Top-Down or Bottom-Up: What’s the Right Way to Set OKRs?

When introducing OKRs (Objectives and Key Results) into your organization, one of the most debated questions is:

Should OKRs be set from the top down — or the bottom up?

There’s no one-size-fits-all answer. But understanding how each approach works — and how to combine them — is key to a successful OKR rollout.

What Does “Top-Down” Mean in OKRs?

In a top-down OKR approach, leadership sets the high-level company or department OKRs first. These then serve as a guide for teams and individuals to align their own goals.

This method is:

• Clear and efficient: It gives everyone a strong direction.
• Strategic: Ensures alignment with company priorities.
• Structured: Reduces misalignment across teams.

However, if done in isolation, it can also feel like a command-and-control model — which may reduce buy-in and motivation at the team level.

What About “Bottom-Up” OKRs?

In a bottom-up approach, teams (and sometimes individuals) set their OKRs first, often based on what they see as valuable or feasible from the ground up.

Benefits include:

• Higher ownership: Teams feel invested in what they’ve created.
• More context: People closest to the work often know best what’s needed.
• Greater innovation: New ideas surface more easily.

But it can also create fragmentation if team goals don’t ladder up to a bigger strategic picture.

The Best Practice: A Hybrid Approach

The most effective OKR rollouts combine top-down clarity with bottom-up engagement.

Here’s how that might look:

1. Start with company-level OKRs
   Leadership defines 3–5 core Objectives that set the tone and direction.
2. Invite teams to respond
   Teams then create their own OKRs that align with the company goals — adding nuance, tactical detail, and new ideas.
3. Review and align
   A brief calibration phase ensures everyone is pulling in the same direction, while still allowing for autonomy.

This hybrid model maintains strategic focus while empowering teams to take ownership.

What If You’re Just Getting Started?

If your organization is new to OKRs, start with a light version of top-down:

• Set 1–2 company-wide Objectives as a foundation.
• Ask teams to create 1–2 of their own that support them.
• Encourage managers to coach and review — not control — the process.

This reduces friction and helps everyone learn by doing.

Common Pitfalls to Avoid

• Too rigid top-down OKRs kill team ownership.
• No alignment from the top leads to scattered efforts.
• Lack of communication during the goal-setting process causes confusion or frustration.

The key is to keep communication flowing and ensure every level of the organization understands how their OKRs support the bigger picture.

Final Thoughts: Direction First, Then Ownership

OKRs thrive when there’s both clarity of direction and engagement in execution.

So don’t pick between top-down or bottom-up. Use both.
Start with a north star, then let your teams help you reach it.

Ready to Roll Out OKRs Without the Chaos?

We help fast-growing teams introduce OKRs with a system that sticks.‍

Book a free strategy session to get tailored advice on how to align leadership and teams — without top-down micromanagement.

‍