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How to Write Effective OKRs (Step-by-Step Guide)

We share tips on how to write effective OKRs that will drive success for your startup.

Steven Macdonald
4 Mins read
February 20, 2025
How to Write Effective OKRs (Step-by-Step Guide)

Objectives and Key Results (OKRs) are one of the most effective tools for driving focus, alignment, and growth within your organization. 

When written correctly, OKRs help you and your team stay on track, measure progress, and achieve ambitious goals. 

But writing clear and impactful OKRs is an art - one that requires understanding what makes a good objective and how to break it down into measurable key results.

In this guide, we’ll walk you through how to write effective OKRs that will drive success for your startup. 

Whether you're new to OKRs or looking to improve your goal-setting process, this step-by-step approach will help you create objectives that your team can rally around and deliver on.

1. Start with the Big Picture: Write Meaningful Objectives

The first step in writing effective OKRs is crafting clear, meaningful Objectives. 

Objectives are the “what” you want to achieve and should be inspiring, qualitative, and aligned with your business's overall vision.

Tips for Writing Good Objectives:

  • Be Ambitious, but Realistic: Your objectives should push your team to reach higher, but they should still be achievable with hard work and dedication.

  • Make Them Actionable: Objectives should describe a goal that is achievable and impactful, not something vague like "become a leader in the industry.”

  • Align with Company Goals: Make sure your objectives are aligned with the broader mission of your company, so they directly contribute to your overall success.

  • Keep it Simple: Objectives should be straightforward, easy to understand, and focused. Avoid long-winded, complex descriptions.

Example of a Good Objective:

“Increase customer engagement across digital channels”

This objective is clear, motivating, and aligned with the business goal of improving user retention.

2. Break Down Objectives into Key Results

Once you have a strong objective, it’s time to define the Key Results. 

Key Results should be specific, measurable, and focused on the outcome rather than the output. They provide a clear way to track progress and measure whether the objective has been achieved.

Tips for Writing Effective Key Results:

  • Quantitative and Measurable: Key Results should include numbers, percentages, or milestones that can be tracked easily.

  • Focus on Impact: Rather than focusing on tasks, think about the outcomes that will demonstrate success. What does success look like for this objective?

  • Time-Bound: Set deadlines and ensure that Key Results are achievable within a specified time frame.

  • Avoid Vagueness: Key Results should leave no room for interpretation. A result like “improve user experience” isn’t specific enough. Instead, “Increase user satisfaction score by 15%” is clear and measurable.

Example of Good Key Results:

  • Increase website traffic by 30% in the next quarter.
  • Boost average customer satisfaction score from 70% to 85%.
  • Achieve 10% growth in customer retention month over month.

These Key Results are measurable, focused on outcomes, and have clear targets to hit.

3. Align OKRs Across Teams

Effective OKRs should be aligned vertically (with company-wide goals) and horizontally (across different teams). 

This alignment ensures that everyone is working toward the same overarching objectives and that every department understands how their work contributes to the larger mission.

How to Align OKRs Across Teams:

  • Ensure Top-Down Alignment: Company-level objectives should trickle down to team and individual OKRs. Each team should see how their OKRs contribute to the overall strategy.

  • Encourage Cross-Team Collaboration: Make sure teams understand how their efforts impact other teams. Cross-team OKRs ensure coordination, especially when goals overlap.

  • Set Team-Specific OKRs: Different teams may have different objectives based on their specific functions (marketing, sales, product development, etc.). While they should align with the broader company goals, their OKRs should be tailored to their specific impact areas.

Example of Alignment:

  • Company Objective: “Increase customer engagement across digital channels”
  • Marketing Team Key Result: “Grow email open rates by 20%”
  • Product Team Key Result: “Improve product feature adoption by 25%”

Each team’s Key Results support the larger company objective, ensuring that everyone is moving in the same direction.

4. Focus on a Few Key Objectives

It’s easy to get carried away and set a lot of objectives, but it’s important to keep your OKRs focused. 

As a startup, especially, you need to prioritize the most impactful and urgent goals to ensure that the team doesn’t spread itself too thin.

Tips for Staying Focused:

  • Limit the Number of OKRs: Aim for 3-5 key objectives per cycle. Too many OKRs can lead to dilution of focus, making it harder to achieve meaningful results.

  • Choose Key Areas of Impact: Focus on the areas that will have the most significant impact on your company’s growth. Whether it's improving customer satisfaction, increasing revenue, or growing market share, pick areas that align with strategic priorities.

  • Review and Adjust: At the end of each cycle, evaluate which OKRs worked and which didn’t. Use these insights to refine future objectives and Key Results.

Example:

Instead of setting multiple objectives like:

  • “Increase sales revenue”
  • “Improve customer support”
  • “Enhance website experience”

For startups, I recommend that you focus on one top priority, such as:

  • “Increase sales revenue by 25%” with clear, measurable Key Results tied to sales activities.

5. Review and Update Regularly

OKRs are not a set-it-and-forget-it tool. 

They should be reviewed regularly to ensure that you’re on track and making progress. At a startup, things move quickly, and objectives may need to be adjusted based on new insights or shifts in priorities.

Tips for Effective OKR Reviews:

  • Regular Check-Ins: Schedule weekly or bi-weekly OKR reviews to track progress and make adjustments as needed.

  • Use Metrics: Rely on data to measure your progress toward each Key Result. If a Key Result isn’t progressing as planned, discuss why and adjust your actions.

  • Involve the Team: OKR reviews should be collaborative. Make sure everyone knows where they stand and has the opportunity to contribute ideas for improvement.

6. Make OKRs Transparent

Transparency is key for ensuring that everyone is aligned and working towards the same goals. Share OKRs with the whole team, so everyone knows what others are working on and how their contributions impact the company’s success.

Why Transparency is Important:

  • Builds Accountability: When people can see their own OKRs as well as their team members’, it builds a sense of responsibility to meet objectives.

  • Increases Engagement: When people understand the bigger picture, they are more motivated to contribute to the company’s success.

  • Enables Collaboration: Teams can collaborate more effectively when they know what others are working on and how they can support each other.

7. Keep OKRs Flexible and Adaptable

While OKRs provide direction and structure, it’s important to remain flexible. 

As your startup grows, market conditions change, and new challenges arise. Having the ability to adapt your OKRs ensures that you stay on track, even when things don’t go as planned.

Tips for Flexibility:

  • Be Open to Adjustments: If a Key Result isn’t delivering the expected impact, consider adjusting it to better reflect current business priorities.

  • Iterate Based on Learnings: Use insights from past OKR cycles to inform and refine future objectives. Continuous improvement is key to long-term success.

  • Respond to Changes: If there are shifts in the business landscape - such as customer feedback or unexpected opportunities - be prepared to tweak your OKRs to stay aligned with new realities.

Example:

If you set an objective to increase sales by 20%, but halfway through the quarter, your market research shows that the approach needs tweaking, adapt the key results to focus on new, actionable steps - such as increasing lead conversion rates or refining your product offering.

Being adaptable will help your team stay agile and continue pushing forward, even when the unexpected happens.

Use OKR Software for Efficient Tracking and Alignment

OKR software can significantly enhance your ability to track and manage OKRs with minimal effort. By using the right software, you’ll streamline your goal-setting process, maintain visibility, and ensure your team stays on track.

Tips for Using OKR Software Effectively:

  • Centralize Tracking: Use OKR software to consolidate all your goals, progress, and updates in one place. This eliminates the need for scattered spreadsheets or emails and keeps everyone aligned.

  • Automate Updates: Many OKR tools allow for automated progress tracking. This means you don’t have to manually update each goal, saving time and ensuring that data is always accurate.

  • Real-Time Visibility: With OKR software, you can track progress in real-time, making it easier to catch any issues early on and adjust your strategy if needed.

  • Collaborate with Ease: The best OKR software allows you to share updates and communicate progress directly within the software, fostering collaboration and keeping everyone on the same page.

For example, with OKRs Tool, you can easily set OKRs across teams, see progress in real time, and ensure that everyone’s efforts are aligned with company goals. 

The platform provides a clear overview of how each team is performing, making it easier to adjust and pivot when necessary.

Using OKR software simplifies the process of setting, tracking, and refining your OKRs, freeing up your team’s time to focus on execution and growth.

Recommend reading: 5 of the best Free OKR software tools

Conclusion

Writing effective OKRs can transform your startup by giving your team a clear direction, measurable progress, and a sense of purpose. 

By following these best practice tips - setting ambitious objectives, creating specific key results, aligning across teams, staying focused, reviewing regularly, and staying flexible - you can ensure that your OKRs drive success.

Start small, stay focused, and as your startup grows, refine and expand your OKRs to continually align and push your team towards greater success. 

Ready to start writing your own OKRs? 

Get started with OKRs Tool now to streamline your goal-setting process. With AI-driven features and an easy-to-use platform, OKRs Tool helps you set clear objectives, track progress, and align your team to achieve your growth goals.