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What Are OKRs? Definition, Examples (Free Founder Guide)

New to OKRs? We break down exactly how to set goals that actually move the needle - with examples, tips, and common pitfalls.

Steven Macdonald
8 Mins read
June 15, 2025
What Are OKRs? Definition, Examples (Free Founder Guide)

OKRs (Objectives and Key Results) are a goal-setting framework used by high-performing teams to align actions with outcomes. Popularized by Google, OKRs help teams stay focused, measure what matters, and iterate quickly.

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Why OKRs Changed How Our Team Works

When I first came across OKRs as a method to align our team's goals, it completely changed the way we worked.

But I’ll be honest, it wasn’t smooth sailing. 

I remember feeling overwhelmed by all the terminology and frameworks that came with setting effective OKRs. It took me a while to truly understand the importance of having clear, measurable goals that aligned with the company's vision - and how OKRs could help guide us. 

But once I understood the basics, it all clicked, and our team became far more aligned and focused.

So, what exactly are OKRs? 

And how can you leverage them to drive your business forward?

Let’s find out.

📘 Download the Free Founder’s Guide to OKRs — no email, just a battle-tested startup toolkit.

Definition: What Does OKR Stand For?

OKRs = Objectives + Key Results

Objective: What you want to achieve

Key Results: How you measure success

Used by Google, Spotify, and thousands of startups, OKRs create clarity and momentum.

The Objective: What You Want to Achieve

An objective is a clear, concise statement of what you want to achieve. It should be ambitious yet achievable and should align with your company’s overall strategy. 

The objective serves as the "what" in the OKR process.

It provides direction and focus, helping your team know exactly what they are working toward.

Examples of Objectives:

  • Increase revenue by 30% this quarter.

  • Launch a new product feature by the end of the month.

  • Improve customer satisfaction by 20% this quarter.

Each of these objectives is specific and measurable, making it clear what success looks like. 

These objectives need to be followed up with key results - the specific metrics that will measure your progress toward achieving them.

Key Results: How You Will Measure Success

Key results are the concrete, measurable outcomes that indicate whether or not you’ve achieved your objective. 

Key results are the "how" you measure progress and success. 

They should be quantifiable, time-bound, and clearly linked to the objective. Key results help keep teams focused on what matters most and ensure that progress is being tracked along the way.

Track progress with OKRs Tool

Examples of Key Results:

  • Increase new customer sign-ups by 25% in the next quarter.

  • Reduce product load time by 30% by the end of the month.

  • Achieve a 90% customer satisfaction score on post-purchase surveys.

These key results provide specific, measurable targets that give the team a clear indication of success. Key results are the benchmarks that help measure how much progress has been made toward achieving the objective.

At this stage, most startups ask the same question:

How many key results should you add?

When it comes to key results, quality always outweighs quantity. 

For each objective, 3-5 key results is the sweet spot

Here’s why:

  • Focus: Too many key results can dilute your focus and make it harder to track progress. Keeping it to 3-5 ensures that each key result is meaningful and directly contributes to the objective.

  • Clarity: A smaller number of key results makes it easier to measure progress. If you have too many, it becomes challenging to evaluate success or identify what’s truly driving results.

  • Accountability: Fewer key results mean that your team has clear, actionable targets. This allows for better accountability and a more manageable process for achieving the objective.

Stick to 3-5 key results for each objective, and you’ll keep your focus sharp and your team aligned!

How Objectives and Key Results Work Together

The objective is the goal you want to achieve, and the key results are the ways you measure progress toward that goal. Together, they form a clear and actionable roadmap. 

While the objective gives the vision and motivation, the key results provide the structure and accountability needed to get there.

Objective: Increase Revenue by 30% This Quarter

KR 1: Achieve 25% growth in new customers

KR 2: Increase average deal size by 15%

KR 3: Launch a referral program and onboard 100 new users.


For example, if your objective is to “Increase revenue by 30% this quarter,” your key results might include:

  • Achieve 25% growth in new customers.

  • Increase average deal size by 15%.

  • Launch a referral program and onboard 100 new users.

Each key result measures a distinct part of the objective, and when you hit these key results, you’ll know you’ve accomplished your objective.

When OKRs are effectively aligned and implemented, they have a powerful impact on startup growth. They provide teams with a clear sense of direction, fostering collaboration and motivating everyone toward common goals. 

Startups that successfully use OKRs report measurable benefits across multiple areas of their operations. According to our own survey of 100 startup founders, OKRs have led to:

  • Improved cross-functional alignment (27.75%)

  • Made performance reviews easier (27.75%)

  • Helped us hit revenue milestones faster (18.85%)

  • Increased team engagement (24.61%)

These results highlight how OKRs drive tangible improvements that accelerate growth, increase engagement, and streamline processes within startups.

Now, let’s take a look at some OKR examples to see how they work in practice and understand how to set them up effectively for your team.

OKR Examples: Understanding How They Work in Practice

Let’s take a closer look at a real OKR example to see how the framework operates in practice. Understanding this will give you the clarity needed to apply OKRs effectively within your own organization.

Example of an Effective OKR

Objective: Increase Customer Acquisition by 25% This Quarter

KR 1: Achieve a 20% increase in new user sign-ups on the website.

KR 2: Launch a referral program and gain 150 new customers with it.

KR 3: Increase website conversion rate by 15% through improved landing page design.

Objective: Increase customer acquisition by 25% this quarter.

Key Results:

  • Achieve a 20% increase in new user sign-ups on the website.

  • Launch a referral program and gain 150 new customers through it.

  • Increase website conversion rate by 15% through improved landing page design.

Why This OKR Works:

This OKR works because it clearly articulates what the organization wants to achieve (the objective: increasing customer acquisition), and it breaks that down into specific, measurable outcomes (the key results).Here’s how this benefits the organization:

  1. Clear Direction: The objective is clear and aligned with a key growth goal - customer acquisition. It provides focus for the team, ensuring that everyone knows that their primary goal this quarter is to bring in more customers.

  2. Measurable Key Results: The key results are specific and quantifiable - metrics like new user sign-ups, referral program success, and conversion rate improvements allow the team to track progress and understand whether they’re hitting their targets.

  3. Actionable: The key results provide actionable steps - such as launching a referral program and optimizing the website’s landing pages - that give the team clear tasks to focus on. These are practical steps that drive toward achieving the objective.

  4. Impact on the Organization: By setting this OKR, the team aligns around one of the most important drivers of startup success - acquiring new customers. It’s measurable, actionable, and impactful, providing a clear path to organizational growth.

Good OKR Examples for Early-Stage Startups

For early-stage startups, OKRs need to be focused on high-impact areas that will help drive growth, customer satisfaction, and internal efficiency. 

Here are a few good examples of OKRs tailored to the needs of a growing startup:

Objective: Launch a new product feature that meets customer demand.

Key Results:

  • Complete product design and testing by the end of the month.

  • Gather feedback from 50 beta users and iterate based on their responses.

  • Achieve a 20% adoption rate of the new feature within the first month of launch.

Objective: Build a scalable marketing strategy for growth.

Key Results:

  • Increase organic traffic by 30% by optimizing SEO on the website.

  • Gain 1,000 new email subscribers through targeted content campaigns.

  • Launch 3 paid advertising campaigns and achieve a return on ad spend (ROAS) of 3:1.

Objective: Improve customer retention by enhancing user experience.

Key Results:

  • Reduce customer churn by 10% through improved onboarding and support.

  • Achieve a Net Promoter Score (NPS) of 60 or higher from current users.

  • Implement a customer feedback loop and resolve 90% of issues within 48 hours.

These examples work because they are specific, measurable, achievable, and directly tied to the company’s growth priorities. They focus on outcomes that are high-priority for early-stage startups, such as product development, marketing, and customer retention.

Bad OKR Examples for Early-Stage Startups

On the other hand, poorly written OKRs can cause confusion, misalignment, and lack of focus. Below is an example of bad OKRs for early-stage startups:

Objective: Improve Sales

KR 1: Increase the sales team's performance.

KR 2: Improve product features.

KR 3: Have more customer calls.


Objective:
Improve sales.

Key Results:

  • Increase the sales team's performance.

  • Improve product features.

  • Have more customer calls.

Why is this a bad OKR? It lacks clarity and specific, measurable targets. 

The key results are vague and don’t provide any quantifiable outcomes. “Increase the sales team's performance” is not a specific, measurable key result - it doesn’t say how much performance is expected to increase, and it lacks any deadlines. 

Similarly, “Have more customer calls” doesn’t explain the desired outcome or impact. Effective OKRs should have specific numbers tied to them to track progress.

Good OKR Bad OKR
Objective: Improve customer retention
KR 1: Reduce churn by 10%
KR 2: Achieve NPS of 60+
KR 3: Resolve 90% of issues in 48 hours
Objective: Improve sales
KR 1: Improve sales team's performance
KR 2: Improve product features
KR 3: Have more customer calls
✅ Measurable
✅ Time-bound
✅ Aligned with business goals
❌ Vague
❌ No metrics
❌ No clear deadline

12 Practical OKR Examples for Startups

Setting the right OKRs can be the difference between scattered efforts and strategic momentum. Whether you're focused on growth, product development, or scaling your team, clear OKRs help everyone stay aligned and accountable.

To help you get started, we’ve curated 12 startup-focused OKR examples across key business functions like acquisition, revenue, fundraising, and more.

Explore the full list below - each slide features a startup-friendly Objective with 3 actionable Key Results you can adapt for your own team:

🎯 Ready to Try OKRs for Your Startup?

We've created a free, easy-to-use Google Sheets OKR Template you can copy and start using immediately.

  • ✅ Pre-formatted for quarterly OKRs
  • ✅ Includes sections for Objectives, Key Results, Scoring, and Initiatives
  • ✅ Built for startup teams — no fluff

📥 Get the Free OKR Template

With that in mind, understanding the key terms related to OKRs is essential for setting up a clear and effective goal-setting framework. Let’s dive into some important OKR terminology to help you get started.

OKRs Glossary: Key Terms Related to OKRs

When you’re first diving into the world of OKRs, it’s easy to get lost in the jargon. 

There are many terms and concepts that are integral to understanding how OKRs work, and it can feel overwhelming if you’re not familiar with the terminology. That’s why we’ve created this glossary - to give you clear, simple definitions for OKR-related terms. 

Understanding these terms will help you understand the OKR process more confidently and ensure that you’re using the framework to its fullest potential. 

Whether you’re getting started or refining your existing OKRs, having a solid grasp of the vocabulary - and context - is key to implementing them effectively.

Term Definition
Alignment Ensures company goals and strategies are in sync across all levels, reducing confusion and increasing collaboration.
Key Results Measurable outcomes that break down objectives into specific, quantifiable milestones of success.
OKR Cycle The recurring timeframe (usually quarterly or annually) for setting, reviewing, and adjusting OKRs.
Stretch Goal An aspirational, difficult-to-achieve objective that encourages teams to go beyond the expected.
Transparency Making OKRs visible across the organization to increase trust, alignment, and accountability.
Progress Tracking Monitoring key results over time to ensure continued progress and alignment.
Goal-Setting Framework A structured approach like OKRs to break down and measure progress toward goals.
Key Performance Indicators (KPIs) Ongoing metrics used to assess performance; often complement OKRs by measuring operations.
Quarterly OKRs OKRs set for a 3-month cycle to achieve focused, time-sensitive goals.
Cascading OKRs Breaking down company-wide OKRs into aligned team and individual objectives.
Cross-Functional OKRs OKRs shared by multiple departments that require collaboration to succeed.
OKR Software A platform used to create, manage, and track OKRs across teams and departments.
Review Cycle The periodical evaluation of OKR progress to make adjustments and ensure focus.
Check-In A recurring review process to assess OKR progress and re-align if needed.
Adjustment Mid-cycle changes to OKRs in response to shifting priorities or challenges.
Outcome The actual impact or result of achieving OKRs, distinct from tasks completed.
Scoring A scale (typically 0–1) used to measure how successfully key results were achieved.
Top-Down / Bottom-Up Top-down = leadership-led OKRs; bottom-up = team-driven OKRs aligned with strategic goals.
Reflection A post-cycle process where teams evaluate what worked, what didn’t, and how to improve future OKRs.
Metrics Quantitative data points used to track progress toward key results and assess performance.
Initiatives The specific projects or actions undertaken to drive progress toward achieving OKRs.

Final Thoughts

OKRs aren’t just a goal-setting framework - they’re a way to bring structure, clarity, and momentum to your startup’s growth. But like any tool, they only work if you use them with intention.

Start small. Focus on what matters. Make it a habit.

The best OKRs aren’t perfect - they’re practical. They help your team stay aligned, move faster, and learn as you go. Whether you’re launching your first OKR cycle or refining your tenth, remember: progress comes from clarity, not complexity.

Let this be your starting point. Test, reflect, and iterate. Because the real power of OKRs isn’t just in what you set - but in how your team grows together while chasing them.

📘 Download: The Founder’s Field Guide to OKRs

New to OKRs? This practical, no-fluff guide walks founders and startup teams through setting (and sticking to) goals that actually move the needle.

  • ✅ Understand OKRs in plain English
  • ✅ Avoid the 5 mistakes that kill momentum
  • ✅ Fill-in-the-blank templates to get started fast
  • ✅ 12 real OKR examples from product, marketing, and growth
📥 Get the Free Founder’s Guide →

No email required. No fluff. Just a battle-tested toolkit that works.