5 OKR Best Practices That Actually Work

The difference between teams that succeed with OKRs and teams that abandon them after two quarters comes down to five practices. I've seen both outcomes many times. Companies that nail these practices create focused, aligned organizations. Those that skip them end up with fancy goal-setting theater that changes nothing.

"OKRs are definitely about communication. If the frame is not clearly set, it can lead to frustration within teams."

This insight from my OKR podcast episode captures the core challenge. OKRs aren't complicated in theory, but they require discipline in practice. In this article, I'll share the five best practices that have made the biggest difference in my experience helping Product Managers and Leadership teams establish effective OKR processes.

A Quick OKR Refresher

Before diving into best practices, let's align on the basics. OKR stands for Objectives and Key Results. It's a goal management framework invented by Andy Grove in the 1970s. Google later adopted and popularized it, growing 10x and more while using this framework.

An Objective is the "what." It's a qualitative goal that expresses what you want to achieve. It should be ambitious, tangible, and clear enough that anyone can tell whether you've achieved it.

A Key Result is the "how." It's a quantitative measure that tells you whether you're making progress toward the objective. Each objective typically has 3-5 key results.

Here's a personal example from when I was getting started with video content:

Objective: Get Started on YouTube With the "Coaching Program"

• KR1: Complete two online training courses on YouTube optimization
• KR2: YouTube channel fully set up
• KR3: Camera equipment bought and configured by [date]
• KR4: Three videos published by [date]

For a complete deep-dive into the OKR framework, including templates and planning guides, check out my Practical Guide to OKR Planning.

The 5 OKR Best Practices

#1 Align OKRs Across the Organization

Since OKRs are defined on a quarterly basis, alignment is critical. Three months is a long time to work in the wrong direction.

"If every quarter it takes you the first six weeks to have them ready, you're losing six weeks of actual execution."

I've seen individuals and teams define OKRs and then spend weeks in endless discussions and post-adjustments. That's the opposite of what the process should deliver. When your company's strategic direction is clear, team-level OKRs should cascade naturally from it.

Before I write down "urgent" goals, I always pause to consider:

• What is the company or product vision?
• Where do we want to be in 1-2 years?
• How can my team contribute to getting there?
• What are other teams currently focusing on?

Depending on your company size, some objectives may require collaboration across teams. You can save tremendous time by aligning OKRs upfront rather than discovering dependencies later.

Alignment Workshop Template:

When I facilitate OKR alignment, I use a simple three-step process: First, each team drafts their objectives independently based on company strategy. Second, teams present their drafts and identify overlaps or dependencies. Third, we adjust to ensure no conflicts and clear ownership. This typically takes 2-3 hours but saves weeks of confusion.

This connects directly to your product strategy. If your strategy is clear, your OKRs should flow naturally from it.

#2 Balance Committed vs. Aspirational OKRs

Every OKR should push beyond business-as-usual. But not all OKRs are created equal. Understanding the difference between committed and aspirational OKRs is essential for setting the right expectations.

"Setting bold goals also empowers and enables people to think broader and think outside the box to be more creative to achieve those big goals."

A Committed OKR is something you absolutely must achieve. You're committed to hitting 100% and willing to adjust schedules and resources to make it happen. Think GDPR compliance with a hard deadline. That's a committed OKR.

An Aspirational OKR is something you want to achieve, even if you don't know exactly how yet. These reflect the bigger goals your company believes in. They're typically achieved at around 70%, with high variance.

Committed vs. Aspirational: A Comparison

Is it bad to not achieve 100% of an aspirational goal? Absolutely not. I've seen Product Managers and Leadership teams set goals artificially low just to ensure they'd hit them. The reasons were keeping teams motivated or "under-promise, over-deliver." But that defeats the purpose of OKRs entirely.

Consider this: If your boss tells you to produce 10% more output, you'll likely produce 10% more. Maybe 8-9%. But if they ask for 100% more? Even hitting 70% would be a massive achievement. The ambitious target changes how people think about the problem.

"We don't fail because we aim too high and miss. We fail because we aim too low and hit." — Les Brown

#3 Involve Teams in Goal-Setting

Thinking of great goals and ways to achieve them isn't easy. I've learned that doing it as a team always beats doing it as an individual. How would you feel if your Product Manager came out of their office and told you what to focus on for the next three months without ever involving you?

"You need to write them in a way so that they are not a to-do list."

If you define OKRs four times a year, start thinking about the next set during the third month of the current quarter. Yes, you won't know 100% if you'll achieve the current OKRs. Some might slip to the next quarter. But the routine of defining new OKRs must continue.

My Team Workflow:

As a Product Manager, I create a shared document inviting my team to brainstorm objectives and key results. If we know of committed topics already, I add them as a starting point. I've learned that setting a deadline for initial brainstorming keeps us on track. After the deadline, I schedule a meeting to discuss priorities and align as a team. Remember: the whole team commits to OKRs, not just the PM.

Note: Defining OKRs during Christmas time is the hardest. Most people are off the second half of December. Plan accordingly.

Does managing larger teams take more time?

If the company strategy and quarterly objectives are clear, it shouldn't. The OKR framework is designed to empower teams to autonomously find solutions that contribute to the vision. Yes, more team members means more collective time spent. But the time and money saved through clear focus and alignment far outweighs this investment.

#4 Measure and Learn Continuously

Like the Lean Startup's "build, measure, learn" approach, OKRs require a continuous learning cycle. I've seen companies start with OKRs and stop after one or two quarters. Great OKRs aren't just about writing skills. They require regular status checks and detailed reviews.

"The key results should really have like a measurable aspect to it. Is it like growth? Is it retention? How do you measure it?"

My teams and I always held 1.5-2 hour retrospective sessions at the end of each quarter with a facilitator from outside the team. We asked whether targets were realistic, phrasing was clear, and how things worked throughout the quarter.

The Outcomes vs. Activities Trap:

We often fell into mixing up outcomes and activities at the key result level. A key result should always define a clear outcome. If it starts with words like "empower," "consult," "support," or "enable," you're describing activities. Words like "release," "achieve," "increase," or "finalize" describe outcomes.

This is where your product KPIs connect to OKRs. KPIs tell you where you are. OKRs tell you where you want to be. Your Key Results should be measurable metrics that can become KPIs you track continuously.

OKRs aren't just a framework. They're a mindset. It takes time until an organization truly applies and lives it. Keep working and reflecting hard. The reward is worth it.

What to Ask in Your Retrospective:

After each quarter, consider these questions with your team:

• Were our targets realistic given our capacity?
• Did we phrase key results clearly enough to measure?
• Where did we confuse activities with outcomes?
• What external factors impacted our progress?
• What should we do differently next quarter?

If you're interested in a deeper dive into OKR planning, check out this podcast episode where I discuss the full framework.

#5 Communicate OKRs Transparently

"The art of communication is the language of leadership." — James Humes

Communication starts with you, extends to your team, spreads across the company, and flows back. When I first started working with OKRs, I made the mistake of only communicating them to Product and Engineering. I completely forgot about Customer Success, Marketing, and Sales. All stakeholders want to know what you're doing, regardless of which framework you use.

Regular Status Updates:

Within my team, I take 5 minutes at the beginning of backlog grooming to do a quick health check on OKRs. Simple thumbs up/down voting on whether we're on track helps tremendously. It keeps everyone aware without lengthy status meetings.

When Things Go Wrong:

Communication becomes even more critical when things don't work as expected. If your team realizes a goal isn't achievable, escalate immediately. This is especially important for committed OKRs. Delays are never great, but transparency and honesty differentiate successful teams from struggling ones.

What Success Looks Like

How do you know if your OKRs are working? It depends on whether they're committed or aspirational.

"Usually it's good to reach 70%, 80%. I think Google is more around the 70. Other companies do 80. I think it's up to the company to decide."

For committed OKRs, success means 100% achievement. Anything less requires investigation and escalation.

For aspirational OKRs, achieving 70-80% is considered success. If you're consistently hitting 100% on aspirational goals, they probably weren't ambitious enough.

Color-Coded Tracking:

Many teams use a simple color system for weekly check-ins:

• Green: On track (70%+ for aspirational, 90%+ for committed)
• Yellow: At risk, needs attention
• Orange: Behind schedule, action required
• Red: Significantly off track, escalation needed

For more details on tracking and measurement frameworks, see the Practical OKR Planning Guide.

Common Mistakes to Avoid

Even with best practices in mind, teams make predictable mistakes. Here are the four I see most often:

Mistake #1: Too Many OKRs

When everything is a priority, nothing is. Limit yourself to 2-4 objectives per team, with 3-5 key results each. More than that dilutes focus and makes tracking impossible. I've seen teams with 8+ objectives wonder why nothing gets done. The answer is simple: spread too thin, accomplish too little.

Mistake #2: Key Results as Tasks

"Launch new landing page" is a task. "Increase landing page conversion from 2% to 4%" is a key result. Tasks describe what you'll do. Key results describe what will be different because of what you did. The fix is simple: always ask "so what?" after writing a key result. If the answer describes a business outcome, you're on the right track.

Mistake #3: Set and Forget

OKRs without weekly check-ins become wish lists. Schedule recurring time to review progress. The simple health check I mentioned, 5 minutes of thumbs up/down voting, is enough to keep OKRs alive. Without regular review, you'll reach the end of the quarter surprised by results you could have predicted weeks earlier.

Mistake #4: Copying Another Company's OKRs

What works for Google won't necessarily work for your 20-person startup. OKRs need to fit your company's stage, culture, and strategy. Start simple, learn from each cycle, and evolve your approach based on what actually works for your team.

Start Implementing Today

No matter how much you read about OKRs, the best way to learn is by doing. If your company doesn't use this framework yet, try it personally. I did with my YouTube goals, and it helped me get started on something I'd been putting off for months.

Here's a simple way to start:

1. Pick one personal or professional goal you've been avoiding
2. Write a clear objective that describes what success looks like
3. Define 3-4 key results that would prove you've achieved it
4. Review your progress weekly for one quarter

That's it. You'll learn more from one real OKR cycle than from reading dozens of articles. Once you experience the clarity that comes from well-defined goals, you'll understand why companies like Google have built their culture around this framework.

Remember: your first OKR cycle will never be perfect. That's expected. What matters is that you retrospect, learn, and improve each quarter. The companies I've seen succeed with OKRs aren't the ones who got it perfect on day one. They're the ones who kept iterating.

What are your experiences with OKRs? Tell me what you think on LinkedIn.