Operations
OKR (Objectives + Key Results)
A goal-setting framework where each Objective (qualitative, ambitious) has 3-5 Key Results (quantitative, time-bound, measurable) used to track progress.
In plain English
Pick a thing you want to be true in 3 months. Write 3-5 numbers that, if you hit them, prove you achieved it. Review weekly.
Example
Objective: Turn first-time users into engaged customers within 14 days. Key Result 1: Activation rate (users who complete the core action) up from 32% to 50%. Key Result 2: Day-14 retention up from 18% to 28%. Key Result 3: Trial-to-paid conversion up from 4% to 7%. Score at quarter-end: 0.0 (miss) to 1.0 (full hit); 0.6-0.8 is the target sweet spot.
Why it matters
OKRs force the team to commit to measurable outcomes rather than vague effort. Done well, they replace the 'we're all so busy' conversation with 'we hit 0.7 on this; here's what we'll change next quarter'. Done badly, they become a quarterly theatre that consumes a week of leadership time.
Common mistakes
- Treating Key Results as a todo list ("ship feature X") rather than measurable outcomes ("feature X drives Y% activation lift")
- Setting too many OKRs — 1-3 objectives per team is the upper limit; more becomes noise
- Cascading OKRs top-down from CEO to ICs (defeats the point — Key Results should be set by the team accountable for them)
- Grading OKRs as performance reviews — kills the willingness to set ambitious objectives next time
- Quarterly review only — the discipline is in the weekly tracking, not the quarter-end report