OKR (Objectives and Key Results)
OKRs (Objectives and Key Results) is a goal-setting framework where an Objective defines what you want to achieve (qualitative) and Key Results define how you'll measure success (quantitative).
In depth
OKR structure: - Objective: ambitious, qualitative goal ('Become the #1 fitness app for busy professionals') - Key Results: 3–5 measurable outcomes ('Reach 10K DAU', 'Achieve 40% Week-4 retention', 'Hit $50K MRR')
Rules: - Set quarterly OKRs, review weekly - Aim for 70% completion — 100% means goals weren't ambitious enough - Company OKRs cascade to team OKRs - OKRs are public within the company
OKRs vs KPIs: KPIs are ongoing health metrics (MRR, churn). OKRs are time-bound goals that change each quarter.
Startup OKR example: O: Validate product-market fit for our B2B SaaS KR1: Reach 40% 'very disappointed' score in PMF survey KR2: Achieve 15% Week-8 retention KR3: Close 3 paying customers at $500+/month
Real example
Q3 Objective: Launch paid tier. KR1: 500 paying users. KR2: $10K MRR. KR3: NPS above 40.
Related terms
Product-Market Fit (PMF)
Product-market fit (PMF) is the degree to which a product satisfies a strong market demand — the state where your product is so valuable that users naturally recommend it and return to it.
North Star Metric
A North Star Metric (NSM) is the single, primary metric a company uses to measure the core value it delivers to customers — and by extension, predict long-term business health and growth.
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