What are objectives and key results (OKRs)—and how to use them

When you're leading a cross-functional product team on a tight deadline, the stakes are high—and you need a clear plan everyone can rally around. Setting OKRs (objectives and key results) can help you define success and chart the way forward. But how can you use OKRs effectively, and what tools can help you apply them to your project?

Read on to find out:

• What OKRs are, and how they can help you set project milestones—and reach stretch goals
• Benefits of OKR framework
• How to set team OKRs in 3 steps, using FigJam OKR tools

What are OKRs?

The OKR (objectives and key results) management methodology has been widely used since the 1970s, when Intel CEO Andy Grove launched Management by Objectives (MBOs). Intel's John Doerr introduced the OKRs concept to Sergey Brin and Larry Page, who used the goal-setting framework to drive Google's success. Metrics are key in the OKR methodology—as Doerr puts it, strategists need to "measure what matters."

An OKR consists of two parts:

• Objective: This is a clearly defined, ambitious, and inspirational goal that sets the direction, and gives your team a sense of purpose. Your objective should answer the question: "Where do I want to go?"
• Key Results: These measurable indicators help you track progress towards your objective. They are specific, time-bound, and ambitious, but realistic. Key results should answer the question: "How do I know if I'm getting there?"

4 benefits of OKRs for design and product teams

How do OKRs work for design and product teams? Effective implementation of OKRs can yield benefits company-wide and at the team level, including:

• Enhanced team collaboration. OKRs help you align individual creativity with team objectives and shared vision at the company level.
• Increased accountability. OKRs empower project leads to track team progress toward measurable goals.
• Improved focus. OKRs provide top-down alignment around strategic goals, focusing team efforts on high-impact tasks.
• Continuous learning and improvement. OKRs help teams assess which areas need more focus or added resources to achieve desired outcomes. Check-ins and ongoing employee engagement give everyone a chance to contribute to success.

OKR vs KPI

Like OKRs, Key Performance Indicators (KPIs) are helpful goal-setting tools—but they serve different purposes.

• KPIs track the performance of ongoing activities, monitoring the health of your current operations. For example, a design team might track KPIs like "number of design iterations" or "time spent on design revisions."
• OKRs focus teams on ambitious, future-oriented goals, helping you break away from the status quo and grow. In short: KPIs help you keep the lights on, while OKRs light your path to future growth.

How to write OKRs in 3 steps

Creating good OKRs requires careful planning, but it doesn't have to be difficult. Check out FigJam OKR examples, and invite project team members and stakeholders to help fill out the template. Pro tip: OKRs should involve representatives from across the organization to make sure everyone is working towards the same long-term goal. To craft impactful OKRs, use this step-by-step guide.

Step 1: Define your objectives.

Get your team involved from the start with a goal-setting exercise. Brainstorm team SMART goals, making them specific, measurable, achievable, relevant, and time-bound. Be sure each objective ties back to your company goals. A design team might set this objective: "By the end of Q3, design an intuitive and user-friendly mobile app interface that increases customer engagement by 15%."

Step 2: Identify key results.

Establish 2–5 key results or metrics to measure your progress toward your objective. These should be outcome-focused, measurable, and within your circle of influence.

For instance, if a design team's objective is to "improve app user interface for enhanced user experience," the key results may include:

• "Reduce the average loading time by 20%."
• "Increase the click-through rate by 15%."
• "Achieve an app store rating of 4.5 or above."
• "Reduce user-reported issues with the interface by 30%."

Step 3: Plan for success.

Work with your team to define initiatives or tasks that drive key results. These should be specific actions or projects that will help you achieve your OKR goals.

Using the app example above, your initiatives could include:

• "Conduct user testing sessions to identify areas of improvement."
• "Collaborate with the development team to resolve identified issues."
• "Gather and implement user feedback to improve the interface."

Set up regular check-ins for initiatives across your OKR cycle. Check-ins help you review progress on current initiatives, discuss new ones, and provide bottom-up feedback to adjust team strategies as needed.

Committed vs aspirational OKRs

OKRs are often categorized into two types: committed and aspirational.

1. Committed OKRs are outcomes that are expected to be achieved 100%. They are usually tied to the core functions of a business and are crucial for its success. "Improve app performance to ensure 99.9% uptime" is an example of a committed OKR.
2. Aspirational OKRs (aka "moonshot" OKRs) push boundaries to achieve ambitious business goals. They're not expected to have a 100% achievement rate, hitting an ideal grade between 60% and 70%. Consistently hitting 100% indicates that your aspirational goals aren't ambitious enough—it's time to think bigger. "Win the best design award at a recognized industry event" is an aspirational OKR that may inspire teams to innovate, stretching their capabilities to new heights.

Jumpstart your OKRs with FigJam

No matter what you're aiming to achieve, FigJam OKR templates give you a head start on an OKR process to define and meet your goals. Brainstorm ideas using a FigJam online collaborative whiteboard, and use interactive plug-ins like cursor chat, emoji, and polls to capture team feedback. For further inspiration, check out OKR templates and strategic planning resources from Figma's design community.

Ready to align efforts and achieve results?