Objectives and key results (OKRs)

What is an OKR?

Objectives and key results (OKRs) are a goal system that pairs a qualitative objective with a few measurable results that show whether it was met. The objective says where the team is going. The key results say how everyone will know it got there. Andy Grove developed the approach at Intel by adapting management by objectives, and John Doerr introduced it to Google's founders in 1999.

Why it matters to a revenue leader

OKRs give a revenue leader a way to set goals that a quota cannot express, such as opening a new vertical or fixing the handoff from sale to first service visit. They also make priorities visible across sales and operations, which matters in a services company where field teams deliver what sellers promise. If OKRs and the comp plan point in different directions, sellers will follow the comp plan.

A mechanical services company sets one objective for the year, which is to win a foothold in healthcare facilities. Its key results are 12 new hospital service agreements and $1.5M in new recurring revenue from the segment. At midyear it has 7 agreements and $0.6M, so leadership can see the gap with six months left to close it.