Key points in 30 seconds
- An OKR pairs a qualitative objective with three measurable key results.
- Limit the company to three objectives per quarter.
- Hold a short weekly check-in and a review at quarter end.
- Don't link OKRs directly to pay.
The principle
The objective says where you want to go, in one motivating sentence. The key results say how you'll know you're there, with figures. Each key result must be measurable at quarter end, beyond debate.
Examples for an SME
| Objective | Key results |
|---|---|
| Become the reference for industrial SMEs in the region | 20 qualified meetings; 3 new industrial customers; 2 case studies published |
| Make our customer service faultless | First response under 2 hours; satisfaction above 4.5/5; zero complaints unanswered after 48h |
| Make our sales forecasts reliable | 100% of opportunities in the CRM; forecast/actual gap under 15% |
The quarterly cycle
- Week 0: management proposes three objectives; each team proposes its key results.
- Every week: 15 minutes to update progress and remove blockers.
- Quarter end: review, a 0 to 1 score for each key result, lessons and next OKRs.
Reaching around 70% of an ambitious key result is often considered a good score.
Common mistakes
- Writing tasks ("launch the website") instead of results ("30 enquiries a month").
- Setting ten objectives: nothing is a priority any more.
- Linking OKRs to bonuses: teams then aim too low.
- Skipping the weekly check-in: the method becomes one more document.
Writing a good key result
A key result meets four criteria: it is quantified, time-bound, within the team's influence and verifiable without debate. Compare:
| Avoid | Prefer |
|---|---|
| Improve client satisfaction | Average satisfaction above 4.5/5 across 100 responses |
| Do more prospecting | 40 qualified meetings this quarter |
| Launch the newsletter | 500 subscribers with a 35% open rate |
| Work on hiring | 2 key roles filled before the 30th of the last month |
Cascading OKRs to teams
Company OKRs set the direction; each team then proposes its own, contributing to at least one company objective. Cascading should not be imposed from the top: teams know their levers better. A good balance is to let teams propose about half of their own OKRs. Individual OKRs are not needed in an SME; they make the method heavier.
Tracking tools
A shared spreadsheet is enough to start: one row per key result, with the baseline, target, current value and a comment. As the number of teams grows, a dedicated tool or the CRM dashboard can track sales indicators automatically. What matters is that the update takes less than five minutes a week.
OKRs, KPIs and budget: how they fit together
KPIs track the company's health continuously: revenue, margin, cash, satisfaction. OKRs set what you want to improve this quarter. The budget allocates resources. An OKR can target a KPI you want to improve, for example raising the conversion rate from 15% to 20%. See our guide on managing by KPIs.
Example of a first quarter
A 25-person services SME launches its first OKRs. Management keeps just two objectives: "Structure our business development" and "Deliver our projects on time". For the first, three key results: 100% of opportunities tracked in the CRM, 30 qualified meetings, a 25% quote conversion rate. For the second: 90% of deliverables handed over on the planned date, an average client response time under 24 hours.
At the end of the quarter, the average score is 0.7. The team finds that CRM tracking was the most effective lever and decides to continue it next quarter.
Should you get support?
OKRs are simple in principle, but the first iterations are often clumsy: too many objectives, tasks instead of results, tracking abandoned after a few weeks. Support over one or two quarters helps establish the routine. It is often a natural extension of a business consulting engagement, once the strategic roadmap is ready.
Communicating OKRs across the company
OKRs work better when everyone knows them. Present the company objectives at the start of the quarter in a short meeting, explaining why they were chosen. Display them in a shared space, physical or digital. During the quarter, share progress once a month, including when a key result falls behind: transparency builds commitment. At the end of the quarter, celebrate what was achieved and explain the lessons from what was not. This regular communication turns a management method into a tool shared by the whole team.
Frequently asked questions
What does OKR mean?
OKR stands for Objectives and Key Results. It is a goal-setting method pairing a qualitative objective with a few measurable results.
How many OKRs for an SME?
Usually three company-level objectives per quarter, each with three key results. Teams then set their own.
What is the difference between OKRs and KPIs?
A KPI measures ongoing performance continuously. An OKR sets an improvement goal for a given period, often a quarter.
How long does it take to set up OKRs?
The first cycle takes two to three weeks to prepare. It usually takes two or three quarters for the method to become second nature.
Are OKRs suitable for every SME?
They suit companies with a clear strategy that want to execute it. Without a defined direction, build the strategic plan first.