Industry Trends

SMART Goals vs. OKRs: Driving Results in Any Organization

By Julian Kelly

Posted on June 4, 2025

In the current goal-oriented environment, successful goal-setting is crucial for achievement. Two widely used models—SMART goals and OKRs (Objectives and Key Results)—provide structured approaches to creating and monitoring goals but are applied for different reasons.

SMART goals concentrate on concise, actionable, and quantifiable results and are best suited for individual tasks and short-term goals. OKRs encourage bold, result-driven thinking and align team efforts with organizational objectives.

Though both are driven by performance, the right one for your company depends on your company’s culture, size, and objectives. This article discusses the variation and strengths of each model to aid you in creating a more directed, productive team.

What Is OKR?

OKR is short for Objectives and Key Results—a goal-setting framework that enables individuals and teams to connect their work with measurable results. First built at Intel by Andy Grove and subsequently brought into widespread use by organizations such as Google through John Doerr, OKRs have become an effective tool for enhancing focus, accountability, and performance in today’s organizations.

The Objective specifies what you’re aiming to do—it must be bold, motivational, and concise. The Key Results describe how you’ll be measuring success—they must be precise, time-defined, and measurable.
OKRs can be used across different teams and functions. Here’s an example of how they could be used in a Customer Success team:

Example OKRs for Customer Success

Objective: Create a fantastic first impression with new customers

Key Result 1: Shorten initial call response time by 25%

Key Result 2: Enhance the speed and accuracy of accessing customer information by 35%

Goal: Better handle customer problems

Key Result 1: Increase the rate of troubleshooting chats by 10%

Key Result 2: Raise the customer satisfaction (CSAT) score by 20%

What Are SMART Goals?

SMART objectives are an exact and efficient means of creating meaningful goals that actually result in something. The theory has its roots in the Management by Objectives concept developed by Peter Drucker, but it was George T. Doran who put it into practice in 1981 when he coined the SMART term.

Unlike vague or overly ambitious goals, SMART goals provide a simple, practical blueprint for creating targets that are easy to track and more likely to be achieved. Whether it’s remote team , individuals, in-house teams, and entire organizations, it works well for all.

Here’s what SMART stands for:

S – Specific: Your target must be clear and precise. Rather than making a statement like “I want to improve marketing,” a specific one would be “I want to master email marketing tactics.”

M – Measurable: You must have some means of measuring progress. An example of a measurable goal would be “acquire 500 newsletter subscribers in three months.” That way, you will know precisely when you’ve reached the target.

A – Achievable: The goal must push your skills, but remain within reach. Unrealistic expectations create nothing but frustration. Ask yourself—based on the time and resources, is this feasible?

R – Relevant: It must be important to you or your organization. It must align with higher priorities or values. Don’t pursue something for the sake of looking good on paper.

T – Time-Bound: Deadlines give us a sense of urgency and concentration. A time-bound objective puts you on a schedule—such as wanting to finish a project within 30 days instead of “someday.”

OKR vs SMART Goals: What Do They Have in Common?

While groups tend to view OKRs and SMART goals as opposing methods, the reality is—they’re constructed on a whole lot of the same fundamental concepts. Both models work to propel clarity, direction, and responsibility in goal-setting. Let’s discuss what unites them.

A Common Origin Story

Both OKRs and SMART goals have their roots in the same location—Management by Objectives (MBO), a theory popularized by Peter Drucker in the 1950s. The theory behind MBO is straightforward but unyielding: organisations work better when individuals have clear objectives. OKRs and SMART goals are both just updated versions of the same line of thinking, adapted to fit the quicker, more agile nature of work today.

Clarity Over Confusion

Clarify one of the common factor in both OKRs and SMART goals. Whether you’re setting SMART goals or creating OKRs, clarity is essential. These systems enable the elimination of fuzzy targets such as “do better at work” and substitute them with clear, actionable targets that everyone can get behind.

Action Plans with Timelines

SMART goals and OKRs both believe in structure. You’re not just setting an objective—you’re backing it with clear steps and a deadline. They push teams to break down big goals into measurable outcomes that can be tracked over time, making it easier to evaluate progress and pivot when necessary.

No Red Tape, Just Results

Neither OKRs nor SMART goals have a rulebook or governing body to mandate their implementation. They’re guidelines, designed to be used in your company’s unique culture and necessity. This lack of formal guidance is a benefit—it enables creative interpretation and simplicity of implementation within departments.

Designed with Structure in Mind

Fundamentally, both systems are based on systematic thinking. SMART goals use their five-letter acronym (Specific, Measurable, Achievable, Relevant, Time-bound), whereas OKRs are divided into Objectives and Key Results. Both give a template that assists teams in defining their goals in a manner that’s aligned, measurable, and results-oriented.

OKRs vs SMART Goals: What Separates Them?

OKRs and SMART goals are equally effective tools for setting and monitoring objectives—but they get at the process of setting goals in very different ways. Here’s a closer examination of where they differ in structure, purpose, and effect:

OKRs Are a Framework, SMART Goals Are a Template

At a basic level, OKRs (Objectives and Key Results) offer a whole system—a structure that is intended to align teams and facilitate progress throughout the organization.

SMART goals work more as a checklist or writing guide. They ensure a goal is well-written, but don’t provide a built-in process for managing or aligning those goals at scale.

OKRs Are Bold and Aspirational, SMART Goals Are Tactical and Practical

OKRs are designed to stretch. They tend to be stretch goals that will not necessarily be completed in full—usually, 70% fulfillment is a success. The intention is to set high and encourage innovation even if 100% isn’t achieved.

SMART goals, however, are created to be accomplished. They are ideal for something that must be done accurately and routinely—making them perfect for individual jobs and operational objectives.

OKRs Allow Innovation Without Affecting Pay, SMART Goals Tend to Be Aligned with Compensation

Since OKRs are aimed at challenging and trying, they are not usually connected to performance appraisal or bonuses. This disconnection gives employees the freedom to dream big without the fear of failure.

SMART goals, however, tend to be aligned with performance reviews—since they can be attained and related to individual performance, it becomes the norm for them to be included in pay or promotion decisions.

OKRs Are Flexible And Dynamic, SMART Goals Are Tied Down

The business environment changes rapidly—and OKRs are designed to keep pace. Firms can modify OKRs as needed during shift, even during the middle of a cycle. Month by month, quarter by quarter, year by year, OKRs provide flexibility.

SMART goals are more typically set and left in place for a longer period of time—most commonly one year—and are not as readily adjustable on short notice.

OKRs Are Transparent by Design, SMART Goals Are Typically Private

One of the fundamental strengths of OKRs is transparency. When goals are made public across teams and departments, it promotes alignment and cross-functionality. Everyone can visualize where others are going.

SMART goals, on the other hand, tend to be more personal and kept confidential, unless a team leader decides to make them available more broadly.

OKRs Enable Broader Input, SMART Goals Are Often Set Top-Down

OKRs solicit a collaborative style—they can be formed top-down, bottom-up, or cross-functionally. That makes them inclusive and better focused on organizational priorities.

SMART goals are normally established by managers for their direct reports with a top-down approach. It is great for task-oriented roles but will lack the potential for team-wide sync.

OKRs Measure Multiple Outcomes, SMART Goals Focus on One

OKRs typically measure multiple key results for a single objective, providing a more balanced picture of progress. That way, teams can view success through multiple lenses—speed, quality, impact, etc.

SMART goals, by contrast, are typically constructed around a single metric, making them easier but occasionally less representative of the whole picture.

Checklist: When to Use SMART Goals vs. OKRs

SMART goals excel when the emphasis is on well-specified, defined tasks—particularly in endeavors that require a formal plan and short-term action. They’re ideal for groups or individuals who must know precisely what to do, how to gauge success, and when they must do it.

Whether it’s introducing a marketing campaign, reaching a sales quota, or finishing a product feature, SMART goals provide a firm, no-frills guide to achieving it.

OKRs (Objectives and Key Results), conversely, are designed for higher-level thinking. They’re perfect for companies or teams pursuing innovation, alignment, and lasting results.

OKRs transcend the to-do list—they get you to think about why something is important and how it aligns with the overall company mission.

Whereas SMART goals narrow in on concrete outcomes, OKRs are more strategic in focus. They connect key results to an overarching goal, so that all efforts lead to significant forward motion. It not only enables improved resource allocation and time management—it also creates room for experimentation and ambitious thinking.

Another significant OKR strength? Alignment and transparency. Everybody in the company can view how their work contributes to common goals, which reinforces teamwork and creates a sense of purpose. It’s a means to maintain the entire team moving in a single direction—even when they’re tackling very different assignments.

In short:

Employ SMART goals where you require focus, accuracy, and well-defined tasks.

Apply OKRs if you need to motivate, align, and drive growth companywide.

Most companies apply both—because sometimes, shooting for the bull’s-eye and shooting for the stars can go together.

Conclusion

SMART goals and OKRs both present robust frameworks for setting and attaining objectives—but for different purposes. SMART goals work best for formal, short-term plans that need accuracy and accountability, while OKRs work best to promote innovation, alignment, and large-scale growth within teams.

Whether to use them, or even combine the two, is up to your organization’s goals, culture, and intended results. The most important thing is to be consistent, monitor progress regularly, and be flexible to change as priorities evolve.

With the proper goal-setting methodology, you can empower your team, improve performance, and keep everyone headed in the same direction.

FAQs

1. What is the primary difference between SMART goals and OKRs?

SMART goals deal with particular, quantifiable end results, whereas OKRs are higher-level, aspirational systems focused on company alignment and development.