Last updated on | FAQs, Strategic Alignment

OKR Framework – The Ultimate Guide For Digital Product Leaders

by Luís Gonçalves
okr framework

okr The OKR Framework is a well-liked framework for goal-setting and management that aids in the implementation of a sound plan by organizations. Your comprehension of the Objectives and Key Results framework will improve after reading this article!

okr scorecard

OKRs are designed to make it easier for every employee of the organization, from key stakeholders and leaders to team members, to understand the company’s goals by providing a set of specific, clear, and quantifiable actions.

The OKR approach is presently used by a number of Silicon Valley companies and multibillion-dollar companies like Google.

Team members frequently feel confused by the continuous change they experience as a result of the complexity of today’s organizations.

Employees frequently feel lost, demoralized, and lacking in drive as a result of the organization’s high-level and ethereal strategy goals and objectives.

A little background on OKR Framework

It’s important to note that the idea of OKRs is not brand-new. Peter Drucker created Management by Objectives, or MBO, in 1954, which marked the beginning of the lengthy OKR history. The OKR Framework was developed by Andy Grove, a former Intel CEO, as early as the 1970s.

Which companies use OKR? The largest Fortune 500 companies, such as Zynga, Sears, Twitter, Oracle, and many others, use OKRs on a worldwide level.

Also, OKRs are becoming more popular among startups and small businesses, enabling them to reach their objectives in a lot less time and accurately track progress.

How OKR’s work?

Under the three to five high-level goals that make up a typical OKR, 3-5 significant measurable achievements are listed. A predetermined set of indicators or scores, which are usually between 0 and 1.0, can be used to quantify the aforementioned significant results.Organizations use quantitative indicators to track or evaluate success. How frequently you establish goals is known as your cadence. Like Google, your business may have quarterly and annual objectives.

Making OKR a key element of your company’s quarterly planning and success reviews is a good place to start. However, it can also be done on a monthly or annual basis based on the needs and goals of the organization.

The limit for each department’s OKRs should be the same in order to promote collaboration and avoid issues. Remember that the OKR procedure is intended to be simple. In our article on the fundamentals, you can learn everything there is to know about OKRs.

OKR Framework And Its Benefits

Utilizing OKRs has a lot of benefits, but there are unquestionably okr disadvantages as well. You can develop effective OKRs for your company by understanding how to manage these problems.

The OKR is one of the best team management strategies that every company should employ, according to leading experts.

Why use OKRs, you ask? because it takes little time and effort and uses few resources. as a result, the company culture is preserved. because it greatly enhances employee productivity and performance for the company.

a Problem for Your Company
Studies show that workers who use OKR are typically more efficient at their jobs, which results in better performance and higher sales than workers who don’t.
Team members who didn’t use OKRs made a conscious effort to get involved with the process in future cycles.

Benefits of Organizational/Company Culture
One of the primary benefits of using OKRs for an organization is having a clear focus on metrics and KPIs. This leads to a culture shift from output to results.

Thanks to OKRs, the structure becomes more transparent, coherent, and clear. Together, these components greatly increase employee engagement.

How to implement the OKR Framework


The diagram below depicts how your organizational vision is connected to every team and individual contributor in your team from the annual down to the quarterly OKRs.


Mission Statement

Long-term Goals

Short-term Goals (done every year)

Objectives and Key Results (done every quarter)

Why Does the Vision of Your Company Matter?

Before attempting to achieve its goals, a company must first determine its “Why.”

The motivations directing the organization’s initiatives, practices, and actions must be understood by every team member.

As the leader who must ensure that Goals and Key Outcomes are enacted by establishing them, you should start by keeping the “end” in mind, such as how you picture your company in a few years.

Your goal-setting process should be guided by your organization’s mission.

Your company’s goal statement should be easy to condense into one sentence. It ought to list your organization’s objectives. It represents the pinnacle of all your efforts and the visionary goal of your business.

Vision statements and business taglines are frequently mixed up. While a mission statement may be clever and memorable, its main purpose is to highlight your team and culture rather than your company’s offerings.

Therefore, it is not necessary for your mission statement to resonate with everyone. Simply be ambitious and large.

Even though it might take your business years to realize this goal, it will serve as the driving force behind your and your employees’ diligent work.

How to Define a Company Mission Statement

The definition of the mission statement is one of the stages in implementing Objectives and Key Results in your business. Your company’s purpose is outlined in its goal statement.

For instance, the mission statement of an entertainment company might read as follows if its vision is to “make children happy”:

“To be the top source of information and entertainment for children around the globe. We aim to create the most original, cutting-edge, and lucrative entertainment experiences in the world by differentiating our materials and services through our portfolio of brands.

Take into account these suggestions when writing your company’s goal and mission statement:

  • Find out what you are truly enthusiastic about.
  • Imagine who you want to be when the trip is over.
  • Consider how you can use your abilities, resources, talent, and expertise to make a difference in the world.
  • Find the primary economic factor that is crucial for your business. Recognize the forces that propel your economy.

How to Strategically Plan for Your OKRs

Making a vision and purpose statement for your business is one thing. Getting them done is another. You can fulfill your goal statement in the following ways by applying the “Hedgehog Concept”:

  • You should be able to specialize in the goods or services that you are driven to provide by concentrating on your areas of interest.
  • You can use market research to help you discover industry norms and create strategies to make sure that customers are interested in your goods and services.
  • Concentrating on your strengths, when pondering this, you should take your company’s finances into account. That also applies to the qualifications, expertise, and experience of your workers.
  • To ascertain what your company excels at, you must understand it. You have the chance to set up effective internal procedures and plans to realize the goals of your business.
  • It is imperative that you determine the financial performance indicators. What degree would you have needed to have attained to declare success?

Strategic planning systems are used by many businesses to help them concentrate on the objectives they establish for each category.

However, these methods should be viewed as helpful in putting OKRs into practice rather than as a replacement for Objectives and Key Results in your goal-setting strategy.

Annual OKRs

In some organizations, OKRs are used to establish annual goals. To enable team members to concentrate on execution, they are now broken up into quarterly OKRs.

Be aware that the primary metrics that the leadership team oversees and is held accountable for will be displayed in your company’s key outcomes.

Many businesses mistake “tasks” for “key outcomes.” They’re not the same at all. Tasks are the things that employees must do as part of their responsibilities, whereas important results are success markers.

OKRs discourage team micromanagement. The framework aids businesses in identifying what success looks like and what teams and people must do to reach their objectives.

Either the leadership group or the CEO are given responsibility for the high-level key outcomes. Instead, the high-level KRs can be allocated to a particular team or agency.

Individual contributors may wind up with a “to-do list” instead of Objectives and Key Results after they have been cascaded to the team members, which would leave them less empowered to establish their own goals.

Each element of the OKR Framework contributes to the smooth and effective execution and, as a result, has a significant significance in the overall procedure. Use all of the components’ synergistic benefits, as pluswerk consulting advises, as shown in the illustration below.

OKR Framework Overview


COMPANY MISSION  – The company mission is a brief description of the company’s vision and purpose, and how they should be implemented.

MID-TERM-GOALS  – Mid-term goals (so-called MOALS) are the link between the company mission and the OKR. They are usually defined for one year.

OKR PLANNING – At OKR Planning the respective objective and key results become defined for the entire cycle and at all levels. This is done both top-down and bottom-up.

OKR WEEKLY – The OKR Weekly helps to synchronise the objective and key results  implementation and supports self-responsibility as a solid ritual
of the teams during the cycle. The weekly should only take about 15 minutes and should give an overview of the current status of the OKR.

OKR REVIEW – Review meetings are used to determine the degree of achievement at the end of an evaluation cycle. The scoring should be consistent with team standards.

OKR RETROSPECTIVE – During a retrospective, the teams analyse the OKR process from a systematic point of view. What did the team learn? What should be improved in the next cycle?

OKR COACH – As experts, coaches, facilitators, and change agents are OKR Coaches responsible for the smooth implementation of the OKR Framework in the company and support their teams in the Definition of OKRs and other regular events.

The Cycle Of The OKR Framework

Each cycle has many opportunities for improving teamwork, communication and strategic goals. The following events help:

  • OKR Planning
  • Weekly
  • OKR Review
  • OKR Retrospectives

Unless the business encounters an unexpected and crucial event to which it must react, goals and key results are typically not altered during the cycle.

This is uncommon, though, as review and retrospective typically point to possible areas for improvement for the following cycle.

It requires time for an organization to successfully implement the OKR Framework To get the full pull from OKR, it typically requires 3–4 cycles.

The learning curve can be considerably shortened by a thoughtful, well-designed implementation strategy.

Measures like internal training, OKR Coach training, orientation seminars, expert-moderated planning, reviews, and retrospectives improve the quality and speed of learning.

Keep in mind to always be humble, open to learning from your errors, and humble in general!

How to set OKR for your team

Step 1: Set the stage

Explain to your team how the KRs are evaluated and how that affects their performance. Introduce or reintroduce the idea of OKRs.

Tell them that it’s okay to set a high bar and fall short of it because OKRs are supposed to feel awkward (as long as they are making progress of course).

Step 2: Identify your objectives

Encourage everyone on your team to contribute to the ideation session. The senior aims should be in line with your team’s objectives (company objectives).

Try to create three to five lofty goals.

Step 3: Identify your key results

Write down the quantifiable results that show whether your goals have been met. Keep in mind that you are not handling duties. You are coping with outcomes.

Here’s an illustration:

Objective: Increase profit by 10%.

Key Results:

  • Launch seasonal campaigns (summer promos, Holiday fares, ) and double the revenue from the past year
  • Take cash discounts on suppliers to save 10% on purchases
  • Outsource fleet distribution to stores to reduce cost by 20%

One of your KRs may require collaboration with another team. Follow up with them from time to time and make sure that they’re on board.

Step 4: Review and analyse

As you go over your initial list, you might discover that you need to change your objectives or key results. If you have complete faith in your ability to meet your KRs, you are not being bold enough and are therefore still operating in the “safe zone.”

Try raising your goal until it becomes uncomfortable for you.

Step 5: Ask for feedback

It’s crucial to get feedback, particularly for the individuals who will be involved in the execution. They might have some excellent ideas to enhance your OKRs.

Step 6: Scoring

Scoring is a crucial component of Key Outcomes measurement. You can use Google’s sliding measure, which ranges from 0 to 1. This numerical indicator indicates whether you missed, got very close to, or successfully hit your goal.

Take note that a score of.7 on a key outcome is regarded as more successful than a score of 1.

OKR at Google: A Case Study

In one of his presentations, Google Ventures partner Rick Klau provided a very interesting look into how Google sets OKRs. The OKR is quite easy. It begins by establishing a goal and then lists several “Key Results.”

Google sets both yearly and quarterly goals. The goal for one quarter under Rick Klau’s leadership of Blogger, a Google tool for publishing blogs, was to enhance the company’s reputation.

Even though Blogger was a sizable platform and had been around for a while, it was losing favor as more writing platforms, like Tumblr, entered the market. Klau developed 4 Key Outcomes in order to enhance Blogger’s reputation:

  • Re-establish Blogger’s leadership by speaking to at least 3 industry events
  • Coordinate Blogger’s 10th anniversary PR efforts
  • Reach out personally to Blogger’s users
  • Fix DMCA process and eliminate music blog takedowns

Annual OKRs are more high-level and typically include Google’s periodic goals. However, these OKRs are not inflexible. Whenever a need occurs, they adapt and change.

Klau claims that Google has adopted OKRs at the managerial, squad, and even individual levels. This is crucial to how they evaluate their workers and make sure that everyone in the organization completes tasks and collaborates to keep the business moving forward.

Each quarter, Google employees rate their most important outcomes.

They use a range of 0 to 1. Not achieving 1 in every Key Outcome is the objective. In the absence of such evidence, it will be presumed that the member has produced a Key Result that is too simple. The individual is, in Klau’s words, “sandbagging it.” The target number of employees is between 0.6 and 0.7.

The fact that Google’s OKRs are public is another intriguing behavior. They can view each other’s results in addition to their OKRs.

Although it may appear a little intimidating, it aids Google workers in understanding what each other is working on.

To assist your business in establishing successful goals, look at other objective and key outcome examples.


  • While OKR goals are a little bit more aggressive and ambitious, they are usually attainable and reflect the output of an already established process or project.
What is OKR methodology?
  • Through a set of defined, precise, and measurable actions, the OKR methodology seeks to ensure that every employee in the organization, from important stakeholders and leaders to team members, understands the company’s objectives.
What is an OKR goal?
  • A framework for defining and monitoring goals and their results is called Objectives and Key Results (OKR). … An objective, or clearly defined goal, and one or more key results, or particular measures used to monitor the accomplishment of that goal, make up an OKR.
Who created OKR?
  • Peter Drucker created MBO, or Management by Objectives, in 1954, which is when OKR first became popular. Andy Grove co-founded Intel in 1968, and while serving as its CEO, he transformed MBO into the current paradigm of OKR. John Doerr joined Intel in 1974 and gained knowledge of OKR while working there.
How many OKRs?
  • 3 to 5 goals are typically ideal, as others have already stated. Additionally, each goal should have three to five KRs. However, since OKRs stand in for your most significant actions, you shouldn’t have too many.
What is a good key result?
  • The core of the complete OKR philosophy lies in the way key results are defined. Key outcomes are basically quantifiable markers of the achievement of the primary goal. Important outcomes clearly indicate how much of the goal has been accomplished. … Remember that important outcomes are outcomes and not activities or duties

How to properly do an OKR evaluation for your team is also very crucial so that everyone will be kept accountable, high performing, and in cadence with the phase of your company.

Did you like this article?

If you liked this article and you are looking for a way to align everyone in your organization, let’s have a call or simply download our OKR Guide.

We also offer OKR consulting and OKR training, but our approach differs from other companies, we believe OKRs should be fully integrated with your product development.

If you’re not ready to talk to us yet, attend our weekly OKR webinar.

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Luís Gonçalves

About Luís Gonçalves

Luis Gonçalves is an Entrepreneur, Author & International Keynote Speaker that works exclusively with Senior Executives of 7 to 8 figure businesses on the deployment of his game changing ‘Organisational Mastery’ Methodology.


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