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Goals and measures

How to set OKRs: a cheat sheet

Everything you need on one page: the shape of a good OKR, the rules that keep it honest, and three worked examples you can copy. New to OKRs? Read OKR vs KPI first. About 8 minutes to read.

🎯ObjectiveWhere you want to be. Short, plain words, no numbers. Something people would want to work on.
📏Key ResultA number that proves you got there. Always "from X to Y" by a date.
🛠️InitiativeThe work you will do to move the numbers. Useful to list, but not part of the score.
📅CycleUsually one quarter. Check in every week or two. Score and reflect at the end.
Part 1

Anatomy of an OKR

We will [Objective]
as measured by [Key Result 1, 2, 3].
One objective, three key results, and the initiatives beneath them OBJECTIVE · the "what" and "why" Qualitative · inspiring · 1 sentence KEY RESULT 1from X to Y KEY RESULT 2from X to Y KEY RESULT 3from X to Y initiatives (the work) initiatives (the work) initiatives (the work) Score the blue boxes. Do the grey boxes. Aim for the purple one.
Key Results describe outcomes. Initiatives describe effort. Mixing them up is the most common OKR mistake.

Outcome or output?

❌ Output (a task, goes under initiatives)✅ Outcome (a Key Result)
Launch a new onboarding email seriesRaise users active in week 1 from 30% to 45%
Run 4 security training sessionsCut phishing-test click rate from 18% to 5%
Hire 2 support agentsCut first reply time from 9 hours to 2 hours
Part 2

The rules, on one card

Few. 1 to 3 Objectives, 2 to 4 Key Results each.Why: if everything is a priority, nothing is.
Every Key Result says "from X to Y".Why: without a baseline you cannot tell progress from noise.
Measure results, not effort.Why: you can finish every task and still change nothing for the customer.
Stretch, but believe it.Aim for targets you would be proud to hit about 70%. Why: safe targets teach nothing, impossible ones get ignored.
Write them with the team, not for the team.Why: people commit to goals they helped shape.
Add guardrails.Name 1 or 2 KPIs that must not get worse. Why: pushing one number hard can quietly damage another.

Scoring at the end of the cycle

Score each Key Result from 0.0 to 1.0 by how far you moved from X towards Y. Average them for the Objective.

0.0 – 0.3Little progress. What got in the way? Was it the right goal?
0.4 – 0.6Real progress. Learn from it, and decide whether to carry it on.
0.7 – 1.0The sweet spot. A steady 1.0 means your targets are too safe.

Committed vs stretch: some goals must hit 1.0, such as a legal deadline. Label those "committed" so nobody reads 0.7 as fine. The compliance example below is one.

A
Example A

Compliance can be an OKR on its own

Staying compliant day to day is a KPI: "zero overdue access reviews". But when you need to reach a new state, such as passing an audit, gaining a certification, or closing a backlog of findings, that is a change with a deadline. That makes it a good OKR.

Objective · committedBe audit-ready all year round, not just in audit week.
KR1Close open findings from last year's audit6 → 18 of 18
KR2Staff who completed data protection (PDPA) training62% → 100%
KR3Time to pull together evidence for an auditor's request10 days → 2 days
KR4Major non-conformities in the external ISO 27001 audit3 → 0
Initiatives: one shared evidence folder with an owner per control · automated quarterly access reviews · 15-minute training modules in the onboarding checklist.
Guardrail KPI: releases are not delayed by more than 1 day because of compliance checks.

Why this works: KR1 and KR4 prove the destination. KR2 and KR3 prove the change will last after the auditors leave, which is the real point of the Objective.

B
Example B

Getting new customers (acquisition)

Acquisition means winning new customers. It is easiest to think about as a funnel: many people hear of you, fewer try you, fewer still pay. Good acquisition OKRs pick the stage of the funnel where people drop out the most.

An acquisition funnel from visitors to paying customers Visitors · 20,000 Free trial sign-ups · 1,000 Still active after 7 days · 300 Paying · 40 5% sign up 30% keep using it 70% drop out here ⚠ 13% of active users pay
A monthly funnel for a booking app for small clinics. The biggest leak is between sign-up and real use, so that is where the OKR aims.
ObjectiveBecome the obvious choice for small clinics in Singapore.
KR1New paying customers per month40 → 70
KR2Trial users still active after 7 days30% → 50%
KR3Cost to win one customer (CAC)$220 → $160
Initiatives: guided setup that books a first real appointment in 10 minutes · referral offer for existing clinics · two case studies from happy customers.
Guardrail KPI: new customers who cancel within 30 days stay under 5%. Buying customers who leave straight away is not growth.
TermWhat it means
Conversion rateThe share of people who move from one stage of the funnel to the next.
CAC (customer acquisition cost)Total sales and marketing spend ÷ new customers won. $8,800 ÷ 40 = $220.
ActivationThe moment a new user gets real value for the first time, such as a clinic's first booked appointment.
ChurnCustomers who stop paying in a period, as a share of all customers.
C
Example C

Customer happiness: CSAT and NPS

These are the two most common ways to put a number on how customers feel. They sound alike but measure different things: CSAT measures one moment, NPS measures the whole relationship.

CSAT: Customer Satisfaction Score

The question: "How satisfied were you with [this support chat / your delivery / this visit]?" Customers answer from 1 (very unsatisfied) to 5 (very satisfied), usually right after the moment happens.

The score: the percentage of people who answered 4 or 5.

CSAT counts the 4s and 5s on a 1 to 5 scale 1 😠20 people 2 🙁10 people 3 😐20 people 4 🙂70 people 5 😄80 people satisfied = 150 CSAT = 150 satisfied ÷ 200 answers = 75%
Ask it straight after the moment, while it is fresh. Good for spotting a bad experience quickly.

NPS: Net Promoter Score

The question: "How likely are you to recommend us to a friend or colleague?" Customers answer from 0 to 10. It is usually asked every few months, not after every interaction.

The score: answers fall into three groups. NPS = % Promoters − % Detractors. Passives count towards the total but are not added or taken away. The result ranges from −100 to +100. It is a plain number, not a percentage.

NPS groups a 0 to 10 scale into detractors, passives and promoters 012345678910 Detractors: unhappy, may warn others Passives Promoters 20 of 100 people = 20% 30 people 50 people = 50% NPS = 50% − 20% = +30
Notice how harsh the scale is: a 7 or 8 does not count in your favour. That is deliberate. Only real fans spread the word.
CSATNPS
MeasuresOne moment or interactionThe overall relationship and loyalty
Question"How satisfied were you with …?""How likely are you to recommend us?"
Scale1 to 50 to 10
Score% of 4s and 5s (0% to 100%)% promoters − % detractors (−100 to +100)
When to askRight after the interactionEvery few months
MovesFast, within weeksSlowly, over months
Best forFixing a specific experienceTracking whether customers would back you

The OKR

ObjectiveCustomers feel so well looked after that they tell their friends.
KR1CSAT after support conversations75% → 88%
KR2Net Promoter Score+12 → +30
KR3Customers contacting us twice about the same issue within 7 days22% → 10%
Initiatives: call back every detractor within 48 hours · fix the top 3 reasons for repeat contacts · let agents give a refund up to $50 without approval.
Guardrail KPI: survey response rate stays above 15%, so the scores are based on enough answers to trust.

Be careful with small numbers. With 40 survey answers, a few people can swing NPS by 10 points. Always show how many people answered next to the score. And compare NPS with your own past results or your industry, not with companies in very different markets.

Why use both? CSAT moves quickly, so it tells you within weeks if your changes are working. NPS moves slowly but tells you whether those changes add up to loyalty. A rising CSAT with a flat NPS often means you fixed the small things but not the big one.

Before you publish

The 60-second checklist

Copy this template

OBJECTIVE: ______________________________ (committed / stretch) KR1: ____________________ from ____ to ____ by ________ KR2: ____________________ from ____ to ____ by ________ KR3: ____________________ from ____ to ____ by ________ Initiatives: ______________________________ Guardrail KPI: must stay ___________________ Owner: ________ Check-in: every ________

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