Understanding OKRs: A Practical Guide to Writing Effective Objectives and Key Results

OKRs (Objectives and Key Results)  are an effective goal-setting framework that bridges the gap between strategy and execution. They help organizations focus on what truly matters, track progress effectively, and motivate teams to reach ambitious goals.

Even though the idea behind OKRs is straightforward, crafting them well can be surprisingly tricky. Objectives often end up too broad, key results may lack clear metrics, and teams sometimes treat OKRs like routine to-do lists instead of transformative goals. Don’t worry though! In this article, we share valuable tips for creating effective OKRs and highlight ways to avoid common mistakes.

Want some hands on support? Discover our OKRs Management App or contact us about a one day OKR training workshop.

OKRs (an abbreviation for objectives and key results) are a goal-setting protocol that companies, teams, or even individuals can follow to achieve measurable results.

An OKR can be summarized as:

“We will achieve [OBJECTIVE] as measured by [KEY RESULT] through [Initiatives/Projects].”

An objective is succinct sentence that describes a high-level goal that is linked to the organization’s mission. A well-written objective can be characterized by the following attributes:

• Concreteness: the objective is specific and definitive, providing clarity and guidance to the team so they understand what progression looks like.
• Action-oriented: the objective is a clear step in the direction to progress, contributing to the achievement of the company’s mission.
• Significance: the objective aligns with the company’s top priorities and overall strategy.
• Inspiration: the objective will differ from routine tasks. It inspires the team to think ambitiously to achieve results.

Once you have a draft of your objectives, review them by addressing the following questions:

• Are they among the top 3–5 priorities for this quarter?
• Are they clear and easy to understand?
• Do they include qualitative details?
• Do they inspire and drive change?
• Do they start with a verb?

Tip: Objectives should feel bold and motivational — if it sounds like a task, it probably isn’t an objective.

Key results are the metrics used to gauge the progress of an objective. A well-written key result can be characterized by the following attributes:

• Specificity and time-bound: Key results should address the objective from different perspectives. It’s advisable to set 3–5 key results per objective to maintain depth without overwhelming tracking efforts. Establish a defined period for monitoring progress effectively.
• Aggressive yet realistic: Key results should aim high, even if they might not be entirely achievable. This level of ambition encourages significant progress. However, they should still be within reach to keep the team motivated. Involving the entire team in defining key results encourages engagement.
• Measurability and verifiability: Key results must be clearly quantified, allowing straightforward measurement and verification at completion.

Once you have a draft of your key results, review them by addressing the following questions:

• Do they identify the drivers for achieving the objective?
• Are target values defined?
• Are they easy to understand?
• Are they time-bound and measurable?
• Do they provide regular progress information?
• Do they offer early warning signals if things aren’t going well?
• Do they challenge the status quo?
• Can they be answered ‘yes/no’ at the end of the period to confirm fulfilment?

Tip: Key results describe outcomes, not activities. If it sounds like a task (“launch campaign”), rewrite it into a measurable result (“increase campaign response rate by 30%”).

1. Start with Strategy – anchor OKRs to mission and priorities.
2. Draft Inspirational Objectives – use short, action-oriented statements.
3. Define Measurable Key Results – 3–5 per objective.
4. Balance Top-Down and Bottom-Up – ensure alignment and ownership.
5. Track Progress Regularly – with check-ins and tools like our OKR Management App.

To further shed light on to what makes an effective OKR, we have provided you with three examples.

O: Become the most efficient HR department in our industry, as measured by:

• KR1: Implement full automation for time-off and administrative leave requests, reducing processing time by 50 percent by the end of the quarter.
• KR2: Attain a 100-percent completion rate for employee and leadership training programs by the end of the quarter.
• KR3: Ensure that 100 percent of new employees completed and scored 90 percent or higher on the follow-up questions accompanying our company orientation video series.

O: Design a UX so intuitive that there are no customer service inquiries as measured by:

• KR1: Design matches 100 percent of customer requirements.
• KR2: Fewer than 1 UX-related customer service inquiries per week.
• KR3: Scale infrastructure to support 1000 users by the end of the quarter.

O: Improve project monitoring, as measured by:

• KR1: Onboard all stakeholders to Project for the web project plan and monitor weekly updates until project completion.
• KR2: 100 percent of projects have weekly status reports registered.
• KR3: Improve automated reporting in Power BI by 90 percent this quarter.

Our OKR Management App helps avoid these pitfalls with dashboards, templates, and automated reporting.

OKRs aren’t just for leadership. PMOs can use them to:

• Align portfolios with strategy
• Improve governance and prioritization
• Measure the PMO’s own service effectiveness

We explore this in our OKR workshop, showing how PMOs can add measurable value through OKRs. Download our brochure to learn more.

The role of the PMO has evolved over the last few decades, transiting from a traditional focus on project delivery to adopting agile and facilitation-oriented approach.

Today, the PMO expanded into nurturing communities of practice, facilitating change or adoption, and seeking opportunities for improvement to achieve organizational excellence. The PMO approach aligns perfectly with the OKR mindset. When we consider a few factors, we can see how prepared the PMO is to support OKR practices:

• Acting as Center of Excellence and Knowledge: The PMO operates as a center of excellence, equipped with extensive experience in project and process management, positioning it ideally to lead the charge in implementing OKRs.
• Understanding of Processes and Discipline: With an in-depth understanding of organizational processes, the PMO plays a crucial role in setting and supporting all tracking and checking processes within the OKR cycle.
• Coaching the Community of Practice: The PMO provides guidance and training to enhance teams’ understanding of effective OKR creation and management.
• Maintaining a Horizontal Approach: Operating horizontally across the organization, the PMO offers a unique perspective that is essential for aligning OKRs at each level of the organization.

In our annual State of Project Management Report, we found that many PMOs struggle to communicate their value. Leading OKR practices can give PMOs the opportunity to demonstrate the value they deliver.

Leading the OKR practice adds the following to the PMO:

• Strategic Value: Taking the lead in OKRs, the PMO contributes substantial strategic value to the organization by concentrating on its most critical and strategic objectives.
• Visibility: The PMO’s visibility is elevated through effective OKR leadership. It can demonstrate its contribution to organizational objectives and their impact on outcomes.
• Results: Through OKRs, the PMO can achieve quantifiable, tangible outcomes in the organization, reinforcing its position as a high-value partner.

Writing effective OKRs can be challenging – but with the practice and the right tools, any organization can make them work. As OKRs are rooted in agile principles, adaptation and reflection is all part of the process!

Remember:

• Keep OKRs clear, measurable, and aspirational.
• Avoid common mistakes like setting too many.
• Use the right tools to embed OKRs into everyday practice.
• Emphasize the OKRs are a collaborative venture within the organization.

You’ll find that you and your team will develop OKR-setting abilities quicker than you might expect. Embrace the journey, and with each iteration, you’ll move closer to achieving meaningful, impactful results.

• Explore our OKR Management App a Microsoft-based tool that also acts as a Viva Goals (retiring December 2025) alternative.
• Contact us about a OKR consultancy & workshops to build capability across your teams.