Objective Key Results (OKRs)

Explained in plain English

Set clear, inspiring goals and track them with hard numbers using Objectives and Key Results (OKRs).

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Objective Key Results (OKRs)

definition in plain English

Objectives and Key Results—usually shortened to OKRs—form a two-layer goal-setting method popularised by John Doerr in Measure What Matters. First you write an Objective: a short, inspiring statement of what you want to achieve. Then you list the Key Results that will prove you have achieved it. When every key result is met, the objective is considered done.

What an objective is

An objective answers “Where do we want to be?” It must be qualitative and motivational—something a team can rally round. “Dominate the UK mid-market accounting niche” or “Become the most trusted data-privacy advisor for SaaS founders” work far better than “Increase revenue” because they paint a picture of success.

What key results are

Key results translate that picture into numbers. They are specific, time-boxed, and binary: you either hit them or you do not. To support “Dominate the UK mid-market accounting niche”, a bookkeeping agency might track:

  • Sign 40 new clients with £1 m–£20 m turnover by 31 December.
  • Lift client retention from 88 % to 94 %.
  • Achieve an average Trustpilot score of 4.7 across 200 reviews.

If any key result fails, the objective remains unfinished—even if every other metric looks healthy.

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Why it matters

Focuses effort on what truly moves the needle

With only one or two objectives per quarter, teams stop scattering energy across low-value tasks. A digital agency might park minor site refreshes so designers can concentrate on the key-result metric “Launch five case-study microsites generating 500 demo views”.

Creates transparent accountability

Everyone sees the same scoreboard and knows exactly how success is measured. When a law firm sets “Win 90 % of GDPR compliance tenders” as a key result, junior associates and senior partners share a single, indisputable target.

Speeds decision-making and alignment

When disagreements arise—should you attend a trade show or finish an integration?—teams ask, “Which option advances the objective?” The bookkeeping agency above would skip an unrelated expo if it does not help sign mid-market clients.

How to apply

Objective Key Results (OKRs)

(with pitfalls & tips)

Choose one high-impact objective per team

Pick a horizon of one quarter for operational teams or one year for strategic leadership. The objective must be qualitative and memorable—no metrics yet.

B2B examples

  • Creative agency: “Become the go-to brand studio for funded climate-tech start-ups.”
  • Law firm: “Earn a national reputation as the fastest GDPR compliance partner.”
  • Bookkeeping agency: “Own the finance back office for UK mid-market SaaS.”

Test the wording with the team; if people struggle to recall it, shorten or sharpen.

Set three to five measurable key results

Key results should:

  1. Measure outcomes, not tasks. “Publish four LinkedIn posts” is activity; “Gain 1 000 qualified followers” is outcome.
  2. Be time-bounded. Attach a clear finish date so progress is unambiguous.
  3. Sit just outside comfort. 70–80 % attainment indicates healthy stretch.

Agency illustration

  • Launch five case-study microsites generating 500 demo views by 30 June.
  • Increase average proposal close rate from 24 % to 35 % by quarter-end.
  • Secure two speaking slots at leading climate-tech events before Q3.

Cascade—or don’t—depending on company size

Small B2B firms (under 30 staff) often thrive with a single company-level OKR. Larger organisations cascade: leadership sets one objective, and each department writes supporting OKRs. Example cascade for the law firm:

Company objective – “Fastest GDPR partner.”

Marketing key result – “Rank #1 in Google for ‘GDPR compliance service’ by December.”

Delivery key result – “Cut average first-draft turnaround from 12 days to 6.”

Sales key result – “Close 90 % of tenders within 45 days.”

Link each departmental key result to the overarching objective to avoid silo drift.

Track progress weekly and grade quarterly

Create a simple 0–1 scoring: where 0 = no progress and 1 = fully hit. If halfway through the quarter the bookkeeping agency’s “40 new clients” metric sits at 0.45 (18 wins), they know they must average seven per fortnight rather than five to catch up. Use colour codes on dashboards—green (0.7-1), amber (0.4-0.7), red (below 0.4)—to convey status at a glance.

Review, learn, and iterate

At quarter-end run a retrospective:

  • Which key results missed and why?
  • Did we stretch too far or not far enough?
  • What blockers appeared that we can remove next cycle?

If the law firm achieves 88 % of tenders won but retention lags, next quarter’s OKR may pivot to client-experience improvements rather than pure speed. Carry forward unfinished objectives only if they remain the highest-impact levers; otherwise archive and reset focus.

Conclusion

OKRs turn lofty ambition into measurable execution. By framing a single, inspiring objective and tying it to a handful of binary key results, agencies, consultancies, law firms, and bookkeeping firms gain laser focus, faster decisions, and transparent accountability—exactly the working-smarter discipline that unlocks sustainable growth.

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