OKRs (objectives and key results) are a goal-setting framework in which a team sets a small number of ambitious, qualitative objectives and, for each one, two to five measurable key results that show whether it has been achieved. They are usually set quarterly and are used to align teams around shared priorities.
What it means
The objective describes what you want to achieve, for example "Make onboarding effortless for new customers". Key results are measurable outcomes, such as "Cut time to first value from 14 days to 5". Activities and projects are not key results; they are how you deliver them.
OKRs differ from KPIs. KPIs monitor the ongoing health of the business, while OKRs focus effort on change over a set period.
How it works in a UK business
Leadership sets company OKRs, then teams set their own that support them. Progress is reviewed weekly or fortnightly within the operating rhythm and scored at quarter end. Most SMEs get better results by starting with three company objectives or fewer.
Common mistakes are setting too many, writing tasks instead of outcomes and linking OKRs tightly to bonuses, which discourages ambition.
Frequently asked questions
What is the difference between OKRs and KPIs?
KPIs are ongoing measures of business health, such as gross margin or customer churn, that you track continuously. OKRs are time-bound goals for change, usually quarterly. A KPI that is off track can inspire an OKR, for example an objective to reduce churn with key results that measure progress.
How many OKRs should a business have?
Fewer than most people expect. Three to five objectives at company level, each with two to five key results, is a common guideline. Small and mid-sized businesses often do best with just two or three, because focus is the main benefit of the framework.
Last updated: 5 November 2026