“Originally known as a key factor in Google’s success, the "Objectives & Key Results" (OKR) method is now employed by many prominent German companies—such as Deutsche Bank, Bosch, SAP, and Rewe—as well as mid-sized firms like Renolit and Festo.
As a management framework, OKR aims to facilitate better strategy execution. What makes it unique is not the goal-setting system itself, but rather how goals are established, shared, and put into practice. OKR compels organizations to prioritize transparently and cascade goals down to the team level. Short measurement cycles and high levels of participation are intended to ensure that strategic goals guide daily actions.
Does this promise hold up in practice?
A joint study by the Centre for Performance Management & Controlling at the Frankfurt School of Finance & Management and the audit and consulting firm Deloitte addressed this question. The study surveyed 190 companies in Germany, including both users and non-users of OKR.
OKR addresses a fundamental issue: strategies often fail not because of how they are formulated, but because of how they are implemented.
The concept combines ambitious, qualitatively defined "Objectives" with measurable "Key Results."
Objectives describe a shared—and usually strategy-oriented—goal, while Key Results make the achievement of that goal concrete and allow progress to be measured.
Transparency and participation are central to this process: motivation stems from a sense of purpose, clarity regarding one’s own contribution to achieving the goal, and shared commitment.
The study presents a positive picture. In 78 percent of the companies, accountability for achieving goals increased following the introduction of OKR. Eighty-three percent reported clearer priorities in their day-to-day work. Furthermore, the more intensively OKR is used, the better the organization’s strategy execution capability is rated.
However, practice also reveals a downside: goals that are overly ambitious or difficult to operationalize can jeopardize the success of OKR implementation.
Particularly ambitious goals—so-called "stretch goals"—often fail to gain traction. The reference here is to deliberately ambitious goals—often called "stretch goals"—where achieving even 70 percent is considered a success. They are intended to spark new ways of thinking and acting. However, what is theoretically meant to be motivating often has a demotivating effect in many companies. In reality, highly challenging goals are frequently perceived by employees not as inspiring, but as discouraging. If time, budget, or decision-making autonomy are lacking, stretch goals lose their motivational power. Another potential reason is a failure to convey a sense of purpose to employees due to an unclear shared vision; instead of a spirit of renewal, frustration arises. Consequently, many companies opt for realistic goals rather than maximum targets.
It is not strategic ambition alone that determines the success of OKRs, but rather how they are translated into viable processes and routines. Companies that do not adopt OKRs primarily cite two reasons: the significant effort involved and satisfaction with existing management systems. This demonstrates that OKRs are generally viewed not merely as an add-on, but as an intervention that disrupts established planning and leadership structures.
Even where OKRs are already in use, implementation remains challenging.
Commonly cited issues include the high level of coordination required, a failure to track OKRs in day-to-day operations, and team skepticism.
Thus, the method does not work simply through the definition of new goals; it demands continuous reflection, visible progress, and an open approach to handling conflicting objectives.
OKRs are far more than a tool for measuring goal achievement. The method fundamentally alters how organizations set priorities, assign responsibility, and structure collaboration.
The fact that stretch goals are frequently replaced by more realistic targets is not merely an implementation issue; it indicates that goal-setting systems only function effectively when aligned with existing structures, decision-making autonomy, and cultural conditions.
Similarly, the significant effort required for implementation and the difficulties encountered in operationalization highlight the fact that OKRs transform established logics regarding planning, leadership, and coordination. Thus, OKR only becomes successful when it is understood as a guiding principle for collaboration, transparency, and strategic focus, and is appropriately embedded within the organization.
Ronald Gleich is Academic Director, Saskia Spang is Research Assistant, and Kim Louisa Dillenberger is Vice Academic Director of the Centre for Performance Management & Controlling at the Frankfurt School of Finance & Management.” [1]
1. Unternehmen mit der Google-Methode steuern: Das Konzept des Digitalkonzerns macht Schule / Von Ronald Gleich, Saskia Spang und Kim Louisa Dillenberger. Frankfurter Allgemeine Zeitung; Frankfurt. 13 Apr 2026: 18.
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