OKR Grading
OKR Grading is the process of systematically evaluating all OKRs at the end of a cycle on a scale of 0.0 to 1.0. It provides an objective basis for reflection and helps teams continuously improve their goal-setting ability.
What is OKR Grading?
OKR Grading (also OKR evaluation) is the formal process of systematically assessing the achievement of all Key Results at the end of each OKR cycle. While OKR Grading and OKR Scoring are often used interchangeably, "Grading" emphasizes the structured evaluation process with clear criteria.
The Grading Scale
The standard scale ranges from 0.0 to 1.0:
- 0.0–0.3: No significant progress achieved
- 0.4–0.6: Partial success, but significantly below target
- 0.7: Ideal for Moonshot OKRs – ambitious goal nearly achieved
- 0.8–1.0: Outstanding result, or goal was set too conservatively
The Grading Process
Effective OKR Grading follows a clear structure:
- Data collection: Gather current values for all Key Results
- Self-assessment: Each team evaluates their own OKRs
- Contextualization: Consider external factors and changed conditions
- Calibration: Cross-team alignment to ensure consistent standards
- Documentation: Record scores and insights for the retrospective
Grading for Different OKR Types
The interpretation of grades depends on the OKR type:
- [Moonshot OKRs](/en/glossar/moonshot-okr): 0.7 is the sweet spot. Consistently scoring 1.0 indicates sandbagging.
- [Committed OKRs](/en/glossar/committed-okr): 1.0 is expected. Any shortfall requires a root-cause analysis.
OKR Grading is not a judgment of employee performance. It is a calibration instrument: How well can we plan, and what do we learn from the deviation?
Common Grading Mistakes
- Linking grades to compensation: Leads to conservative goals and dishonest evaluations
- Score without conversation: The number alone is worthless – context makes the difference
- Inconsistent standards: Different teams evaluate by different criteria
- Hindsight bias: Treating past events as if they were predictable
OKR Grading with Northly
Northly automates data collection for OKR Grading and calculates Key Result scores from weekly check-in data. The platform supports cross-team calibration and archives grading results for trend analysis across multiple cycles.
Related Terms
OKR Scoring
OKR Scoring is the structured process of evaluating Key Result achievement at the end of an OKR cycle. Typically a 0.0 to 1.0 scale is used, where a score of 0.7 (70%) is considered successful for stretch goals.
OKR Retrospective
An OKR Retrospective is a structured reflection session at the end of each OKR cycle where teams analyze what worked in the OKR process, what didn't, and what concrete improvements should be implemented for the next cycle.
Key Result
A Key Result is a quantitative, measurable outcome that indicates progress toward an Objective. Each Key Result has a clear metric, a starting value, and a target value, answering the question: "How do we know we're on the right track?"
OKR Cycle
The OKR Cycle is the recurring time period – typically one quarter – during which OKRs are planned, tracked, evaluated, and reflected upon. It creates a rhythm of focus and learning that connects strategic goals with daily work.
Frequently Asked Questions
What is the difference between OKR Grading and OKR Scoring?
The terms are often used interchangeably. "Scoring" refers more to the numerical assessment (0.0–1.0), while "Grading" encompasses the entire evaluation process – including contextualization, calibration, and documentation. In practice, both refer to the same procedure.
How often should OKR Grading be performed?
Once at the end of each OKR cycle (typically quarterly). Additionally, mid-cycle interim gradings can help correct course early. The final grading forms the basis for the retrospective.
Should OKR Grading be tied to bonuses?
Absolutely not. Linking OKR grades to compensation leads to sandbagging – teams deliberately set easily achievable goals to guarantee high scores. OKR Grading serves learning and calibration, not performance evaluation.
What is a good OKR grade?
For Moonshot OKRs, 0.6–0.7 is ideal. For Committed OKRs, 1.0 is expected. A team that consistently scores 1.0 on all OKRs isn’t setting goals ambitiously enough. A grade below 0.4 indicates unrealistic goal-setting or insufficient resources.