Objectives and Key ResultsOKRs
Also known as: KRA, KPI
Objectives and Key Results (OKRs) is a method for setting and tracking goals, popularised at Intel and Google. The objective is a qualitative, aspirational statement of what you are trying to achieve in a period; the key results are two to five specific, measurable outcomes that show whether you reached it. OKRs are usually set quarterly, made visible across the organisation, and deliberately stretched, so scoring around seventy per cent of an OKR is often treated as success rather than failure.
It helps to distinguish OKRs from two neighbouring terms. Key Performance Indicators (KPIs) are ongoing metrics that monitor the health of a business or process — they run continuously and do not, on their own, describe a goal or a change. A Key Result Area (KRA), common in Indian appraisal systems, defines the core areas an individual is accountable for. In practice many Indian organisations run KRAs for role accountability and appraisal while layering OKRs on top for quarterly focus and alignment; a KPI can then become the measure inside a key result. The distinction people remember is that a KPI tells you how something is going, whereas a key result tells you whether a specific objective was met.
For Global Capability Centres, OKRs are a useful way to connect local teams to a global charter. When a centre in Bengaluru or Hyderabad can trace its quarterly key results back to the parent company’s objectives, it demonstrates strategic contribution rather than pure cost delivery — which matters as centres move from executing work to owning outcomes. The framework also aids talent decisions, because clear, measurable results make it easier to see who is delivering and to have honest development conversations.
Frequently asked questions
What is the difference between OKRs and KPIs?
OKRs are a goal-setting framework combining an ambitious objective with a few measurable key results for a period, usually a quarter. KPIs are ongoing metrics that monitor the health of a business or process continuously. In short, a KPI tells you how something is performing, while a key result tells you whether a specific objective was achieved.
What is a KRA, and how does it relate to OKRs?
A Key Result Area (KRA) defines the core areas of responsibility an individual is accountable for, and is widely used in Indian performance appraisals. It differs from OKRs, which set time-bound objectives and measurable results; many Indian organisations use KRAs for role accountability and OKRs for quarterly focus, with KPIs as the measures inside them.
How many OKRs should a team have?
A team typically has three to five objectives per cycle, with two to five measurable key results under each. Keeping the number small is deliberate: OKRs are meant to force prioritisation, so a long list defeats the purpose.
Are OKRs used for performance appraisal?
OKRs are primarily an alignment and focus tool, and are often set to be ambitious, so scoring a full one hundred per cent is not always expected. Because of this, many organisations keep OKRs partly separate from formal appraisal and rating, to avoid people setting easy goals to protect their scores.