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OKR's & performance incentive pay

Is anyone using OKR’s to measure performance when there are incentive plans tied to performance outcomes?

If so, how are you setting it up since incentive plans tend to have "the targets to be met " while OKR’s ask you to set key results where only “70% are attainable”.

We try to avoid setting incentives around OKRs. It sounds counterintuitive, but John Doerr’s excellent book “Measure what Matters” makes a great case against tying goals to pay.


Hi @Rach , I suggest you to not link OKR with incentive plans. OKRs are made to create a disrupt and a sense of owner of the business. Once linked with bonus or any incentive plan probably will be more difficult to estimulate this atmosphere. Hope be I was useful for you.

Agreed with not linking incentive plans to OKRs as OKRs are aspirational objectives (more often than not, not achieved at 100%). But, wanted to get your thoughts on cascading Department Goals and aligning them with the overall Organizational OKRs…has anyone taken this approach in their goal setting stage? You’d essentially have 2 buckets of goals - organizational (linked to OKRs) and personal/developmental (linked to job performance and merit).

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