Many teams struggle to pick between OKRs and SMART goals. This choice matters. Microsoft found that when employees know their goals, they are almost four times more likely to stay with the company for over two years.

OKRs and SMART goals both help teams set clear targets, but they work in different ways. OKRs push teams to aim high and think big. SMART goals focus on clear, practical steps. The right choice can shape how your team works and grows.

This blog explains what OKRs and SMART goals are, how they differ, when to use each, and how to pick what fits your team best.

What is OKR and how does it work?

OKRs (Objectives and Key Results) have become the go-to goal-setting system for companies like Google, LinkedIn, and Twitter. The approach breaks down big, ambitious goals into measurable outcomes—which is perfect when your team needs both clear direction and room to adapt.Let's walk through it.

Objectives: The big picture

Think of objectives as your destination. They represent what you want to accomplish and should be:

  • Ambitious yet achievable
  • Qualitative rather than quantitative
  • Inspirational and action-oriented
  • Limited to 3-5 per quarter

Objectives answer the question: "Where do we want to go?"
For example, an objective might be "Create an exceptional customer experience" or "Expand market presence in the Northeast region."

Key Results: How you measure success

Key Results are where things get specific. These measurable milestones track your progress toward objectives. Each objective typically has 3-5 key results that:

  • Contain specific metrics
  • Are quantifiable and verifiable
  • Challenge teams without being impossible
  • Have clear timelines (usually quarterly)

Unlike objectives, key results are all about numbers. They take that qualitative objective and make it something you can actually measure.
Good key results answer "How will we know when we've arrived?"

For example, a key result might be "Achieve a CSAT score of 90% or higher by Q2" or "Increase qualified leads from the Northeast by 25%."

OKRs example in action

Here's how a marketing team might structure their OKR:

Objective: Build our brand as a thought leader in project management

Key Results:

  1. Increase website traffic by 30%
  2. Publish 12 high-quality blog posts
  3. Achieve 500 newsletter signups
  4. Secure speaking engagements at 3 industry conferences

Notice how the objective gives direction while the key results provide specific targets you can track.

Why fast-moving teams love OKRs

Fast-moving teams get several benefits from OKRs. They create alignment—everyone knows how their work connects to company goals. The quarterly timeline gives you structure without locking you into something that stops making sense.

But here's what makes OKRs different: they encourage ambitious thinking. OKRs aren't designed to be achieved 100% of the time. Hitting about 70% of your key results is actually considered successful, which pushes teams to reach beyond what feels comfortable.

The transparency factor matters too. Teams can see each other's objectives and progress, creating natural opportunities for collaboration and support across departments.

ThriveSparrow helps make this easier to manage—especially when you're trying to scale goal-setting across multiple teams without losing visibility.

Want to see how it works in practice? Check out how teams are using OKRs more effectively with ThriveSparrow.

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What are SMART Goals and how do they work?

SMART goals have been the go-to framework since George T. Doran introduced them back in 1981. This practical approach turns wishy-washy intentions into clear, actionable targets that actually get things done.

What does SMART stand for?

SMART breaks down into five components: Specific, Measurable, Achievable, Relevant, and Time-bound. Each piece tackles a different aspect of goal-setting that helps teams and individuals create objectives with real clarity.

What Does the ‘S’ in SMART Goals Stand For?
S: Specific

Specific goals answer the important questions upfront. What exactly needs to happen? Who's handling it? What steps are involved? Instead of something vague like "improve customer service," you'd create something concrete: "reduce customer response time by implementing a new ticketing system."

What Does the ‘M’ in SMART Goals Stand For?
M: Measurable

Measurable goals include concrete numbers to track your progress. Here's something interesting: research shows that people who write down their goals with measurable benchmarks have a 76% success rate in achieving them, compared to only 43% for those who don't document anything.

What Does the ‘A’ in SMART Goals Stand For?
A: Achievable

Achievable goals push you past your comfort zone without setting you up for failure. They balance ambition with reality, taking into account your actual resources, time, and capabilities.

What Does the ‘R’ in SMART Goals Stand For?
R: Relevant

Relevant goals connect to your bigger picture. They answer the "why this matters" question and link individual work to team or company success.

What Does the ‘T’ in SMART Goals Stand For?
T: Time-bound

Time-bound goals come with specific deadlines that create urgency. Without timeframes, even the most well-defined goals can drift along forever.

SMART goals example in action

Here's how a complete SMART goal looks in practice:

"Increase monthly website traffic by 25% within the next quarter by publishing eight high-quality blog posts and optimizing five existing pages for SEO."

Notice how every element is covered—specific action, measurable outcome, achievable target, relevant to business growth, and time-bound with a quarterly deadline.

Why fast-moving teams use SMART goals

Fast-moving teams gravitate toward SMART goals because they cut through confusion without adding complexity. They create accountability through specific metrics and deadlines while staying flexible enough to adapt when circumstances change.

SMART goals also help teams allocate resources efficiently and measure progress objectively. Even when workloads get intense, everyone stays focused on what actually matters.

OKR vs SMART goals: What's the real difference?

Now here's where things get interesting.

Beyond the surface-level stuff we've covered, there are some pretty fundamental differences that'll make or break your choice between these frameworks. And honestly? Understanding these distinctions is what separates teams that just "do goals" from teams that actually achieve them.

OKRs are aspirational, SMART goals are practical

Here's something most people get wrong about OKRs: they're not meant to be achieved 100% of the time. In fact, if you're hitting all your OKRs, you're probably not thinking big enough.

OKRs intentionally set ambitious targets—that "moonshot" mentality we talked about earlier. You're expected to hit around 70% completion, and that's considered winning. This approach pushes teams toward breakthrough thinking and innovation.

SMART goals take the opposite approach. They're designed to be fully achievable with a clear roadmap to success. No moonshots here—just practical, realistic outcomes you can bank on.

OKRs are public, SMART goals are private

Transparency is a core principle of OKRs. Everyone can see everyone else's objectives and progress, which creates this natural accountability and collaboration across teams. It's like having your goals on a billboard—scary at first, but incredibly powerful for alignment.

SMART goals typically stay between you and your manager. They're personal performance metrics, not company-wide initiatives. This privacy can feel safer, but you miss out on the collaborative magic that happens when teams can see how their work connects.

OKRs are flexible, SMART goals are fixed

Market conditions change fast. Customer needs evolve. Priorities shift.

OKRs acknowledge this reality with quarterly cycles that let you pivot when needed. If an objective becomes irrelevant or a better opportunity emerges, you can adjust course at the next cycle.

SMART goals tend to be more set-in-stone affairs, often locked in for annual cycles. This provides stability and prevents constant direction changes, but it can leave you pursuing outdated objectives when the world moves on.

OKRs focus on outcomes, SMART goals focus on tasks

This might be the biggest philosophical difference.

OKRs focus on what you want to accomplish—the impact, the outcome, and the change you want to see in the world. They measure results, not activities.

SMART goals often get into the weeds of how you'll get there. They detail specific tasks and actions, creating a clear execution roadmap. Great for knowing exactly what to do, but you might miss the forest for the trees.

SMART goals are often tied to compensation

Here's the most practical difference: SMART goals are often tied directly to your paycheck. Performance reviews, bonuses, promotions—they're all connected.

OKRs deliberately separate goals from compensation. When failure doesn't hurt your wallet, teams feel safer taking the big swings that might not pan out but could change everything.

Neither approach is inherently better—they're just solving different problems. Your choice depends on what your team needs most: ambitious innovation or reliable execution.

Pros and cons of OKRs and SMART goals

OKRs and SMART goals have strengths and limits. Each works best in certain situations. To help you decide, here is a clear list of the pros and cons for each framework.

OKRs: Pros and Cons

Pros:

  1. Encourage innovation: Teams feel free to aim high and try new things.
  2. Adaptable to change: Quarterly cycles help teams adjust to fast-moving environments.
  3. Support teamwork: OKRs push for cross-team work and shared results.

Cons:

  1. Can be unclear: People who like clear steps may feel lost.
  2. Hard to learn: Teams often struggle at first with the new mindset.
  3. Focus on outcomes, not tasks: This shift takes time to get right.

SMART Goals: Pros and Cons

Pros:

  1. Give clear direction: Everyone knows what to do and when.
  2. Easy to track: Progress is easy to measure.
  3. Support individual work: Great for tracking one person’s results.

Cons:

  1. Can be too safe: Teams may set easy goals instead of big ones.
  2. Not flexible: Hard to change if the market shifts.
  3. Focus on tasks, not big ideas: Limits creative thinking.

When to use OKRs vs SMART goals

Picking between OKRs and SMART goals isn't about finding the "better" framework—it's about matching the right tool to your specific situation. Here's how to make that call.

1. Use OKRs for long-term, strategic goals

OKRs work best when you're tackling big, organization-wide objectives. They excel at strategy execution where you need transparency and focus across company, departmental, and team levels. Think of them as your go-to for ambitious, innovation-driven work.

Go with OKRs when you value continuous improvement and need to keep pivoting. They're particularly powerful for aligning multiple teams around shared objectives—something that's crucial in larger organizations where departments tend to work in silos.

2. Use SMART goals for short-term, tactical tasks

SMART goals thrive when you need specific performance measures and crystal-clear action plans. They're built for breaking down large objectives into smaller, manageable chunks that you can actually execute.

Choose SMART goals when you're working with shorter timeframes or focusing on individual and departmental performance. Their task-focused nature makes them perfect for tracking progress on specific projects rather than broader outcomes.

3. How to decide based on team size and culture

Your organization's size and culture matter more than you might think. Large companies usually benefit from OKRs' transparency and alignment capabilities. Smaller teams with well-defined roles benefit from SMART goals which are often more straightforward to implement.

Here's the thing: OKRs flourish in cultures that embrace experimentation and collaboration. They create shared responsibility across teams. SMART goals work better in environments that value clarity, simplicity, and precision over ambitious moonshots.

4. What type of goal is focused on the result?

OKRs are outcome-focused. They track progress toward desired results rather than task completion. This makes them ideal when you care more about impact than activities.

SMART goals track progress toward specific tasks or projects—making them better suited for process-oriented work where you can control the inputs and need predictable outputs.

How to combine OKRs and SMART goals

The Good news—you don't have to pick sides.

Many successful companies use both frameworks together, capturing the benefits of each while dodging their individual limitations.

These two approaches complement each other pretty well. One method that's working for teams is implementing "SMART OKRs" by applying SMART criteria to your objective-setting process. This creates goals that are Superlative (ambitious), Measurable, Aligned, Resourced, and Time-bound.

Here's another approach that's gaining traction: use SMART goals as your key results. Since key results need to be quantifiable measurements anyway, SMART goals fit perfectly here.

For example, if your objective is "Have OKRs become the lifeblood of our organization," your SMART key results might include "Everyone on the team owns an OKR" and "Achieve 100% commitment to OKRs by Q3".

Many organizations divide their goal-setting based on scope. Use OKRs for organizational or outcome-related goals that need transparency across departments. Apply SMART criteria for individual and output-related goals where people can control their outcomes. This is how you can combine OKRs and SMART goals for organizations to have better results.

💡 Pro Tips

  • There’s no perfect framework—consistency matters more than your choice
  • Start small. Try OKRs or SMART goals with one team before rolling out to everyone
  • Review and adjust your goals every quarter
  • Combine both frameworks for the best results

How to Turn SMART Goals into OKRs

Ready to give your SMART goals a makeover? You don't have to scrap everything you've built—you can transform your existing SMART goals into strategic OKRs without starting from scratch.

The first step is figuring out which of your current SMART goals actually matters strategically. Not every task-oriented goal needs the OKR treatment. Focus on the ones that connect to your company's bigger picture.

Once you've identified the right candidates, here's how to make the switch:‍

‍
Step #1: Extract the Objective from Your SMART Goal

Take the "Specific" part of your SMART goal and expand it into something more meaningful.

Instead of:

  • "Increase email subscribers by 20% this quarter"

Go with:

  • "Build an engaged email community that drives revenue"

One tells you what to do. The other tells you why it matters.

Step #2: Turn your metrics into key results

Here's where your SMART goal's "Measurable" component shines. That 20% subscriber This is where the "Measurable" part of your SMART goal becomes valuable.

  • That original 20% subscriber growth? That’s your first key result.
  • Add 2–3 more, like:
    • Achieve a 25% email open rate
    • Generate $10,000 in email-attributed revenue

Step #3: Aim higher with your targets

OKRs are meant to stretch your team.

  • If your SMART goal was a 20% increase, consider raising it to 30–40%.
  • Hitting 70% of an ambitious OKR is still considered a success.

Step #4: Broaden the timeframe

SMART goals usually come with shorter timelines. OKRs run on quarterly cycles—so extend your deadlines accordingly.

Step #5: Add team visibility

SMART goals often stay siloed or private. OKRs thrive on transparency.

  • Share them across teams
  • Build accountability
  • Spark collaboration and alignment
turn-smart-goals-into-okrs-steps-infographic

‍Want to make this process even easier?

ThriveSparrow helps you convert SMART goals into OKRs with just a few clicks. You can set bold goals, track progress and collect feedback from every angle, and keep your whole team aligned—all in one place.

Ready to see it in action? Sign up for ThriveSparrow today and give your goals the boost they deserve!

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FAQs

Q1. How do OKRs differ from SMART goals?

OKRs are aspirational and focus on outcomes, while SMART goals are practical and task-oriented. OKRs encourage ambitious thinking with a 70% achievement target, whereas SMART goals aim for full completion. OKRs are also typically public and flexible, while SMART goals are often private and fixed.

Q2. When should I use OKRs versus SMART goals?

Use OKRs for long-term, strategic objectives that require company-wide alignment and innovation. SMART goals are better suited for short-term, tactical tasks and individual performance tracking. The choice also depends on your team size and organizational culture.

Q3. Can OKRs and SMART goals be used together?

Yes, many successful companies combine both frameworks. You can create "SMART OKRs" by applying SMART criteria to your objective-setting process, or use SMART goals as key results within the OKR framework. This combination captures the benefits of both approaches.

Q4. Are OKRs tied to compensation like SMART goals often are?

Unlike SMART goals, which are frequently linked to performance reviews and compensation, OKRs are intentionally separated from financial incentives. This separation encourages risk-taking and ambitious goal-setting without the fear of financial penalties for falling short.

Q5. How can I transform SMART goals into OKRs?

To convert SMART goals into OKRs, start by extracting a more inspirational objective from your specific goal. Turn your measurable metrics into key results, aim for higher targets, broaden the timeframe to quarterly cycles, and increase visibility across the organization. This process helps shift focus from task execution to strategic outcomes.