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OKR (Objectives and Key Results)

Definition

A goal-setting framework popularized by Intel and Google. An Objective is a qualitative, inspiring goal; Key Results are 2-5 quantitative measures that define success for that objective. OKRs are typically set quarterly and cascaded across the organization. PMs use OKRs to communicate desired outcomes (not outputs), align teams, and create accountability without micromanaging how work gets done.

Why It Matters for Product Managers

Understanding okr is critical for product managers because it directly influences how teams prioritize work, measure progress, and deliver value to users. PMs use OKRs to communicate desired outcomes (not outputs), align teams, and create accountability without micromanaging how work gets done. Without a clear grasp of this concept, PMs risk making decisions based on assumptions rather than evidence, which can lead to wasted engineering effort and missed market opportunities.

How It Works in Practice

Teams typically implement this framework by following a structured process:

  • Introduce — Share the framework with the team, explaining the problem it solves and when it is most useful.
  • Calibrate — Run a practice session with a small set of real examples so the team develops a shared understanding of how to apply it.
  • Apply — Use the framework on actual backlog items, roadmap decisions, or discovery questions during a dedicated working session.
  • Review — After a cycle (sprint or quarter), evaluate whether the framework produced better outcomes and adjust how the team uses it.

    • The goal is not to follow okr dogmatically but to use it as a thinking tool that brings structure to decisions that would otherwise rely on gut feel.

    Common Pitfalls

  • Applying the framework mechanically without understanding the reasoning behind each step.
  • Using the framework as a substitute for product judgment rather than as an input to decisions.
  • Skipping calibration sessions, which causes inconsistent scoring or categorization across the team.

    • Related Concepts

    To build a more complete picture, explore these related concepts: North Star Framework, Empowered Teams, and Initiative Roadmap. Each connects to this term and together they form a toolkit that product managers draw on daily.

    Related Terms

    North Star FrameworkEmpowered TeamsInitiative Roadmap

    Frequently Asked Questions

    What is okr in product management?+
    A goal-setting framework popularized by Intel and Google. Product managers use this concept to make more informed decisions and deliver better outcomes for users and the business.
    When should a PM use okr?+
    Use okr when you need a structured approach to make decisions that would otherwise rely on opinion or gut feel. It is especially valuable during prioritization, planning, and stakeholder alignment sessions where a shared framework brings rigor and transparency.
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