Sample Product OKR
🎯 Objective: Become the #1 onboarding experience in our category
Increase activation rate from 40% to 65%
65%Reduce time-to-value from 7 days to 2 days
50%Achieve NPS score of 50+ for new users
80%Company
Revenue, market share
Team
Feature adoption, NPS
Individual
Skill growth, deliverables
What are OKRs?
OKRs (Objectives and Key Results) is a collaborative goal-setting methodology used by teams and individuals to set ambitious goals with measurable results. The framework was invented at Intel by Andy Grove and later brought to Google by John Doerr, where it became central to the company's success.
An Objective is a clearly defined, qualitative goal that is inspiring and time-bound. It answers: "Where do we want to go?"
Key Results are specific, measurable outcomes that indicate progress toward the Objective. They answer: "How will we know if we're getting there?"
OKRs work because they create alignment (everyone knows the goals), focus (limited number of priorities), and transparency (progress is visible to all). For product teams, OKRs connect daily work to meaningful outcomes.
Anatomy of Good OKRs
Good Objectives
- +Qualitative: Describes an inspiring outcome
- +Actionable: Your team can influence it
- +Time-bound: Has a clear deadline
- +Ambitious: Stretches the team
- +Aligned: Supports company strategy
Good Key Results
- +Quantitative: Has a number/metric
- +Specific: Unambiguous success criteria
- +Outcome-focused: Measures results, not tasks
- +Achievable: Challenging but possible
- +Leading: Progress visible during quarter
The 70% Rule
OKRs should be ambitious enough that achieving 70% represents success. If you hit 100%, your targets were too easy. If you hit 40%, they were unrealistic. The sweet spot challenges teams while remaining achievable.
OKR Examples for Product Teams
Deliver a world-class mobile experience
Key Results:
Become the go-to platform for enterprise teams
Key Results:
Create a sticky product experience that users love
Key Results:
How to Set OKRs
Start with Strategy
OKRs should cascade from company strategy. Ask: "What are the most important things we need to accomplish this quarter to advance our mission?" Team OKRs should clearly connect to company-level OKRs.
Brainstorm Objectives
Gather the team and brainstorm potential objectives. Focus on outcomes, not outputs. Ask: "If we could only accomplish one thing this quarter, what would move the needle most?" Aim for 3-5 objectives.
Define Key Results
For each objective, identify 2-4 measurable key results. Include a mix of quantity (how much), quality (how good), and efficiency (how fast) metrics. Set current baselines and stretch targets.
Align and Negotiate
Share draft OKRs with stakeholders and leadership. Check for alignment with other teams and company priorities. Adjust based on feedback while maintaining ambition. Get explicit buy-in.
Commit and Communicate
Finalize OKRs and make them visible to the entire organization. Share the "why" behind each objective. Ensure every team member understands how their work connects to the OKRs.
OKR Cadence and Rhythm
| Timeframe | Activities | Stakeholders |
|---|---|---|
| Annual |
| Executive team |
| Quarterly |
| Department/team leads |
| Weekly |
| Team members |
| Daily |
| Individual contributors |
Common OKR Mistakes
Too many OKRs
Teams lose focus trying to achieve everything
Fix: Limit to 3-5 objectives with 2-4 key results each
Outputs instead of outcomes
"Launch feature X" doesn't measure impact
Fix: Focus on results: "Increase conversion by 20%"
Setting easy targets
Teams achieve 100% but don't stretch themselves
Fix: Aim for 70% achievement; make OKRs ambitious
No regular check-ins
OKRs become "set and forget" documents
Fix: Weekly progress reviews, monthly deep-dives
Top-down only
Teams don't feel ownership over goals
Fix: Mix top-down strategy with bottom-up input
Tying to compensation
Incentivizes sandbagging and gaming
Fix: Keep OKRs separate from performance reviews
Best Practices
Do This
- +Keep OKRs visible and transparent to all
- +Review progress weekly with the team
- +Celebrate progress, not just completion
- +Update OKRs if context changes significantly
- +Connect individual work to team OKRs
Avoid This
- -Don't set OKRs and forget about them
- -Don't use OKRs as a task list
- -Don't change OKRs every few weeks
- -Don't let fear of failure lead to easy targets
- -Don't skip the reflection/retro phase
Frequently Asked Questions
What are OKRs?
OKRs (Objectives and Key Results) is a goal-setting framework that connects ambitious objectives to measurable key results. An Objective is a qualitative description of what you want to achieve. Key Results are 3-5 quantitative metrics that measure progress toward the objective. OKRs were popularized by Intel and Google and are now used by thousands of companies to align teams and drive results.
What is the difference between OKRs and KPIs?
KPIs (Key Performance Indicators) measure ongoing business health and operational performance—they're metrics you monitor continuously. OKRs are time-bound goals designed to push teams toward ambitious outcomes. KPIs answer "How are we doing?" while OKRs answer "Where are we going?" You might have a KPI for monthly active users (ongoing metric) and an OKR to increase MAU by 30% this quarter (time-bound goal).
How many OKRs should a product team have?
Most teams should have 3-5 objectives per quarter, with 2-4 key results per objective. Having too many OKRs dilutes focus—if everything is a priority, nothing is. Company-level OKRs should be 3-5, department-level 2-4, and individual OKRs 2-3. Remember: OKRs are about focus and alignment, not comprehensive task tracking.
What makes a good Objective?
A good Objective is qualitative, inspirational, and time-bound. It should be memorable, challenging but achievable, and align with company strategy. Bad objectives are vague ("Do better"), too easy ("Maintain current performance"), or not actionable ("Be the best"). Good objectives inspire the team: "Become the most trusted brand in fintech" or "Delight customers with a seamless onboarding experience."
What makes a good Key Result?
Good Key Results are specific, measurable, and time-bound. They answer "How will we know if we achieved the objective?" Use numbers: "Increase NPS from 30 to 50" not "Improve customer satisfaction." Aim for 70% achievement—if you hit 100% every time, your KRs are too easy. Include a mix of quantity (how much), quality (how good), and efficiency (how fast) metrics.
Should OKRs be tied to compensation?
Generally, no. Tying OKRs to compensation incentivizes sandbagging (setting easy goals) and discourages ambitious targets. OKRs should stretch teams beyond their comfort zone—expecting 70% achievement means 30% "failure" by design. If OKRs affect bonuses, teams will game the system. Keep OKRs as a strategic alignment tool, not a performance evaluation mechanism.
How often should OKRs be reviewed?
OKRs are typically set quarterly and reviewed weekly. Weekly check-ins (15-30 minutes) track progress and identify blockers. Monthly reviews assess whether you're on track and if adjustments are needed. Quarterly reviews evaluate achievement and inform the next cycle. Annual planning sets company-level OKRs that cascade to quarterly team OKRs.
How do OKRs connect to product roadmaps?
OKRs define outcomes (what you want to achieve); roadmaps define outputs (features/initiatives to build). First set OKRs, then prioritize roadmap items based on which will best move the key results. If a roadmap item doesn't support any OKR, question whether it should be prioritized. This ensures your product work directly ties to business objectives.
About the Author
Aditi Chaturvedi
·Founder, Best PM JobsAditi is the founder of Best PM Jobs, helping product managers find their dream roles at top tech companies. With experience in product management and recruiting, she creates resources to help PMs level up their careers.