The Evolution of How Many OKRs Teams Should a Team Set
Back in the 1980s, most teams set five to seven objectives, each with three to five key results. Now, in the 2020s, we find it unusual for a team to set more than three objectives. The fact that teams are defining a smaller set of OKRs is probably a good thing. After all, OKRs are intended to increase focus. As OKRs coaches, we live by the mantra less is more as setting too many OKRs is one of the most common OKR mistakes. The question is still: how many okrs should a team set?
Start Narrow: Focus on What Matters Most
We advise limiting OKRs to a narrow area of focus rather than attempting to map all work to OKRs. In general, we advise teams to define at most three objectives and four key results per objective. The optimal number of OKRs varies from team to team, so don’t be too rigid about the number of OKRs.[i]
Given that OKRs should not attempt to capture all work, most of our clients require any teams that are setting OKRs to focus on at most three objectives that capture 40 to 80 percent of their total work effort.[ii] Although we advise adhering to the less is more mantra, certain teams may benefit from another approach.
When Capturing Most of the Work in OKRs Makes Sense
Some teams capture more than 90 percent of their work effort in their OKRs. This can work well for resource-constrained teams that serve multiple stakeholders and are constantly inundated with requests to take on new projects.
These teams use OKRs as a shield to protect their team members from getting pulled into new directions in the middle of the OKRs cycle. They use OKRs to send the message:
“If you don’t see it in our OKRs, we’re not working on it right now.”
These teams tend to define as many as five objectives, each with as many as five key results. While we do not advise teams attempt to capture 90 percent of their work in their OKRs, we recognize this approach may work for teams looking to communicate what they are not prioritizing. In our experience, engineering, platform, and infrastructure teams may benefit from this approach.
The Case for Starting with a Single OKR
On the other extreme, some OKRs experts recommend teams align on a single objective.[iii]
As of 2020, we find that most teams we coach prefer to focus on a single OKR during their learning cycle. Then, after succeeding with one OKR, they explore multiple OKRs in their next cycle.
In general, we advise that teams just starting out with OKRs aim for one or two objectives, at most three. While we would never recommend every team begin by defining exactly two objectives, we do advise challenging your client to draft two objectives to balance internal and external goals.
Balancing Internal vs External Objectives
Some of our clients define two OKRs — one internal and one external. They find it critical to focus on making a positive impact on both external customers and their internal team.
External objectives are aimed at making an impact outside the team. Nearly all our clients are focused on external objectives. Examples include:
External Objective 1: Win Belgium market
External Objective 2: Successfully launch add-on product ABC
External Objective 3: Win more big accounts to accelerate growth
While customer-facing teams often focus on external objectives, support teams such as HR and finance often have internal objectives. Internal objectives focus on improving processes that impact employees and how teams work together. Examples include:
Internal Objective 1: Improve onboarding process for new engineers
Internal Objective 2: Create a culture of cybersecurity readiness
Internal Objective 3: Figure out where the money we make comes from
Key Questions to Ask When Defining Objectives
As you determine how many and what types of objectives to define, consider:
If you could only set one objective, would it be internal or external?
Would it be useful to draft both an internal and an external objective?
Is it acceptable for a team to have only an internal objective even if top-level OKRs are all external?
Coaching Takeaways
Less is more
Limit the number of OKRs when getting started to at most three objectives with four key results per objective
Consider starting with a single OKR per team
While unusual, certain teams may benefit by defining up to five objectives with up to five key results to manage expectations about what they will — and will not — deliver
Distinguish between external and internal OKRs
[i] One client initially required exactly three objectives and three key results per objective. They later adopted more flexible guidance: at most three objectives with a total of at most nine key results per team.
[ii] Some clients ask teams to estimate the percentage of effort allocated to OKRs versus other work.
[iii] Christina Wodtke is the most prominent OKRs expert recommending a single OKR.
Final Thoughts
Whether you’re just starting with OKRs or refining your approach, this guidance can help you create sharper focus, clearer priorities, and stronger execution.
Post a comment and let’s get a discussion going.
Request a free 1:1 OKR consultation: Ben@OKRs.com
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