Software Growth

OKR (Objectives and Key Results)

An OKR pairs a clear objective with measurable key results so a team can focus on an outcome and track progress toward it over a defined period.

Objectives and Key Results (OKRs) are a goal-setting framework for connecting a team's direction to measurable outcomes. The objective describes what the team wants to accomplish in clear, qualitative language. The key results say how it will know whether it made progress, using specific measures and a time period. Initiatives are the work the team chooses to pursue; they are not themselves proof that the outcome happened.

A SaaS example

Objective: Make first-week setup feel effortless for new customers. Key results for this quarter might be to raise the share of new accounts that complete setup from 42% to 60%, and reduce median time to first successful workflow from two days to one. An initiative could be simplifying the setup checklist. The initiative is an action; the key results measure whether the change improved the customer outcome.

Write results, not task lists

A key result should be verifiable at the end of the cycle and tied to a baseline where possible. “Ship a new onboarding flow” describes output. “Raise first-week activation from 42% to 60%” describes a measurable result. Teams should limit the number of objectives and key results enough to keep focus, and review progress regularly so they can adapt as they learn.

OKRs vs. KPIs

A KPI (key performance indicator) is usually an ongoing measure of business or process health. An OKR adds a specific change the team wants to make within a defined period. The same metric can be a KPI in one context and a key result in another, depending on whether it is simply monitored or has a target attached to a change objective.

For a small SaaS

OKRs can help when a few people need to align around a meaningful improvement, such as reducing failed payments or helping more users reach the product's North Star Metric. They do not replace a strategy, customer research, or a useful operating dashboard. Avoid cascading a large stack of goals or rewarding teams for hitting numbers at the expense of customer value. A short quarterly cycle with clear owners and honest check-ins is often enough.

Connect the objective to a direction

In Mission, Vision, poTAYto, poTAHto, Jason Cohen distinguishes a lasting purpose, a desired future state over a chosen number of years, and the next observable milestone. An OKR can help operationalize that milestone. For example, a clinic SaaS aiming to serve larger practices might first demonstrate that three multi-location customers can complete setup and renew. The quarterly goal should support that direction rather than simply reward more shipped features.

Sources

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