The OKR Hub
Writing OKRs13 min read

Strategic Setting OKRs: Drive Real Business Results

Learn to stop setting OKRs as mere progress reports. Our consultant-led approach drives strategic choices and real business results.

Mike Horwath

Mike Horwath

6 May 2026

Setting OKRs sounds easy. That’s why so many leadership teams get it wrong.

They sit in a room, pull up the project list, rename a few workstreams as “objectives”, attach some delivery milestones, and call it strategic planning. It isn’t. It’s reporting in advance.

I’ve seen this pattern too many times. The quarter starts with confidence, dashboards look tidy, teams stay busy, and nothing important changes. Customers don’t feel a difference. Execution doesn’t get faster. Priorities don’t get clearer. Leaders just get a nicer format for the same old confusion.

Proper setting okrs starts somewhere less comfortable. Not with “what are we already doing?” but with “what must change this quarter?” Many teams avoid that question because it forces trade-offs, exposes weak thinking, and creates friction between functions. Good. That’s where the important work is.

The Quality of Your Quarter Starts Here

Most advice on setting OKRs treats the process like admin. Write an objective. Add key results. Publish the sheet. Move on.

That’s lazy management.

The OKR-setting conversation is one of the most impactful leadership activities in the quarter. If you set weak OKRs, you don’t get a weak document. You get a weak quarter. People will still work hard. They’ll still attend meetings. They’ll still deliver things. But they’ll deliver against targets that never demanded real movement in the business.

Why this matters more than leaders admit

Weak OKRs usually sound respectable. “Improve customer experience.” “Deliver the platform roadmap.” “Support international growth.” None of that is precise enough to focus a business. It gives everyone room to interpret success in a way that suits their own function.

That’s how misalignment survives.

If your executive team wants a stronger quarterly rhythm, your OKRs need to connect to the wider operating cadence. A lot of teams also tighten their review process at the same time they redesign goals. If you’re revisiting how quarterly planning and review should work together, this guide on how to elevate QBRs with AI is useful context because it shows how review quality shapes decision quality.

Treat planning as execution design

Leaders often separate strategy from execution. They discuss strategy in one forum, then “set OKRs” in another as if it’s a translation exercise. It isn’t. OKR-setting is where strategy gets forced into operational reality.

Use a proper cadence. Use a defined process. If you don’t already have one, start with a clear approach to how to structure the setting process across a full quarter.

Practical rule: If your OKR-setting session feels quick and painless, you probably haven’t made any real strategic choices.

The standard for a good quarter isn’t whether every team can describe what they’re doing. It’s whether the business has named what must change, what will prove it, and what gets deprioritised to make room.

Why Most OKRs Are Glorified To-Do Lists

Most OKRs are built backwards.

The team already plans to launch a feature, hire roles, run a campaign, migrate a system, or redesign a process. Then someone wraps that work in OKR language. The objective becomes “Successfully launch the new customer portal.” The key results become “Complete development”, “Finish testing”, “Go live by end of quarter”.

That’s not an OKR. That’s a delivery plan wearing different clothes.

A hand holding a black marker writing the objective Elevate Reporting Excellence on a whiteboard.

What this looks like in practice

You see it everywhere:

  • Engineering teams track shipping milestones instead of adoption, performance, or customer behaviour.
  • Marketing teams count assets produced instead of demand created or conversion improved.
  • HR teams measure training sessions delivered instead of capability built or behaviour changed.
  • Operations teams report implementation completion instead of cycle time, quality, or service improvement.

These OKRs create the illusion of discipline. Everyone can point to progress. Everyone can say they’re “on track”. Then the quarter ends and leaders realise they measured motion, not impact.

Why businesses keep making this mistake

Many organisations rush into OKRs because they’ve heard they’re a best practice. They copy the mechanics before checking whether they are ready to use the framework properly.

That readiness gap matters. Many organisations push ahead without assessing whether they have the conditions needed for OKRs to work, including psychological safety for ambitious goals, data infrastructure to measure results, or a culture that can tolerate ambitious targets on stretch goals.

When OKRs fail to stick, the problem usually isn’t the template. It’s that the business wanted the optics of focus without the discipline of focus.

If this pattern feels familiar, read what goes wrong when OKR-setting is weak. In most cases, the issue isn’t that teams can’t write sentences. It’s that leaders haven’t forced the hard conversation about what matters more than everything else.

The Conversation That Changes Everything

The most important part of setting OKRs happens before anyone writes a draft.

It starts with one question. So what?

Before a team proposes an objective or key result, they should be able to answer two things clearly. What business problem are we solving? What evidence will tell us the problem is solved?

If they can’t answer that, they’re not ready to write an OKR. They’re ready for a strategy discussion.

A comparison chart showing the difference between typical activity-driven OKRs and strategic impact-driven OKR planning methods.

Use the so what test early

Don’t wait until the draft review to challenge weak logic. Do it at the start.

Ask questions like these:

  1. What’s the actual gap If this OKR succeeds, what gets better that isn’t good enough today?

  2. Why now Why does this deserve focus in this quarter rather than later?

  3. What evidence counts What would an informed sceptic accept as proof that this worked?

  4. Who needs to change behaviour Customers, prospects, managers, sales teams, engineers, suppliers. Someone must behave differently if the OKR matters.

Most weak OKRs collapse under those questions because they were never rooted in a business problem. They were rooted in planned activity.

Force clarity before wording

Leaders waste time polishing language when the thinking underneath is still vague. Better wording doesn’t rescue a weak priority.

A sharper discussion usually reveals one of three truths:

SituationWhat it meansWhat to do
The team can’t define the problemThe priority isn’t understoodPause and clarify the strategy
The team can’t prove the outcomeMeasurement is weakFix the measurement before locking the OKR
The team names only tasksThey’re describing initiatives, not resultsReframe around business effect

Cross-functional friction often surfaces. Good. Marketing may say the issue is pipeline quality. Product may say activation. Operations may say fulfilment. You need those disagreements in the room before the quarter starts, not buried inside weekly status calls.

If your organisation keeps saying it has alignment while teams still pull in different directions, this piece on why teams are misaligned at work is worth reading.

Writing Objectives That Force Focus

A strong objective doesn’t describe ongoing work. It names a meaningful change the business needs to make.

That means an objective should close a gap, capture an opportunity, or solve a problem that matters now. Not eventually. Now.

A close up of a businessman pointing to a document stating achieve 100 percent customer satisfaction.

The test I use with leadership teams

Ask this.

If you achieved every other company OKR this quarter but failed this one, would the quarter still feel disappointing?

If the answer is no, the objective isn’t strategic enough.

That question cuts through a lot of nonsense. It exposes the nice-to-haves. It exposes the inherited projects nobody challenged. It exposes the work that sounds useful but won’t materially change the company’s position.

What good objectives do differently

Strong objectives have a few common traits:

  • They create tension because they force decisions about time, budget, and leadership attention.
  • They are specific in intent even if they are not numeric themselves.
  • They matter across functions rather than sitting neatly inside one silo.
  • They have clear ownership so everyone knows who carries the result, not just who contributes to it.

Ownership is not optional. That’s why I reject committee-owned objectives. Shared interest is fine. Shared accountability usually means no accountability.

A quick filter for better objectives

Use this before you approve any draft objective:

  • Does it solve a real problem rather than describe a department’s planned work?
  • Does it require change in behaviour, performance, or capability?
  • Does it deserve executive airtime because failure would matter?
  • Does one person own it even if several teams contribute?

If you want a stronger standard for wording and structure, use this practical guide to writing OKRs.

A good objective should make people uncomfortable in a productive way. It should demand focus, not applause.

Crafting Key Results That Create Accountability

This particular stage often reveals teams' true understanding of OKRs.

If the objective sets direction, the key results provide proof. Not proof that work happened. Proof that something changed.

A key result should measure an outcome. Customer behaviour changed. Conversion improved. Cycle time dropped. Retention strengthened. Quality increased. Something observable moved.

Stop writing delivery milestones as results

These are not key results:

  • Launch the new website
  • Complete CRM migration
  • Run five customer webinars
  • Publish the sales playbook

Those are initiatives, outputs, or tasks. Useful perhaps. But not results.

A much better discipline is to ask, after every draft KR, so what changes? If the answer is vague, the KR is weak. If the answer is “that enables us to…” then you’re still describing an output, not the result itself.

Use a simple comparison

Weak KRWhy it failsBetter direction
Launch onboarding flowMeasures delivery onlyMeasure activation, completion, or time to value
Publish pricing pageTracks content productionMeasure conversion, sales cycle quality, or qualification
Train managersCounts attendanceMeasure manager behaviour or team performance change

This is harder work because outcome measurement often exposes messy data, missing baselines, and poor instrumentation. Good. That’s not a reason to lower the bar. It’s a reason to improve your management system.

Review cadence makes weak KRs obvious

A bad KR often survives on paper and dies in the check-in. That’s why cadence matters.

Weekly review forces teams to confront whether a KR helps them make decisions. If the conversation keeps drifting back to project updates, your KR is probably measuring the wrong thing.

Use this distinction rigorously. If your teams still blur activity and impact, this explainer on the difference between outcome vs output will help tighten the standard.

Reality check: If a KR can turn green while the business stays the same, it’s the wrong KR.

The Trade-Off Conversation You Must Not Skip

Real OKRs require subtraction.

That’s the part most leadership teams avoid.

They want focus without saying no. They want ambition without conflict. They want every department to feel equally important, every project to stay alive, and every stakeholder to leave the room happy. That isn’t leadership. It’s avoidance.

A diverse business team sitting at a conference table looking at whiteboards displaying strategic objectives.

Friction is a sign you’re doing it properly

When teams set proper OKRs, conflicts show up fast.

Product wants to accelerate feature delivery. Customer success wants engineering capacity for service issues. Sales wants custom deals supported. Operations wants standardisation. Finance wants tighter cost control.

That tension isn’t a problem to smooth over. It’s the point of the exercise. If your OKR-setting workshop doesn’t surface competing priorities, you probably aren’t discussing priorities at all.

The hidden failure in most OKR systems

A lot of OKR advice focuses on top-down and bottom-up alignment. That’s useful, but incomplete. The harder problem is horizontal alignment across teams.

Organisations often struggle with side-to-side alignment, where teams work in parallel rather than together. Without explicit operating rhythms and dependency mapping that surface conflicts between team OKRs, misalignment persists despite well-written goals, as highlighted in Planview’s guide to writing OKRs.

That’s why I push leaders to make dependencies visible during setting, not after launch.

What to force in the room

Make leadership teams answer these questions before finalising OKRs:

  • What work loses priority If everything remains important, nothing has been prioritised.

  • Where do objectives collide Name the resource, sequencing, or capacity conflicts explicitly.

  • Which teams depend on each other Don’t assume alignment because both teams can trace their OKRs to the company plan.

  • Who resolves trade-offs Cross-functional tension needs a decision owner, not endless negotiation.

This is one place where a structured method helps. Some organisations use internal PMO governance, some use a dedicated strategy lead, and some use a specialist model such as The OKR Hub’s Focus Flow to diagnose dependencies, shape governance rhythm, and support cross-functional alignment during rollout.

The quarter gets easier after leadership has the hard conversation. It gets chaotic when leadership avoids it.

Stop Reporting and Start Executing

Execution gets weak when OKRs become a status ritual. Teams start reading updates, defending activity, and congratulating themselves for staying busy. Nothing meaningful changes.

Strong OKRs create pressure after the planning session, not just during it. They give leaders a small set of outcomes to chase, expose where progress is stalled, and force intervention early. If your weekly check-in sounds like a project meeting, your OKRs are failing at the one job that matters.

What better looks like

A company using OKRs well treats them as a management system for change. Leaders review the few metrics that show whether the business is moving. Teams explain what they learned, what is off track, and what decision is needed. The conversation stays on outcomes, blocked dependencies, and resource shifts. It does not drift into a recital of completed tasks.

That distinction matters. Aakash Gupta's OKR vs KPI analysis is useful here because it shows the difference between measuring ongoing performance and driving strategic change. Confusing those two is one of the fastest ways to turn OKRs into another reporting layer.

Execution discipline is plain to see:

  • Review OKRs frequently enough to change decisions, not just document progress.
  • Escalate blocked key results fast, with a named owner for the decision.
  • Cut work that no longer supports the objective, even if it was approved last month.
  • Rewrite weak key results once reality exposes the flaw. Do not protect bad drafting for the sake of consistency.
  • Judge leaders by whether priorities changed behavior, not whether slides looked tidy.

If your current OKRs mostly describe work already in motion, stop polishing the dashboard. Fix the operating cadence. The point of the quarter is not to produce cleaner updates. The point is to force a few important changes through the organisation and prove they happened.

Some leadership teams use internal strategy or PMO support to run that cadence well. Others bring in a specialist model such as The OKR Hub to tighten review rhythm, decision ownership, and accountability during execution.

Most businesses do not need more enthusiasm for OKRs. They need higher standards and more honesty.

Ask the only question that matters. What will be different in 90 days because these OKRs existed? If the answer is unclear, you are still reporting.

If you want help turning OKRs into a working management system rather than another reporting layer, talk to The OKR Hub. We work with leadership teams that have clear ambition but inconsistent delivery, and help them build the structure, cadence, and accountability needed to make OKRs work in practice.

Mike Horwath

Written by

Mike Horwath

Share this post