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How to Run Performance Reviews Using OKRs (Free Template)

Stop running subjective performance reviews. This step-by-step guide shows how to use OKRs to drive clearer, fairer reviews.

Steven Macdonald
5 Mins read
January 22, 2026
How to Run Performance Reviews Using OKRs (Free Template)

Most performance reviews fail quietly.

No one storms out. No one argues. Everyone nods. The meeting ends on time. And yet, nothing meaningfully changes the next quarter.

The reason is simple:

Performance reviews are usually disconnected from execution.

OKRs live in one world - weekly check-ins, delivery pressure, tradeoffs. Reviews live in another - vague feedback, memory-based judgments, and general impressions. By the time the review happens, the signal is weak and the conversation drifts.

This guide shows how managers can run performance reviews using OKRs as the backbone, without introducing HR complexity, scoring systems, or bureaucracy - and why that difference matters more than most teams realize.

Running performance reviews after an OKR cycle?

This guide helps managers anchor reviews in real delivery — so conversations focus on outcomes, tradeoffs, and what changes next quarter. Get the Performance Review Prep Kit →

Why OKRs Are a Better Anchor Than “Performance”

Traditional reviews start with questions like:

  • “How did this person perform?”

  • “Are they meeting expectations?”

  • “What are their strengths and weaknesses?”

Those questions sound reasonable - but they invite opinion.

OKRs narrow the discussion in a useful way:

  • What outcomes did we commit to?

  • Which ones moved?

  • Which didn’t - and why?

  • What tradeoffs did we make under pressure?

When reviews are anchored to OKRs, performance stops being abstract. It becomes observable.

This doesn’t make reviews harsher. It makes them fairer - especially in fast-moving teams where priorities shift and effort doesn’t always equal impact.

Performance reviews in OKRs Tool

When to Run OKR-Based Performance Reviews

Timing determines whether a review feels useful or performative.

The most effective OKR-based reviews happen immediately after an OKR cycle ends, while context is still fresh and before the next cycle is locked in.

A simple cadence works best:

This order matters. Reviews should shape what happens next - not document what already happened.

Who Should Be Involved (and Who Shouldn’t)

The fastest way to ruin a performance review is to involve too many people.

For execution-focused teams, clarity beats inclusiveness.

What works

  • One employee

  • One manager

  • One shared outcome

What usually creates noise

  • Peer reviews

  • Anonymous feedback

  • Calibration panels

  • HR intermediaries

At this stage, performance reviews aren’t about ranking people. They’re about aligning on reality and focus. Anything that diffuses ownership weakens that outcome.

How to Structure the Review Conversation

OKR-based reviews work best when the structure is consistent and predictable - not when every review feels improvised.

Start With Self-Reflection

The employee reflects first, before seeing the manager’s perspective.

Good prompts focus on execution, not self-judgment:

  • What went well this cycle?

  • What didn’t go as planned?

  • Where did you feel blocked or unclear?

  • Which outcomes best represent your work?

  • What would you approach differently next cycle?

This surfaces context the manager may not have: hidden constraints, tradeoffs, or dependencies that don’t show up in dashboards.

Then Add Manager Perspective

The manager’s role isn’t to grade - it’s to interpret.

Strong manager feedback focuses on patterns:

  • Where was delivery strong?

  • Where did execution fall short?

  • Which outcomes mattered most?

  • What should change next cycle?

Ratings can exist, but they should never drive the conversation. If the narrative isn’t clear without a number, the number won’t help.

Performance review template in OKRs Tool

What Good OKR-Based Feedback Sounds Like (and What Bad Feedback Sounds Like)

This is where OKR-based reviews diverge sharply from traditional ones.

Feedback that goes nowhere

  • “You need to be more proactive.”

  • “Communication could improve.”

  • “Overall, solid performance.”

(Nodding your head to the above? I feel you. Most of my performance reviews have been similar).

Feedback grounded in execution

  • “This KR slipped because dependencies weren’t escalated early.”

  • “This objective mattered more than expected; the others became noise.”

  • “The outcome didn’t move, even though effort was high - let’s unpack why.”

The difference isn’t tone - it’s specificity. OKRs give both sides a shared reference point, which reduces defensiveness and ambiguity.

The 5 Most Common Ways Managers Ruin OKR-Based Reviews

Even with the right structure, reviews fail in predictable ways.

  1. They talk about effort instead of outcomes
    Hard work matters - but outcomes are the signal.

  2. They avoid missed bets
    Missed Key Results are information, not accusations.

  3. They turn feedback into personality judgments
    Execution problems become “you problems” instead of system or priority problems.

  4. They treat the review as a verdict
    Reviews should clarify the future, not close the past.

  5. They end the review without changing anything
    If nothing shifts next cycle, the review didn’t work.

Most of these failures come from discomfort - not bad intent.

How to Close the Review So It Actually Matters

A performance review should end with clarity, not consensus.

Before the conversation ends, both sides should be aligned on:

  • The 2–3 takeaways that matter most

  • What should change next cycle

  • What should stay the same

This doesn’t require a long document. A short written summary is enough - as long as it captures reality and focus. If the review doesn’t influence priorities, behavior, or OKRs in the next cycle, it’s just documentation.

How Performance Reviews Differ When Combined With OKRs

The difference between reviews that feel subjective and reviews that improve execution usually comes down to what they’re anchored to. The contrast below shows how performance reviews change when they’re run through the lens of OKRs.

Traditional Performance Reviews OKR-Based Performance Reviews
Scheduled independently of execution cycles Run immediately after an OKR cycle ends
Rely on memory, impressions, and general feedback Grounded in specific objectives and outcomes
Focus on traits, effort, or vague expectations Focus on delivery, tradeoffs, and execution decisions
Often feel subjective or inconsistent Feel concrete, fair, and easier to discuss
End with broad encouragement or generic goals End with clear priorities for the next cycle
Exist as a standalone HR process Act as a reflection point inside the execution rhythm


This shift is subtle, but it’s what turns performance reviews from a retrospective conversation into a forward-looking decision point. When reviews reflect real execution, they naturally shape what happens next.

The Real Test of a Performance Review

A week after the review, ask one question:

Did this conversation change how the next quarter will run?

If the answer is no - even if the review felt positive - it failed.

OKRs make performance reviews uncomfortable in the right way. They surface tradeoffs, missed bets, and priorities that didn’t hold under pressure. That discomfort is the point.

When reviews reflect real execution, they stop being a ritual and start becoming a control mechanism. That’s when performance reviews finally earn their time on the calendar.

Turn OKRs Into Performance Reviews That Actually Change What Happens Next

If performance reviews are meant to reflect execution, they need more than good intentions. This kit gives managers a clear way to run focused, OKR-based review conversations that shape the next cycle — not just summarize the last one.

  • Self- and manager-review prompts grounded in OKR outcomes
  • A review timeline that fits naturally into the OKR cadence
  • Guidance for turning execution insights into next-cycle priorities
  • Designed for manager-led reviews — not HR programs or scoring systems
Get the Free Performance Review Kit
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Founder

Steven Macdonald│LinkedInX

Steven is the founder of OKRs Tool and has helped 1,000+ startup and scale-up teams start their OKR journey through the platform. With 4+ years of experience in OKR management, he built OKRs Tool to make setting objectives, tracking progress, and staying aligned simple for small teams.