An Objective is a qualitative, inspiring goal that describes what should be achieved without citing numbers. It sets direction and creates focus for a team or organization. Measurement does not happen within the Objective itself but through the associated Key Results. The Objective serves a different function: it motivates and orients, while the Key Results quantify progress.
Good Objectives start with a verb and describe a desirable state. “Build the best onboarding experience in the industry” is an effective Objective because it is clear, motivating, and gives the team room to determine how to get there. “Ten percent more users” is a Key Result, not an Objective, because it states a number but provides no direction. In practice, the wording is often the hardest part. An Objective must be ambitious enough to motivate yet concrete enough to guide action. Teams that formulate too vaguely lose focus. Teams that formulate too specifically restrict their solution space.
The concept goes back to Andy Grove at Intel. A maximum of three to five Objectives should be set per quarter, because more goals do not create more focus — they create less.