Objective key results and their role in modern performance management: a critical analysis of benefits, challenges, and integration with traditional tools

In the current era of rapid innovation and technological evolution, measuring business performance has become crucial for organizational success. Accurate performance measurement enables companies to identify areas for improvement, evaluate the effectiveness of business strategies, and make data-driven decisions. It has become an integral part of modern business management, allowing companies to adapt to the challenges and opportunities of an increasingly competitive and ever-changing market. The aim of this article is to provide an overview of an innovative goal setting methodology—“Objective Key Results” (OKRs)—by first examining their structure and definition, and then evaluating their application in various industries. Furthermore, this work aims to provide insight into the integration of OKRs with traditional performance measurement tools such as Balanced Scorecard, Hoshin Kanri, and Key Activity Indicators, exploring the synergies and differences between these methodologies. Lastly, the research provides guidance on how to implement OKRs within organizational processes along with a perspective on their practical usage. Hence, by presenting a critical analysis of OKRs and their potential benefits and challenges, this article seeks to provide a comprehensive understanding of their role in modern performance management.