Differences between OKRs and KPIs The OKR is a goal-setting framework. For each OKR, there is a goal to achieve, along with a set of metrics that will measure the achievement of that goal, called key results. KPIs determine the factors needed to achieve success in an organization. OKR is the acronym for objective and key results.
More specifically, an objective is linked to key outcomes. The OKR is a strategic framework, while KPIs are measures that exist within a framework. For example, if the website is down half the time and your goal is to “fix” your website, one of your key outcomes could include increasing or stabilizing your uptime. OKRs in companies are used to communicate desired results throughout the organization, focus attention on key areas for improvement, and deliver valuable results for the company.
Use OKRs to set objectives and improve the current state of the company and KPIs to monitor overall business performance. Rather, key performance indicators (KPIs) are metrics that measure progress toward an objective or goal. The simplest explanation of the difference between OKRs and KPIs is that OKRs express what your organization needs to achieve and how it will achieve it, and KPIs describe how you will measure success on the most important measures of your plan. Measurable, effort-based key results are not fit to be performance indicators because they are not explicitly quantifiable measures.
In the real world, there will be some gray areas: a shift in naming can turn a key result into a KPI (or vice versa). OKRs provide a framework for setting goals and measuring progress in terms of achieving them, while KPIs help identify areas for improvement by providing data-based information about what works and what doesn't. That area of improvement is measured by key results, which help you track the impact of the changes your team or company decided to make. So, if the OKR you set for this quarter didn't have the impact you expected on the company, you can analyze what worked and what didn't, and work out a better approach and a better OKR for the team for the next quarter.
Add KPIs and OKRs to Weekdone to manage, track, and evaluate company performance, improvement, and progress. The difference between OKRs and KPIs is that OKRs express what your organization needs to achieve and how it will achieve it, and KPIs describe how you will measure the most important measures of the OKRs in your plan. However, don't mark each key result as a KPI because it won't be clear what the essential measures you should observe and monitor are. The most important thing to remember in this regard is that the objectives are the results and the key results are the way to achieve that result.
The goal describes what you want to achieve, and the key results describe how you know you're making progress. Objectives and Key Results (OKRs) are objectives established by a company and that have any number of key results associated with the specific objective.
