t
rP
os
9 - 1 2 3 -0 8 1
MARCH 22, 2023
SURAJ SRINIVASAN
LI-KUAN (JASON) NI
A Primer on OKRs
op
yo
OKRs have helped us to 10x growth, many times over. They have helped us make our crazily bold mission of
‘organizing world’s information’ perhaps even achievable. They’ve kept us on time and on track when it mattered
the most.
— Larry Page, Google Co-founder1
tC
The OKR framework (“OKR” or “OKRs” which stands for Objectives and Key Results) is a popular
goal-setting and strategy execution tool. The framework was introduced by former Intel CEO Andy
Grove and promoted by his protege and leading venture capitalist John Doerr, among others. The OKR
framework has been adopted and practiced at companies such as Intel, Google, LinkedIn, Twitter,
Netflix among hundreds of others ranging from start-ups to large businesses. Users have found it to
be a powerful performance management and goal setting tool as it focuses on near-term measurable
goals without losing the aspirational aspect of an organization’s unique mission or purpose. According
to Doerr, OKRs have four “super powers”: force leaders and teams to make hard choices, align and
connect for teamwork, track for accountability using measurable indicators, and stretch organizations
beyond what they thought was possible.2
This primer aims to explain fundamental OKR concepts, summarize implementation best practices,
discuss OKR mistakes to avoid, and compare OKR with other common management goal setting tools.
OKR Fundamentals
Do
No
The “O” in OKR stands for “objectives” and are often referred as the “what” of OKRs. They describe
a goal that supports an entity’s mission and represent a “North Star” that keeps individuals or teams
centered on the path towards where they want to be within the next 30-90 days. At its core the objectives
identify the most important things to get done and what success looks like. A good objective should be
meaningful, audacious, concise, memorable, and inspiring. For instance, a local Italian restaurant with
a mission statement of “serving the best Italian dining experience” may set an objective to “become the
most popular Italian restaurant in town.” A real-life example is ONE Campaign, a non-profit cofounded by musician-philanthropist Bono that used OKRs to set two significant and action-oriented
objectives: “debt relief for the poorest countries in the world” and “universal access to anti-HIV
drugs.”3 In the words of Doerr, “Objectives marry the pie-in the sky ambitions with the down-on-the
ground realities.”
In short, a good objective should be able pass the test posed by the following questions:
Professor Suraj Srinivasan and Research Associate Li-Kuan (Jason) Ni prepared this note as the basis for class discussion.
Copyright © 2023 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685,
write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu. This publication may not be digitized, photocopied,
or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
A Primer on OKRs
rP
os
t
123-081
Is it meaningful and impactful?
•
Is it a top priority?
•
Does it articulate a clear direction?
•
Is it audacious?
•
Is the outcome taken for granted or does it take what the team does every day to the next level?
•
Is it inspiring and motivating that people will want to be on board?
•
Is the objective crisp and easy to remember?
•
Does it empower the team?4
op
yo
•
The “KR” in OKR stands for “key results” and are often referred as the “how” of OKRs. They
provide a roadmap to accomplish the associated objectives in the next 30-90 days. Each objective is
typically associated with three to five key results that represent the necessary milestones. Good key
results are specific, time-bound, measurable, verifiable, aggressive yet realistic. They focus less on
output (tasks finished) but more about outcome (value created). The completion of good key results
naturally brings the linked objectives to fruition. If key results are accomplished but there isn’t progress
towards the objectives, the key results probably were not the right ones for the intended objectives. 5
tC
Choosing the metrics or indicators is a major part of setting key results. They can be anything
measurable such as growth, engagement, revenue, performance, or quality. In choosing indicators, one
should choose leading instead of lagging indicators. Revenue in a business or vote count in an election,
for example, are lagging indicators because revenue figure comes out at the end of a business period
and vote count only sees light at the end of an election. There is little left to do by the time a lagging
indicator’s result is known. In contrast, leading indicators such as number of sales agreements signed
or support for a candidate or position can provide early signals and allow for adjustments. 6
No
To illustrate, recall the hypothetical restaurant example above which has the objective of becoming
the most popular Italian restaurant in town. In establishing the associated key results, one might be
tempted to write “interviewing 30 patrons and get feedback.” Although this can be a measurable key
result, note that it is output oriented. On the other hand, “increasing average Google review rating
from 4.3 to 4.8” or “increasing monthly new patrons by 30%” are not only quantifiable but are also
outcome-oriented indicators.
In short, a good key result should pass the following tests:
Is it something the team can start delivering right away?
•
Does it use a leading indicator instead of a lagging one?
•
Will this tell us if the team is succeeding in making progress towards the objective?
Do
•
•
Does this have a focused scope?
•
Does it quantify impact?
•
Is success clearly defined?
•
Is it specific and time-bound?
2
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
123-081
•
Is it aggressive yet realistic?
•
Is it measurable and verifiable?7
rP
os
t
A Primer on OKRs
See Exhibit 1 for real-life OKR examples, including organization-wide annual OKRs at Mozilla
Foundation (creator of Firefox browser), CEO’s quarterly OKRs at Gitlab Inc. (software startup), and
an engineering team’s OKRs at BBC iPlayer (BBC’s video-on-demand service). Note that Mozilla in
practice also identifies the KR Lead responsible for each Objective and Key Result.
Committed OKRs vs. Aspirational OKRs
op
yo
Just how stretched or audacious should OKRs be? In practice there are two types of OKRs –
Committed and Aspirational OKRs. Committed OKRs, or “roofshot,” are those the teams are expected
to achieved 100 percent. There is usually a clear path and knowledge on how to complete them. At the
end of the cycle anything below a perfect score for Committed OKRs should warrant a discussion on
planning and execution. On the other hand, Aspirational OKRs, or “moonshots,” are visionary, lofty,
and ambitious. They entail high goals and the expectation is around 70% completion with lots of room
for variance. They are meant to see just how far the team can go. The rationale behind Aspirational
OKRs is best summarized by the famous quote of writer Norman Vincent Peale, “Shoot for the moon.
Even if you miss, you’ll land among the stars.”
tC
Committed OKRs are a good start for new OKR adopters as it may take time to build a result-driven
culture. Too many Aspirational OKRs can easily overwhelm people, causing fatigue or apathy towards
them. Sometimes Committed and Aspirational OKRs can be combined; for instance, have one key
result be aspirational under a Committed OKR. The optimal mix of the two types of OKRs takes time
and experience to calibrate and depends on company resources, morale, commitment, and culture. 8
OKR Implementation Best Practices
No
Doerr once said, “OKRs are not a silver bullet. They’re not going to be a substitute for a strong
culture or for stronger leadership, but when those fundamentals are in place, they can take you to the
mountaintop.” As implied, high-quality OKRs in themselves do not guarantee a successful OKR
journey although they are a necessary prerequisite. The underlying resources and supporting
mechanism are just as important. The following are some of the best practices to implement OKRs
effectively:9
Leadership buy-in. Leaders should spend enough time to think, emphasize, and communicate
organization-level OKRs to the entire organization so team-level OKRs can contribute to the common
objectives.
Do
Compensation Disconnect. Linking OKRs directly to compensation incentivizes people to set
conservative and attainable goals instead of moonshots that can actually propel the organization
towards its ambition. With that said, many organizations have made OKR achievements part of a
multi-facet evaluation such as a 360-review. Whether to make OKRs part of compensation is a
controversial topic. OKR practitioners would generally agree that OKRs should supplement a
performance review but differ in whether OKR performance should directly determine compensation.
Transparency. An important concept in the OKR framework is transparency. Since OKRs are
often not directly tied to compensation, making them visible, including the OKRs themselves and the
3
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
A Primer on OKRs
rP
os
t
123-081
associated progress tracker, within the appropriate unit and cross units promotes accountability and
helps the align OKRs across different parts of the organization.
Time Commitment.
Most worthwhile changes take time. OKRs are no exceptions. Many
managers jump on the OKR hype only to be discouraged by the time required for people to practice,
fine-tune, and get comfortable with it. Therefore, it is important to request patience and time
commitment from the whole organization before seeing the benefits of OKRs.
Coaches and Advocates. Whether they be outside consultants or internal personnel who have
OKR experiences, OKR coaches can reduce the risk of people walking in the dark. Creating a platform
for advocates and champions to share best practices or success stories can also boost morale.
op
yo
Status Meetings. Weekly team check-in meetings on OKR progress and task priorities can
promote accountability, ensure everyone is actually “living” the OKRs, and provide a cadence of
commitment and celebration. These status meetings should be as simple as possible. They are generally
a conversation about how team members can assist each other to accomplish the team OKRs rather
than a “return and report” that lists every little things people have done.
Reflection.
At the end of each OKR cycle, retrospective review and grading is generally
conducted. Reflection sometimes takes the form of scaling outcomes on a grading scales of zero-to-one
or a zero-to-ten. Regardless of the mechanics, the scoring criteria must be clearly defined in words to
be powerful and meaningful. For example, “0.5: almost what we hope to achieve but not quite,” “0.7:
difficult but attainable; what we want to accomplish,” or “1.0: moonshots that feel nearly impossible to
achieve.” Teams and individuals should reflect on the graded OKRs, success factors, and obstacles. As
important as it is to solicit postmortem conversation and feedback, managers should also remember to
regularly celebrate successes to maintain morale.
Alignment.
tC
Aligned OKRs allow local ownership that contributes to overall strategic priorities
of the organization. In doing so, managers should review to ensure OKRs of different units are not out
of alignment or directly contradict one another. Still, a perfect alignment is hard to achieve. After all,
OKRs are built on the premise that an organization that hires well, delegates more, and trusts its teams,
eventually succeeds.10
OKR Cycle Speed.
No
A lot happens during an OKR cycle refresh. Teams need to grade and reflect
on the progress made towards the OKRs, set new OKRs for the next cycle, review or critique others’
new OKRs, and adjusting their own to gain alignment, and publish the finalized OKRs. Companies
should set a clear expectation on the cycle refresh timeline. For best practice, this cycle refresh period
should be quick, preferably within 48 hours so as to scale OKRs without dragging the company to a
halt every cycle.
A Note on Alignment
Do
Traditionally, the alignments of OKRs often conveys this visualization: the executive team set
company-wide OKRs, and the key results often become the objectives for departments, and
departmental key results then become objectives for teams, and the sequence “cascades” to the
individual level. While downward cascading OKR might work well in small organizations, it can easily
become “command and control” in larger organizations, not to mention the lagged time for lower levels
to wait for upper levels to finalize their OKRs.
A better execution of alignment is to trust each autonomous division (such as product and sales
teams) to set their own OKRs using “localized” language and metrics that are relevant to each unit as
4
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
123-081
rP
os
t
A Primer on OKRs
long as they are “aligned” with the overall strategy and company-wide OKRs. For speed, nonautonomous teams (such as design, legal, customer service, finance, and other service teams) are
encouraged to set their own OKRs first unless workload is highly unpredictable. They can then adjust
OKRs once the related autonomous teams publish their OKRs. Note that alignment can also happen
laterally when two teams depend on each other to hit the objectives. Also note that some service teams
(such as legal and finance) may have a relatively predictable workflow (business as usual) and OKRs
may not be necessary for them.
See Exhibit 2 for an illustration of these best practices within an OKR period.
Common OKR Pitfalls
op
yo
Like all new things, OKR implementation and alignment takes time, effort, and commitment.
Organizations should treat every quarter as an opportunity to improve their OKR practices. In doing
so, organizations should avoid the following common OKR pitfalls.
Failing to differentiate between Committed and Aspirational OKRs. If a Committed
OKR is communicated as an Aspirational one, teams may not take it seriously and underperform; on
the other hand, if an Aspirational is communicated as a Committed OKR, teams may divert resources
from other OKRs and attempt to “rescue” the Aspirational OKR.
Business-as-usual OKRs. This happens when teams set up OKRs based on what they are
currently doing instead of what the business or clients want. Business-as-usual OKRs maintain the
status quo and even encourages “sandbagging” behavior to under-promise in order to over-deliver.
This defeats the very purpose of OKRs to stimulate growth and innovation.
tC
Unrealistic Committed OKRs. Committed OKRs are expected to be fully delivered at the end
of the cycle. Therefore, they should be set in consideration of capacity and time. That is, Committed
OKRs should not require the hiring of more people and can be realistically achieved within the OKR
cycle.
No
Timid Aspirational OKRs. Aspirational OKRs by definition should be moonshots without
clear path or knowledge to fully accomplish them (hence aspirational). If an OKR came from the
perspective of incremental growth – “what could we do if we had more resources and got lucky?” – it
is unlikely to be truly aspirational. Also, sometimes businesses are tempted to promptly adopt
customer feedback as OKRs, but in doing so they sometimes misalign with the company mission,
something best reflected in a quote attributed to Henry Ford: “If I had asked people what they wanted,
they would have said faster horses.” Therefore, before using OKRs to treat customer pain point,
consider if solving the customer demand will help realize the long-term vision.
Do
Low-value objectives. Also known as “who cares” OKRs, these objectives are disconnected
from clear strategy and their completion has no business value. For example, “increase consultants’
average work hours from 50 to 60 hours a week” does not directly equate to better service quality or
profit.
Insufficient key results for objectives. If the completion of all key results can still lead to an
incomplete objective then more key results should be added or existing ones should be modified.
Google’s OKR playbook considers this trap to be “particularly pernicious” because “it delays both the
discovery of the resource requirements for the objective and the discovery that the objective will not be
completed on schedule.”
5
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
A Primer on OKRs
rP
os
t
123-081
Micro-management. An OKR is meant to be the brainchild of team input, not a manager
assignment. Team authorship is crucial as it yields higher ownership and more diverse perspectives.
Even when explicit alignments are employed, teams that inherit given objectives should use them as a
starting point and craft their own key results. The organization is micro-managing if the entire set of
OKRs are handed over to sub teams.
op
yo
Jam-packed OKRs. A reminder that each OKR comes with an opportunity cost of not doing
something else. If the team feels compel to specify OKR priorities, chances are it has too many OKRs.
A tightly-focused OKRs are better than a laundry list. One common cause for this pitfall is stuffing
normal operational metrics and existing business-as-usual initiatives into OKRs. OKR users should
remember that OKR is a framework to channel focus on what really matters; it is not a prescriptive
process for how to do the work like Agile or Kanban method.11
Comparing OKR with Other Strategy Execution Frameworks
Many strategy execution frameworks and models exist in the performance management space,
including (but not limited to) the following:
KPIs (Key Performance Indicators)
•
Balanced Scorecard
•
Hoshi Kanri or Compass Management
•
MORA (Mission, Objectives Results, Actions)
•
OGSM (Objectives, Goals, Strategy, Measures)
•
Rockefeller Habits
•
SOAP (Strategy on a Page)
•
V2MOM (Vision, Values, Methods, Obstacles, Measures)
•
VMTs (Vision, Methods, Targets)
No
tC
•
•
BPM (Big Picture, Priorities, Measures)
These frameworks share the following characteristics:
Ambition level: are targets for attainment the best possible or most predictable outcomes?
•
Mindset: does the framework measure activity (output) or the outcomes of activity?
•
Cadence – what is the pace of iteration on strategic priorities?
Do
•
•
Alignment nodes: are the alignment nodes individuals, functional hierarchy, products, business
units, dynamic teams, or a mix? Does hierarchy or mission drive alignment?
•
Inclusion and scope: are strategic thinking and alignment limited to top management layers or
does the framework create the opportunity to participate deeply into the organization?
6
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
123-081
•
rP
os
t
A Primer on OKRs
Measurement behavior: what is the frequency and transparency of measurement? Is
measurement private quarterly conversations between two individuals or transparent weekly
conversations within and across teams?
Despite the similarities, popular strategy execution models demonstrate different emphasis and
strengths. Below we compare OKRs with Key Performance Indicator, Balanced Scorecard,
Management by Objectives, and Hoshin Kanri.
op
yo
OKR vs. Key Performance Indicator Key performance Indicator (“KPI”) uses quantitative
metrics to gauge how a company is performing. Common KPI metrics may include but not limited to
turnover rate, net promoter score, new subscriber count, bounce rate, recurring monthly revenue, and
so forth. In that regard, KPI is very similar to key results. But KPIs are also often results/output driven
as opposed to the more outcomes driven OKR leading some practitioners to label OKRs as “KPI with
a soul.” Nevertheless, while KPI generally consider reachable goals, OKR, especially Aspirational
OKRs, seek more aggressive and ambitious objectives. Further, KPI tends to be more stable whereas
OKR requires frequent (monthly or quarterly) updates. In practice the two can (but do not have to)
complement each other: OKR can be adopted for goal-setting and business improvement while KPI
can simultaneously monitor ongoing project performance.12
tC
OKR vs. Balanced Scorecard
Balanced Scorecard (“BSC”) and OKR are both strategic
planning and execution tools. Despite that both utilize objective, metric (called key results for OKR and
measures for BSC), and motivation to succeed, they differ in some ways: BSC generally takes an annual
cadence whereas OKR takes a monthly or quarterly cycle; OKR champions risk-taking and therefore is
mostly divorced from compensation but BSC emphasizes accountability and hence a strong link to
compensation; OKR structures its objectives strategically to the most important thing in the next cycle
when BSC is crafted holistically under four pillars (financial, customer, internal, and learning); and
OKR focuses more on input-oriented metrics (e.g. new subscribers) while BSC’s top-down structure
favors output-oriented goals (e.g. revenue). Overall, the Balanced Scorecard Institute suggests that BSC
is capable to convey and execute strategy at the organization level while OKR is best for motivating
sub-units and individuals to set and accomplish targets.13 Overall, BSC and OKRs can be used to
complement one another. OKRs can be used at the level of activities to drive larger BSC goals.
No
OKRs vs. Management by Objectives Management by Objectives (“MBO”) was introduced
by Peter Drucker in his 1954 work “The Practice of Management” and shook the top-down norm at the
time with the notion that people are more likely to follow through when they have a say on the course
of action. MBO also provided the foundation upon which Andy Grove developed the substance of
OKRs. MBO focuses on “what to achieve” and concern less about metrics so performance measurement
essentially is flexible and open. Further, MBO is set annually and privately between an employee and
manger in a top-down fashion whereas OKR stresses transparency and directional flexibility and have
shorter cycle time. Similar to BSC, MBO is typically more risk-averse than OKRs and is usually tied to
compensation. Although widely used in the 1960’s, MBO has given way to more comprehensive goalsetting approaches, including OKR.14
Do
OKRs vs. Honshin Kanri Honshin Kanri (“HK”) have been used by many successful
companies like Tesla, Toyota, HP, and Bank of America. Similar to OKR, HK is also good at connecting
strategic objectives with organizational functions and activities but has a longer performing period of
three to five years with supporting annual plans. Like OKRs it also emphasizes a strong alignment
throughout an organization, with clear focus on priorities and well-defined responsibilities.15
7
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
A Primer on OKRs
rP
os
t
123-081
An important note when comparing management goal-setting methodologies is that no one tool is
inherently “superior” than another; they are apples and oranges, and each possesses different flavor
and emphasis: some encourages ambition while others champion steady performance; some concern
with activities while others measure outcomes; some promotes short sprints while others facilitates
long-term progress; some emphasizes hierarchy while others dismantles them; yet some drives toplevel strategic thinking while others creates bottom-up initiatives. Ultimately, the “right” tool is the one
that best fit an organization’s needs.
Conclusion
op
yo
It’s not a heavy lift to get started with OKRs. You can be the transformative agent in your
organization today. Start OKR piloting programs, train people on OKR, and identify OKR champions.
Provide spot training and proactive coaching during regular status meeting. Assess outcomes and learn
best practices. Celebrate success. Repeat and refine.
OKR is a relatively simple yet effective tool: objectives are the “why” and key results are the “how.”
But more than a tool, it implies a mindset —one that can help organizations identify what matters the
most and approach the future with confidence. Perhaps the value of OKRs is best conveyed in the
words of Bono, a fan of OKRs:
Do
No
tC
If the heart doesn’t find a perfect rhyme with the head, then your passion means
nothing. The OKR framework cultivates the madness, the chemistry contained inside it.
It gives us an environment for risk, for trust, where failing is not a fireable offense. And
when you have that sort of structure and environment and the right people, magic is
around the corner.16
8
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
123-081
Exhibit 1
OKR Examples
Mozilla Foundation 2022 OKR
rP
os
t
A Primer on OKRs
Mission statement: fueling a movement for a healthy internet
Mozilla’s definition of Objectives: “What do we want to do and why?”
Mozilla’s definition of Key Results: “How will we know if we’re successful?”
Org-wide OKRs:
KR#
op
yo
Objective 1: Making AI Transparency the Norm: Test AI transparency "best practices" to increase
adoption by builders and policymakers.
Key Results
150 builders involved in the creation of the Best Practices Framework
Motivation:
We want to learn from and seed a global community of builders committed to interrogating
current practices and championing trustworthy AI within product teams at tech companies
Sample Activities:
•
•
•
•
•
Transparency regulation in India
Using ‘computable contracts’ to support AI transparency
Meaningful AI Transparency’ research
US-focused public awareness/policy push on systemic transparency
Mozilla Open Source Auditing Project (M-OAT) research/ paper
tC
1.1
5 communities use RegretsReporter data as a platform to test its relevance
No
Motivation:
In 2021 we tested whether data donation was effective in driving policy change related to AI
transparency in the EU. In 2022, we’ll use RegretsReporter in more regions and with specific
communities to test its impact.
1.2
Sample Activities:
Do
•
•
1.3
•
Investigating potential for data donation tools to drive policy change
Chico/Vero Instituto using RegretsReporter to support a YouTube investigation ahead
of the Brazilian election in August
Collaboration with GLAAD on an investigation into what YouTube is recommending
LGBTQ+ individuals
25 bi-partisan policymakers endorse one or more aspects of our US platform transparency
campaign
9
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
A Primer on OKRs
rP
os
t
123-081
Motivation:
We’re aiming to grow public awareness about the need for ad transparency and researcher
access in the US to spark action by regulators.
Sample Activities:
•
•
•
op
yo
•
•
Privacy Not Included: Review of kids platforms
Partnerships with civil society orgs - Women’s March, MomsRising, etc.
US public message development + testing, paid advertising + marketing partnerships,
and earned media/PR
Advocacy research monitoring platform activities
Monitoring bias in dating apps
GitLab Inc. FY23-Q4 (November 1, 2022 – January, 2023) CEO OKR And
Schedule
OKR Schedule:
• -5 days to Q4: CEO shares top goals with E-group for feedback
-4: CEO pushes top goals to Ally.io
•
-4: E-group propose OKRs for their functions in the OKR draft review meeting agenda
•
-3: E-group 50 minute draft review meeting. After, function OKRs are put into Ally.io and links
are shared in #okrs Slack channel
•
-2: E-group discusses with their respective teams and polishes OKRs
•
-1: CEO reports post links to final OKRs in #okrs slack channel and @ mention the CEO and
CoS to the CEO for approval
No
tC
•
•
0 (Q4 Start): CoS to the CEO updates OKR page for current quarter to be active and includes
CEO level OKRs with consideration to what is public and non-public.
CEO OKR:
Objective 1: Drive revenue through delivering customer results
KR 1.1: Automate Dedicated
Do
KR 1.2: Enhance security through meeting FedRAMP and Yubikey targets
KR 1.3: Make GitLab easier to buy by completing Fulfillment Efficiency and registration feature targets
Objective 2: Mature GitLab’s DevSecOps Platform to improve product experience and increase user
engagement
KR 2.1: For each stage of GitLab, update Direction page to address delta with BIC competitor
10
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
123-081
rP
os
t
A Primer on OKRs
KR 2.2: Complete UXR and Designs for Feature Discovery Moments (FDM) and direction on ideal
cross-product FDM experience
KR 2.3: Activate 15 new Leading Organizations
KR 2.4: Do FY24-Q1 OKRs in GitLab
Objective 3: Grow careers
KR 3.1: Certify at least 100 GitLab Inc. team members and 1 person in each department as TeamOps
Trainer: Level 1
op
yo
KR 3.2: Roll out a new leadership training module company wide (Elevate) and successfully enroll 15%
in our leadership community in the course by the end of FY23
KR 3.3: Increase URG management from 12% to 14% (globally)
BBC iPlayer UX Team OKR (around 2019)
Objective: Showcase full [BBC iPlayer] series and make them easy to watch, to keep users coming
back.
KR 1.1: Document a one year cross platform vision by 1 Aug.
KR 1.2: Get green light from all platforms to proceed based on the vision proposal by 10th Aug.
KR 1.3: Have 10 prioritised epics for the three platforms for next quarter by 18th June.
tC
KR 1.4: Increase time spent by 5% on web (as measured by A/B tests) by 23rd June.
Mozilla Foundation, “2022 OKRs,” last updated August 31, 2022, https://wiki.mozilla.org/Foundation/2022/OKRs,
accessed March, 2022; see also GitLab Inc., “FY23-Q4 OKRs,” https://about.gitlab.com/company/okrs/fy23-q4/,
accessed March, 2022; see also Leo Marti, “How We Transformed the BBC iPlayer Team into an Innovation Machine,”
April 19, 2019, https://medium.com/portfolio-leo-marti/how-we-transformed-the-bbc-iplayer-team-into-aninnovation-machine-3130ba5f7120, accessed March, 2023.
Note:
Mozilla published six OKRs for 2022, of which we only show the first one as an example.
Do
No
Source:
11
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
A Primer on OKRs
Source:
OKR Alignment Model of a Hypothetical Food Ordering and Delivery Company
casewriters.
op
yo
Exhibit 2
rP
os
t
123-081
Objective: dominate the food ordering and delivery industry
o
Key result 1: increase new customers by 30%
o
Key result 2: expand partner restaurants by 40%
o
Key result 3: increase delivery personnel by 25%
No
•
tC
The executive team from the food ordering and delivery company grades Q1 OKR results and
publishes the following Q2 company OKRs one week before Q2 starts:
After seeing the company OKRs, autonomous units such as marketing and sales department
directly take the relevant company key result as its Q2 objective (known as “explicit alignment”) and
publish their OKRs five days before Q1 starts. Assume marketing has the following OKRs:
Objective: increase new customers by 30%
Do
•
o
Key result 1: 500K site visitors per month via technical and non-technical SEO
o
Key result 2: launch three major ad campaigns on social media platforms
o
Key result 3: get 10 micro-influencer a week to share our services
o
Key result 4: use online visibility and marketing analytics to improve content
optimization
12
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
123-081
rP
os
t
A Primer on OKRs
After seeing sales department’s Q2 OKRs, marketing does not feel the need to laterally align with
sales department as both departments have sufficient resources to accomplish their separate OKRs.
The design team is a non-autonomous unit in the company and its major purpose is to support the
marketing department. The design team chose to publishes its OKRs five days before Q2 based on the
company OKRs (“optional downward alignment”). Design’s OKRs initially were more towards
creating advertisement and marketing materials. However, upon seeing marketing’s OKRs, the design
team decides to revise its OKRs to better align with marketing. In doing so, it does not explicitly inherit
a marketing key result as its objective but decides to come up with an aligned but original objective
(known as “directional alignment”):
Objective: make the most efficient and appealing user interface to attract more traffic and orders
o
Key result 1: hire consultants to improve UI aesthetics
o
Key result 2: conduct a focus group study and get feedback on how to improve the
website
o
Key result 3: mandate that all images in the content have alternative text and titles
op
yo
•
The design team’s revised OKRs is published three days before Q2 begins. The next two days each
unit spends time to review, critique, and adjust its OKRs to make sure everyone is materially aligned
towards the company objective to gain the largest market share in the industry.
The company agreed that the legal team can use health metrics to monitor performance and does
not need to establish quarterly OKRs due to the relatively predictable work nature.
Do
No
tC
At the beginning of Q2, all units publish their Q2 OKRs. Throughout the quarter each team holds
weekly status meeting to keep its members accountable and celebrate successes. A week before Q2
ends each unit grades and reflects on Q2 performance on the OKR, and the cycle repeats.
13
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
A Primer on OKRs
Endnotes
rP
os
t
123-081
1 Mayank Prabhakar, “All About OKRs,” November 28, 2020, https://blogs.talentdux.com/all-about-okrs-c6938cc273d9,
accessed January, 2022
2 Giulia Pines, “The OKR Origin Story,” June 6, 2018, https://www.What Matters/articles/the-origin-story, accessed January,
2022; see also John Doerr, “Measure What Matters,” April 2018, page updated March, 2021,
https://www.hawkins.io/book/measure-what-matters/#background, accessed January, 2022.
3 https://www.one.org/us/, accessed January 2022.
4 What Matters, “Writing Your First Objective,” 2020, https://www.What Matters/series_entries/2-1-how-to-write-okr-
objectives, accessed January 2022.
okrs, accessed January, 2022.
op
yo
5 What Matters, “The Science of Key Results,” 2020, https://www.What Matters/series_entries/s3-1-key-result-definition-
6 What Matters, “Going from Good to Better Part 2,” 2020, https://www.What Matters/series_entries/s3-4-okr-key-results-
examples, accessed January, 2022; see also Debbie Roberts, “Does it KLAPS?,” February 23, 2021,
https://dwroberts19.medium.com/does-it-klaps-94966b66a4a1, accessed January, 2022.
7 Debbie Roberts, “Does it KLAPS?,” February 23, 2021, https://dwroberts19.medium.com/does-it-klaps-94966b66a4a1,
accessed January, 2022; see also What Matters, “The Science of Key Results,” 2020, https://www.What
Matters/series_entries/s3-1-key-result-definition-okrs, accessed January, 2022.
8 Mirell Põllumäe, “The Difference Between Committed and Aspirational OKRs,” February 14, 2020,
https://mirelllp.medium.com/the-difference-between-committed-and-aspirational-okrs-9e4e5a6df958, accessed January, 2022;
see also Sam Prince, “Committed vs. Aspirational OKRs: What’s the Difference?” 2020, https://www.What
Matters/faqs/committed-aspirational-okrs-examplesdifference#:~:text=Committed%20OKRs%20are%20just%20that,make%20sure%20they%20get%20done.&text=Aspirational%20
OKRs%2C%20on%20the%20other,like%20the%20world%20to%20look, accessed January, 2022.
tC
9 John Doerr, “Why the Secret to Success is Setting the Right Goals,” speech given in April, 2018 at an official TED conference,
https://www.ted.com/talks/john_doerr_why_the_secret_to_success_is_setting_the_right_goals?language=en, accessed
January, 2022.
10 Rushabh Doshi, “10 Tips for Using OKRs Effectively,” June 18, 2020, https://medium.com/swlh/10-tips-for-using-okrs-
No
effectively-1c9e84161a67, accessed January, 2022; See also Mayank Prabhakar, “All About OKRs,” November 28, 2020,
https://blogs.talentdux.com/all-about-okrs-c6938cc273d9, accessed January, 2022; see also Richard McLean, “4 Key Lessons I’ve
Learned about OKRs,” November 11, 2018, https://mcleanonline.medium.com/4-key-lessons-ive-learned-about-okrs3f4b902ae9f8, accessed January 2022; see also Christina Wodtke, “Cascading OKRs at Scale,” February 16, 2020,
https://cwodtke.medium.com/cascading-okrs-at-scale-5b1335812a32, accessed January 2022; see also Deidre Paknad, “OKR
First Principles,” https://www.workboard.com/blog/okr-success-principles.php, accessed March, 2023.
11 JB, “What is the Difference Between OKR and KPIs? Which One to Use?” April 1, 2020, https://medium.com/is-that-
product-management/what-is-the-difference-between-okrs-and-kpis-which-one-to-use-5288d9495df8, accessed January, 2022;
see also Google Inc, “Google’s OKR Playbook,” 2020, https://www.What Matters/resources/google-okr-playbook, accessed
January, 2022; see also What Matters, “Aligning Your OKRs,” 2020, https://www.whatmatters.com/series_entries/s3-5-okralignment, accessed January 2022; see also Richard McLean, “4 Key Lessons I’ve Learned about OKRs,” November 11, 2018,
https://mcleanonline.medium.com/4-key-lessons-ive-learned-about-okrs-3f4b902ae9f8, accessed January 2022; Rushabh Doshi,
“10 Tips for Using OKRs Effectively,” June 18, 2020, https://medium.com/swlh/10-tips-for-using-okrs-effectively1c9e84161a67, accessed January, 2022; see also Christina Wodtke, Introduction to OKRs (Sebastopol, CA: O’Reilly Media, 2016), p.
5-13.
Do
12 Brianna Hansen, “KPIs vs. OKRs: How They Compare and Why You Need Both to be Successful,” December 5, 2017,
https://www.wrike.com/blog/kpis-vs-okrs-compare-needsuccessful/#:~:text=The%20difference%20between%20KPIs%20and,somewhat%20more%20aggressive%20and%20ambitious,
accessed January, 2022; See also JB, “What is the Difference Between OKR and KPIs? Which One to Use?” April 1, 2020,
https://medium.com/is-that-product-management/what-is-the-difference-between-okrs-and-kpis-which-one-to-use5288d9495df8, accessed January, 2022; see also What Matters, “What is an OKR,” 2020, https://www.What
Matters/series_entries/s1-2-how-do-okrs-work, accessed January, 2022.
14
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
123-081
rP
os
t
A Primer on OKRs
13 David Wilsey, “Using OKRs with Balanced Scorecard,” August, 2019, https://balancedscorecard.org/wp-
content/uploads/2019/08/BSI-Using-OKRs-with-Balanced-Scorecard.pdfm accessed January, 2022; see also Sam Prince, “OKRs
and Balanced Scorecard: What’s the Difference?” 2020, https://www.whatmatters.com/resources/okr-vs-balanced-scorecardbsc, accessed January, 2022.
14 Chris Palmisano, “MBO 2.0: Making Management by Objectives Work for Today,” February 3, 2017,
https://www.khorus.com/blog/mbo-2-0-making-management-by-objectives-work-for-today, accessed January, 2022. See also
Sam Prince, “OKRs and MBOs: What’s the Difference?” 2020, https://www.whatmatters.com/resources/okr-and-mbodifference-between, accessed January, 2022.
15 i-nexus, “Hoshin Kanri – OGSM – OKR: A case of apples and oranges?” August 24, 2021, https://blog.i-nexus.com/hoshin-
kanri-ogsm-okr-apples-oranges-comparison; accessed January, 2022.
op
yo
16 John Doerr, “Why the Secret to Success is Setting the Right Goals,” speech given in April, 2018 at an official TED conference,
Do
No
tC
https://www.ted.com/talks/john_doerr_why_the_secret_to_success_is_setting_the_right_goals?language=en, accessed
January, 2022.
15
This document is authorized for educator review use only by JUANNA JUDITH HULISELAN, Universitas Pelita Harapan until Feb 2025. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860