This is one of the most asked questions about KPIs and OKRs.
OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators) are both great tools for keeping track of goals and performance. but they serve different purposes. OKRs are all about setting big, inspiring goals and then breaking them down into measurable steps to see how close you’re getting to achieving them. Think of an OKR as having a motivational goal (the Objective) and then specific targets (the Key Results) that show your progress. These are often used to push boundaries and encourage innovation. They’re usually set quarterly or annually and can be tweaked along the way to keep up with any changes or new insights.
What is good about KPIs
KPIs, on the other hand, are more about keeping an eye on the day-to-day performance. They are concrete metrics that tell you how well certain aspects of your business are performing. KPIs are often realistic and achievable, designed to help maintain consistent performance levels. They’re tracked continuously, like monthly or weekly, to provide a clear, ongoing picture of how things are going.
Can we use both?
In essence, OKRs are used to drive big changes and improvements with ambitious goals, while KPIs are used to monitor and maintain steady, reliable performance. OKRs might help you aim for the stars, setting bold goals and encouraging innovation, whereas KPIs are like the vital signs that keep your business healthy and running smoothly. Both are essential, and when used together, they can really complement each other and help an organization succeed.
Let see which one is more suitable for you. ❤️
Here’s a breakdown of their differences in table
