Anatomy of an OKR
Objective — qualitative, ambitious, memorable. "Become the default tool for hospital handoffs." Key Results — 3–5 measurable outcomes that prove the objective happened. "Adopted by 50 hospitals." "NPS > 60." "90-day retention > 80%."
Andy Grove's rules
- Set them quarterly. Annual is too long; monthly is too short.
- Target a 70% achievement rate, not 100%. Hitting 100% means objectives weren't ambitious enough.
- Don't tie them to compensation. Once OKRs determine bonuses, people sandbag them.
↳ the comp-tied OKR trap
Doerr is explicit: OKRs work because people set ambitious stretch goals. Tie them to bonuses and people set goals they're sure to hit — defeating the framework. Performance reviews happen separately.
OKRs vs KPIs
| OKRs | KPIs | |
|---|---|---|
| Purpose | Set direction | Monitor health |
| Cadence | Quarterly | Continuous |
| Aspirational? | Yes — 70% target | No — should be on target |
| Examples | "Reduce churn by 30%" | "Monthly active users", "NPS" |