to 1,000 beta users with >4.0 average rating." Measurable means: clear finish line, no debate about achievement, progress trackable. Vague Key Results create arguments about whether you succeeded. Numbers remove ambiguity.

More isn't better. Too many OKRs: diffuse attention, nothing gets priority, team feels overwhelmed. Three to five forces: ruthless prioritization, clear trade-offs, realistic achievement. If everything is priority, nothing is. Saying yes to fifth OKR means saying no to depth on first four. Focus compounds; diffusion dilutes. Choose battles carefully.

Check-ins prevent: OKRs forgotten until quarter-end, problems festering unaddressed, teams working on outdated priorities. Weekly review: progress on each Key Result, blockers preventing progress, tactical adjustments needed. Don't change OKRs mid-quarter unless fundamental assumptions break. Tactics flex; goals hold steady. Consistency enables focus; constant goal-shifting creates chaos.

At quarter/year end: score each Key Result (0-1.0 scale), analyze what worked and what didn't, identify systemic issues preventing achievement, celebrate wins even if incomplete. Grading isn't punishment—it's learning. Low scores reveal: unrealistic goals, under-resourced teams, or external factors. Retrospective turns OKRs into improvement engine, not just measurement exercise.

OKRs are stretch goals; people shouldn't be punished for missing them. Using OKRs in performance reviews: incentivizes sandbagging, kills ambition, creates political gaming. Separate conversations: OKRs for ambitious team goals, performance reviews for individual contribution and growth. When compensation ties to OKRs, people set safe goals. Decouple to preserve honesty and ambition.