Why Google Dropped OKR for the New GRAD Performance System

Google Replaces OKR with the New GRAD System

Google announced a comprehensive overhaul of its performance‑evaluation process, eliminating the twice‑yearly reviews in favor of a single annual assessment called GRAD (Google Reviews and Development). The change is intended to reduce administrative burden and shift the focus toward employees' actual impact.

From OKR to GRAD

OKR (Objectives and Key Results) was introduced to Google less than a year after its founding and has since become a textbook example of goal‑setting, adopted by many tech giants. Over time, however, OKR has been criticized as another form of internal competition that can become an "involution" tool.

The new GRAD system emphasizes employee influence, categorizing impact levels such as "Scarce," "Outstanding," and "Transformational." Employees will still maintain regular communication with managers throughout the year, but formal ratings will occur only once.

Why the Shift?

Internal surveys revealed that 47% of Google staff considered the previous evaluation process a waste of time. Historically, performance reviews required thousands of hours from managers, especially when the workforce grew to over 163,000 employees. By simplifying the process, Google hopes to let engineers focus more on product work rather than constant self‑promotion.

Google also faces heightened competition for talent amid inflation and new office‑attendance policies, with rivals like Amazon, Apple, Meta, and Microsoft intensifying the hiring battle. Employee compensation concerns have risen, prompting leadership to rethink the link between reviews, promotions, and pay.

Implementation Details

Under GRAD, employees and managers will set shared expectations, receive continuous feedback, and undergo a single performance rating each year. The system also retains bi‑annual promotion cycles and aims to reflect the real‑world impact of employees' daily work.

Reference links: https://www.theverge.com/2022/5/5/23058790/google-employee-performance-review-changes-ratings-pay https://buildyourfuture.withgoogle.com/resources/grad/