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Product Management

How to Create OKRs

Learn how to write effective OKRs that focus your team and drive real results. Includes the OKR framework, examples, and common mistakes to avoid.

7 steps

  1. Understand the OKR framework

    OKRs consist of an Objective (a qualitative, inspiring goal) and 2–4 Key Results (quantitative, measurable outcomes that prove progress toward the objective). The Objective answers "where are we going?" and Key Results answer "how do we know we are getting there?"

    Pro tip

    The simplest test: "We will achieve [Objective] as measured by [Key Results]." If that sentence makes sense, your OKR is well-formed.

  2. Start with company-level objectives

    Before teams write their OKRs, leadership must define 3–5 company-level objectives for the quarter. These become the anchor for all team OKRs. Without clear company OKRs, teams optimize for local goals that may not move the business.

  3. Write objectives that are ambitious but clear

    Good objectives are short (under 10 words), inspiring, and time-bound to the quarter. They describe a meaningful outcome, not a task. "Launch the enterprise tier" is a task. "Establish Inktrail as the preferred workspace for enterprise teams" is an objective.

  4. Define measurable key results

    Each key result must have a numeric target and a current baseline. "Increase NPS from 34 to 52" is a good key result. "Improve user satisfaction" is not. Aim for 2–4 key results per objective — more than 4 dilutes focus.

    Pro tip

    If you can mark a key result as done/not done rather than measuring it, it is an output (task), not an outcome (result). Rewrite it.

  5. Cascade OKRs from company to team level

    Each team's objectives should directly support one or more company objectives. Teams should have input into their own OKRs — top-down mandates without team involvement produce compliance, not commitment.

  6. Run weekly check-ins throughout the quarter

    Schedule a 30-minute weekly OKR check-in for each team. Update key result progress, surface blockers, and adjust plans. OKRs tracked only at quarter-end are decorative — they need weekly attention to drive behavior.

  7. Grade and reflect at quarter end

    Score each key result 0.0–1.0. A score of 0.6–0.7 is considered success — if you are consistently scoring 1.0, your OKRs are not ambitious enough. Hold a retrospective on what drove strong and weak results before writing next quarter's OKRs.

Start with a free AI template

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Frequently asked questions

How often should OKRs be set?

Most companies set OKRs quarterly, with annual company-level OKRs providing broader direction. Quarterly cycles are short enough to stay relevant and long enough to complete meaningful work. Monthly OKRs are too frequent for most teams.

What is the difference between OKRs and KPIs?

KPIs (Key Performance Indicators) measure ongoing business health — they are always on. OKRs are time-bound and describe where you want to improve. KPIs track the dashboard; OKRs drive the sprint.

How many OKRs should a team have?

A team should have 3–5 objectives per quarter, each with 2–4 key results. That is 6–20 key results total. More than that means the team has no real focus and will struggle to make meaningful progress on any of them.