---
title: "What Is OKR?"
term: "OKR"
description: "OKR — objectives and key results — is a goal-setting framework where teams define qualitative objectives and measure progress with specific, time-bound key results."
date: 2026-07-25T00:00:00.000Z
updated: 2026-07-25T00:00:00.000Z
topics: ["venture-capital"]
source: https://venturecapitaltracker.com/glossary/okr
---

# What Is OKR?

> OKR — objectives and key results — is a goal-setting framework where teams define qualitative objectives and measure progress with specific, time-bound key results.

**OKR** (objectives and key results) is a planning rhythm that pairs inspirational objectives with quantifiable key results — popularized in tech companies and common in venture-backed board reporting.

### How it works

Company-level OKRs cascade: CEO sets three to five objectives per quarter; teams draft contributing KRs. Example objective: "Win mid-market security buyers." Key results: close five $100K+ pilots, ship SSO, cut sales cycle from 90 to 60 days. Scoring is typically 0.0–1.0; many teams target ~70% achievement to preserve stretch goals.

OKRs differ from **KPIs**: KPIs monitor ongoing health (burn, uptime); OKRs drive change in a period. Good OKRs link to the **north star metric** without duplicating every dashboard number.

Cadence includes kickoff, mid-quarter check-ins, and retrospective — often shared with the board minus sensitive HR or M&A items.

### Why it matters

- **Founders:** OKRs reduce thrash when everyone ships urgent requests — if it does not advance a KR, defer it. Avoid tying OKRs directly to compensation every quarter; that encourages sandbagging.
- **Investors:** Pattern of missed OKRs across quarters signals execution gaps; consistent delivery builds confidence to support insider rounds.

### Common mistake

Writing key results as task lists ("Launch feature X") instead of outcomes ("Increase activation from 30% to 45%"). Tasks belong in project plans, not OKRs.

### Related ideas

See also [north star metric](/glossary/north-star-metric), [KPI](/glossary/kpi), [operating plan](/glossary/operating-plan), and quarterly business reviews.

## FAQ

### What is OKR in simple terms?

An objective is what you want to achieve — 'Become the default payroll tool for SMBs.' Key results are measurable outcomes — 'Reach $2M ARR,' 'NPS above 40,' 'Reduce churn to 2%.' Teams review progress weekly or monthly.

### Why does OKR matter?

For founders, OKRs keep growth-stage companies focused when headcount expands. For investors, consistent OKR reporting in board decks shows whether management sets ambitious but trackable goals versus vague vision statements.


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Source: https://venturecapitaltracker.com/glossary/okr