OKR stands for Objectives and Key Results. An Objective is a qualitative, directional goal, like "become the go-to tool for product teams." Key Results are 3-5 specific metrics with targets that tell you whether you got there.
The framework came out of Intel, was popularized by Google, and is now standard at most growth-stage tech companies. The core idea: if everyone's working hard in different directions, nothing compounds.
Why it works
OKRs create alignment without micromanagement. Instead of telling people what to do, you define what success looks like. A team with clear OKRs can make daily decisions autonomously because they know what they're optimizing for.
The best OKRs are uncomfortable. If you hit 100% of your key results every quarter, your targets are too easy. Aim for 70-80% achievement.
Why it fails
OKRs fail when they become a reporting exercise. Teams write them because they have to, not because they're driving decisions. You end up with 20 key results per team that nobody reads after Q1 kickoff.
The other failure mode is vanity metrics. Key results need to measure outcomes, not output. "Ship five features" is output. "Increase weekly active users by 20%" is an outcome.
If you're connecting OKRs to your roadmap, every roadmap item should trace back to a key result. If it doesn't, it's worth asking why it's there.