Glossary

Our OKR glossary

Definitions, examples, and execution concepts for OKRs, KPIs, and strategy operations.

Key Performance Indicator

What is a KPI?

A quantifiable measure used to evaluate the success of an organization in meeting objectives for performance.

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Specific, Measurable, Achievable, Relevant, Time-Bound

What are SMART Goals?

A framework prioritizing clearly defined, realistic parameter sets for establishing metrics.

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Management by Objectives

What is MBO?

A personnel management model aiming to improve performance by defining objectives agreed upon by management and employees.

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Big Hairy Audacious Goal

What is a BHAG?

A long-term, 10-to-25-year overarching vision statement designed to fundamentally shift a company's trajectory.

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Objectives, Goals, Strategies, and Measures

What is OGSM?

A one-page strategic planning framework used to connect a top-level vision to bottom-level execution.

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Objectives and Key Results

What are OKRs?

A collaborative goal-setting protocol used by teams and individuals to set challenging, ambitious goals with measurable results.

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North Star Metric (NSM)

What is a North Star Metric?

The single most important key indicator that best captures the core value your product delivers to its customers.

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Leading & Lagging Indicators

Leading vs. Lagging Indicators

The classification of metrics determining whether a metric predicts future success or purely reports past performance.

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Stretch Goal

What is a Stretch Goal?

A high-effort, high-risk goal intentionally set above normal standards to attract breakthrough innovation.

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Initiatives & Tasks

What are OKR Initiatives?

The specific operational projects, tasks, or hypotheses your team executes hoping to move the needle on a Key Result.

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Goal Alignment

Vertical vs. Horizontal Alignment

The process of ensuring all individual and team goals fundamentally connect to the overarching company vision.

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Weekly Check-in Cadence

What is an OKR Check-in?

A recurring, lightweight ritual where teams update metric progress and highlight active blockers.

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Sandbagging

What is Sandbagging?

The counter-productive practice of intentionally setting low or easily achievable goals to guarantee success.

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Cascading Goals

What are Cascading Goals?

A traditional goal-setting method where top-level objectives flow downwards, strictly dictating the goals of the layers beneath them.

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Outputs vs. Outcomes

Outputs vs. Outcomes

The vital distinction between the work you do (Output) and the measurable impact that work has on the business (Outcome).

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Objective

What is an Objective?

The qualitative destination in an OKR system that describes what a team wants to achieve and why it matters.

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Key Result

What is a Key Result?

A measurable indicator proving whether progress toward an Objective is actually happening.

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OKR Scoring

How does OKR scoring work?

The practice of grading OKRs at the end of a cycle to understand progress, learning, and ambition level.

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Confidence Level

What is a confidence level in OKRs?

A simple forecast signal showing how likely a team believes it is to hit a Key Result based on current evidence.

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Baseline and Target

Baseline vs. Target

The starting value and desired end value used to define a measurable Key Result clearly.

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Goal Owner / DRI

What is a goal owner?

The directly responsible person accountable for driving a goal forward, coordinating decisions, and reporting progress.

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Weekly Business Review (WBR)

What is a Weekly Business Review?

A recurring operating meeting where leaders review metrics, risks, and decisions needed to keep execution on track.

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Committed and Aspirational OKRs

Committed vs. Aspirational OKRs

The distinction between goals the team must hit and goals designed to stretch performance beyond the current operating plan.

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Balanced Scorecard

What is a Balanced Scorecard?

A strategy management framework that tracks performance across financial and non-financial dimensions, not just revenue.

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