Definition
A goal-setting framework that defines objectives (what you want to achieve) and key results (measurable outcomes that indicate progress toward the objective). OKRs are typically set quarterly and cascade from organisational goals to team and individual levels.
UK Context
While OKRs originated in Silicon Valley, they are increasingly adopted by UK organisations across sectors. The CIPD recognises OKRs as an effective alternative to traditional annual objective-setting, particularly in fast-moving environments. OKRs complement UK performance management practices by providing more frequent goal alignment and progress tracking.
Best Practices
- Set three to five objectives per quarter with two to four key results per objective
- Ensure key results are measurable and time-bound, not activity-based
- Conduct regular check-ins (weekly or fortnightly) to track progress and remove blockers
Frequently Asked Questions
What is the difference between OKRs and KPIs?
OKRs are aspirational goals that drive change and improvement, typically set quarterly. KPIs are ongoing metrics that measure business-as-usual performance. OKRs answer 'what do we want to achieve?' while KPIs answer 'how is the business performing against steady-state targets?'
Should OKRs be linked to pay?
Best practice suggests OKRs should not be directly linked to pay, as this discourages ambitious goal-setting. Employees will set conservative targets if they know missing them affects their bonus. OKRs should be one input into overall performance assessment, alongside other factors.