A complete OKR history: From Intel to the modern workplace

Objectives and Key Results (OKRs) have become one of the most popular and effective frameworks for goal-setting in modern organisations. Originally designed to create alignment, focus, and measurable progress, OKRs have played a pivotal role in driving innovation and performance in companies like Google, Intel, and thousands of others worldwide. As businesses have evolved—particularly in the face of rapid technological advancements and the rise of remote work—so has the OKR framework, adapting to new challenges and opportunities.

In this article, we will explore the entire history of OKRs, from their early roots in Management by Objectives (MBOs) developed in the 1950s, through their refinement at Intel in the 1970s, to their widespread adoption by Silicon Valley tech giants like Google in the early 2000s. We will also examine the mainstream adoption of OKRs between 2000 and 2020, spurred on by the publication of Measure What Matters, and how OKRs have continued to evolve in the era of remote and hybrid work in the 2020s.

By understanding how OKRs have developed across these eras, we’ll see how this simple but powerful framework has become an essential tool for modern organisations. It helps teams stay aligned, agile, and focused on delivering measurable results in an ever-changing btusiness landscape.

Before OKRs: Origins in Management By Objectives (MBOs)

The history of OKRs (Objectives and Key Results) can be traced back to the mid-20th century, starting with Management by Objectives (MBOs), a framework developed by Peter Drucker in his 1954 book The Practice of Management. Drucker’s philosophy was that employees and managers could achieve better results if they had clear, measurable goals that were aligned with the organisation's overall objectives.

The MBO framework emphasises several key principles:

• Goal clarity: Employees should understand their objectives and how they contribute to the organisation’s success.
• Engagement: Employees should be involved in setting their goals.
• Accountability: Progress should be measured, and employees should be held accountable for achieving their objectives.

However, MBOs became less effective over time for fast-changing, modern organisations. The annual review process was too slow, and MBOs often focused more on individual performance than team-based results. These limitations would eventually lead to a more agile and outcome-focused framework: OKRs.

The birth of OKRs at Intel (1970s)

The modern OKR framework was born in the 1970s at Intel, led by Andy Grove, widely regarded as the father of OKRs. Grove built upon the MBO framework but introduced a more agile, goal-oriented approach that emphasised clarity and accountability while allowing for greater flexibility in goal-setting.

In his book High Output Management (1983), Grove described how Intel used OKRs to remain competitive, particularly during their transition from producing memory chips to becoming a dominant microprocessor force. Grove’s key innovation was the introduction of Key Results, which allowed teams to measure progress through specific, quantifiable outcomes.

OKRs at Intel were structured around two core components:

• Objectives (the WHAT): These are ambitious, inspiring goals the organisation aims to achieve.
• Key Results (the HOW): These measurable outcomes indicate success in achieving the objective.

This combination of aspirational objectives with measurable key results created a system that was clear, trackable, and focused on outcomes. It was designed to be adaptable and frequently revisited, typically on a quarterly basis, which was critical for keeping Intel nimble in a rapidly changing industry.

MBO vs OKR: Key differences and evolution

The key difference between MBOs and OKRs lies in their approach to flexibility, measurement, and ambition. MBOs focused on setting goals annually, often tied to individual performance reviews and compensation. This framework encouraged safe, achievable goals but lacked agility, making it difficult to adapt to changing market conditions. Moreover, MBOs were usually siloed, with limited transparency or collaboration between teams, which often stifled innovation and cross-functional alignment.

In contrast, OKRs introduced a more agile and transparent approach, built for fast-paced environments. OKRs focus on shorter, more frequent goal cycles (typically quarterly), with measurable Key Results to ensure accountability and clear outcomes. The evolution from MBOs to OKRs occurred because businesses needed a more flexible, outcome-driven framework that encouraged innovation and ambitious "stretch goals" while allowing for continuous feedback and adjustments. OKRs help organisations align their efforts across teams, break down silos, and stay focused on measurable results, all of which are essential in today’s fast-changing business landscape.

OKRs at Google and Silicon Valley expansion (1990s)

In 1999, OKRs found their way to Google, when John Doerr, a venture capitalist at Kleiner Perkins and former Intel employee, introduced the framework to the company’s founders, Larry Page and Sergey Brin. Google was a fast-growing company at the time, and Doerr recognised that OKRs could help them maintain focus and alignment amid rapid expansion.

Google’s implementation of OKRs marked a turning point in the framework’s history, as the tech giant’s success helped popularise OKRs across Silicon Valley. OKRs became central to Google’s internal culture, where they were used to:

• Align teams: OKRs provided a shared framework that helped teams across the company focus on common goals.
• Encourage innovation: Google set stretch goals, which were highly ambitious and encouraged teams to aim higher than they might otherwise.
• Measure success: The key results provided measurable indicators of progress, ensuring accountability.

Google’s use of OKRs inspired other tech companies like LinkedIn, Twitter, Airbnb, and Dropbox to adopt the framework. OKRs were perfectly suited to the fast-moving environment of Silicon Valley, where agility, innovation, and rapid growth were paramount. The quarterly review cycle was much more effective than traditional annual goals, allowing teams to pivot or realign objectives quickly.

Widespread adoption and evolution (2000-2020)

The 2000s marked the beginning of OKRs transitioning from a niche framework used by early adopters in Silicon Valley to a globally recognised methodology for goal setting and organisational alignment.

Expansion in the tech world

After Google’s successful implementation of OKRs in 1999, many companies in the tech sector began to adopt the framework. OKRs became synonymous with the fast-paced, high-growth environment of startups, particularly those backed by venture capital firms, where scalability and alignment were crucial for success.

• LinkedIn, Twitter, Dropbox, Airbnb, and many other tech companies saw the benefits of OKRs, especially in keeping distributed and rapidly growing teams aligned around core objectives.

By using OKRs, these companies could keep ambitious growth targets without losing sight of day-to-day execution. The structure provided clarity in terms of what needed to be achieved, while also pushing teams to reach for bold and innovative goals—often referred to as “stretch goals” or moonshots.

The rise of SaaS tools for OKR tracking

See: Measure What Matter's recommended OKR tools

As more companies adopted OKRs, the need for tools to track and manage them grew. In response, several SaaS platforms emerged to facilitate the adoption of OKRs, making it easier for organisations to digitise and streamline their processes. Tools like Gtmhub, Ally.io, and Tability began gaining popularity, allowing businesses to centralise their OKRs, monitor progress, and maintain alignment across teams.

These platforms also enabled greater transparency, as OKRs could be made visible across departments, fostering a culture of shared goals and collaboration. Teams could easily adjust and realign OKRs based on real-time data, increasing the agility and responsiveness of organisations to market changes.

John Doerr’s book and the mainstreaming of OKRs

In 2017, the release of John Doerr’s book Measure What Matters marked a turning point in the widespread adoption of OKRs outside the tech sector. The book popularised the OKR framework by sharing stories of how some of the world’s most successful companies used OKRs to achieve incredible results.

Doerr’s book also introduced readers to the concept of CFRs (Conversations, Feedback, and Recognition), which emphasised the need for continuous dialogue and feedback in the context of OKRs. This approach aimed to ensure that OKRs didn’t become static documents but instead part of an ongoing conversation about growth and performance.

With Measure What Matters serving as a handbook for modern goal-setting, more organisations—spanning industries like finance, healthcare, education, and manufacturing—began to adopt the OKR framework.

The Shift from annual to quarterly OKRs

One of the key reasons for the rise of OKRs during this period was the increasing recognition that annual goal-setting was insufficient in dynamic industries. Companies like Google and Netflix showcased how OKRs, often set quarterly, provided a framework that was agile enough to adapt to rapidly changing conditions. This quarterly cadence allowed teams to pivot, recalibrate, and remain focused on key objectives as market conditions evolved.

As a result, OKRs became instrumental in helping companies navigate the economic uncertainties of the 2008 global financial crisis. Organisations needed to be more agile and adaptable, and OKRs provided the framework to continuously reassess goals and adjust strategic priorities without losing alignment.

OKRs in the era of remote and hybrid workplaces (2020s)

The shift to remote and hybrid work, accelerated by the COVID-19 pandemic, significantly increased the demand for tools and frameworks like OKRs to maintain alignment across increasingly distributed teams. As companies quickly transitioned to working from home, many needed help keeping employees connected to their strategic objectives, leading to a surge in adopting OKRs as a solution. The shift to remote work needed a shift in the way we worked as well.

Because of this transition, OKRs have become a staple for not only enterprise businesses but also early startups. A problem that used to plague teams of 100 to thousands is now a common issue teams of 5-20 have started to deal with as well. OKRs have become the new default way for teams to stay aligned across objectives and maintain focus when they’re not in the same room all the time.

The role of OKRs in remote and hybrid workplaces

The transition to remote and hybrid work fundamentally changed how businesses operated. Prior to 2020, physical offices were often the central hub for collaboration, brainstorming, and ensuring alignment on company goals. With employees scattered across different cities, countries, and time zones, there was a need for a framework that could keep everyone on the same page, regardless of location.

OKRs emerged as a critical tool for addressing the challenges posed by distributed workforces:

• Clear Direction Across Teams: OKRs provided a common language for setting and communicating goals, ensuring that everyone, no matter where they were located, knew what the organisation aimed to achieve and how their work contributed to these goals.
• Alignment in Asynchronous Work: With teams often working asynchronously, OKRs gave employees a clear set of priorities. This allowed individuals to work independently without losing sight of how their tasks aligned with broader company objectives, even when they weren’t collaborating in real-time.
• Maintaining Focus: OKRs helped prevent teams from becoming siloed by providing a transparent system where goals and progress were visible to everyone. This transparency enabled cross-functional collaboration, even when face-to-face meetings weren’t possible.

Adoption of digital OKR platforms

The digital transformation driven by remote work also fueled the rise of OKR software platforms that could manage the complexities of goal-setting across distributed teams. Companies increasingly turned to cloud-based solutions such as Tability, Ally.io, and GTMhub, which offered advanced features for:

• Tracking progress in real-time.
• Automating updates on key results.
• Providing instant feedback on goal attainment.

These platforms also emphasised integration with collaboration tools like Slack, Microsoft Teams, and Zoom, further embedding OKRs into the daily workflows of remote teams. With these tools, employees could stay connected to their goals and collaborate seamlessly, ensuring that the physical distance between team members didn’t disrupt strategic alignment.

Strategic alignment in a changing world

As remote work became more prevalent, organisations began to focus more on strategic alignment than ever before. Without the physical presence of managers and co-workers, it became essential for employees to have a clear understanding of the company’s mission, vision, and priorities. OKRs helped organisations maintain this alignment by breaking down high-level strategic goals into smaller, actionable objectives for each team and individual.

Moreover, the quarterly cadence of OKRs allowed companies to adapt quickly to the rapidly changing business environment. The pandemic highlighted the need for agility, and many companies leveraged OKRs to pivot their business models, update their product strategies, or manage their teams more effectively during crises.

Cultural impact of OKRs in the new workplace

OKRs also had a profound cultural impact on organisations transitioning to remote work. By promoting transparency, accountability, and collaboration, OKRs helped build a culture where employees were empowered to take ownership of their goals and drive their performance.

With regular check-ins and feedback loops, OKRs fostered continuous improvement and encouraged teams to stay connected to the organisation’s broader purpose. This was particularly important in a remote setting, where it was easy for employees to feel disconnected from the company’s long-term goals.

Conclusion: Enduring impact of OKRs on modern business

The journey of OKRs from their origins in Peter Drucker’s Management by Objectives to their widespread use in today’s remote and hybrid workplaces is a testament to the framework’s versatility and enduring value. Over the decades, OKRs have evolved to meet the changing needs of organisations, from the fast-paced environments of Silicon Valley tech companies to global corporations operating across multiple time zones.

At its core, the success of OKRs lies in their simplicity and adaptability. By setting clear, measurable goals and aligning teams around shared objectives, organisations can maintain focus, drive innovation, and achieve meaningful outcomes, even in uncertainty. As businesses continue to adapt to the challenges of the modern workplace, particularly in an increasingly remote and distributed world, OKRs have proven to be a critical tool for keeping teams connected to their strategic goals and fostering a culture of accountability and continuous improvement.

Looking ahead, the principles behind OKRs will likely remain essential as organisations strive to stay agile, aligned, and results-driven in an ever-evolving business landscape. As long as there are ambitious goals to achieve, OKRs will continue to serve as a guiding framework for turning those aspirations into measurable success.