Able to be objectively scored on a 0-1 or 0-100 scale, Ambitious (if you easily achieve your objective, it wasn’t aggressive enough). KPI stands for Key Performance Indicator. OKR is a goal-setting tool that sees organizational objectives as inspirational goals that the company wants to achieve with measurable results, whereas KPIs are health metrics that help measure the success of your ongoing activities, processes, projects, etc. Simply put, the KPIs define the “what” while OKRs define the “what”, “how”, and “when”. When creating your KPIs, don’t be vague. Business is widely affected by various factors and statistically, a change in 'A' affects 'B' thus becoming a continuous process that needs tracking. OKR is the acronym for objective and key results—more specifically, an objective is tied to key results. It’s important to note that, unless you have a very small company, your KPIs can and should be broken down by department (and by industry if you are a conglomerate). For each OKR, there is an objective to be achieved, along with a set of metrics that will measure the achievement of that objective, called key results. Now that you know the difference between these two concepts, you can choose the right approach for goal achievement in your organization. While there can be a little overlap between the two, they are quite different methodologies with different goals altogether. They represent the intended output of a process, project, or initiative, … That is probably the reason why we so often hear our customers at Weekdone say that they are switching from KPIs to OKRs. OKR is a simplistic, black-and-white approach that uses specific metrics to track the achievement of a goal. OKRs, on the other hand, are not a tracking system but a goal-setting tool that sees organizational objectives as inspirational goals that the company wants to achieve with measurable results. For example, if you’re an YouTuber, some of the key metrics driving your progress or performance level are the number of subscribers, the amount of revenue you generate, the number of views per post, or the number of minutes per post. The challenge is that “KPI” can mean different things for different people, which is confusing. KPIs are to monitor and keep an eye on things. At the strategic level, you only want to track and measure the indicators that have the biggest impact and value for your company. KPI is a metric with a target; OKR is a goal-setting framework that has multiple metrics (key results). If you opt to change an entire OKR stack next quarter, think about how you might roll your KPIs into a new or adapted OKR stack. You don’t want to make every metric a KPI, because if … A lot of people think that OKR (Objectives and Key Results) and KPI (Key Performance Indicators) are interchangeable: three-letter abbreviations, both have the word “Key” in them, so they must be the same. OKRs are the overall goal you wish to attain, while KPIs are measuring the process of the pathway used to reach said goal. In the first OKR example above, a key result was to “Increase staff by 45 percent.” Counting the number of employees could also be a KPI. Evaluate performance at your company with any of these 68 financial KPIs. In other words, KPIs are related to observations about the processes of projects under construction, while OKRs include tactics for new breakthroughs and developments. KPIs are an indicator of performance that help you keep track of your work through a measurement system. Creating good KPIs requires serious effort and time, and involves a lot of systematic steps. KPIs seem to have been used by almost very organization in the planet. Very often, a KPI that needs improvement will be a starting point for creating an OKR, and it will become a Key Result of an Objective. If you want your company to be an industry leader, then the objective of KPIs maybe to increase revenue by at least 10 percent. So the OKR is the lofty goal your company dreams up, and the KPI presents you with the reality – how successful you are at achieving those ambitious goals. One of the key differences between OKRs and KPIs is the intention behind the goal setting. fund raising, and in internal meetings. Here are some common KPI examples for a variety of industries and divisions: OKRs are built on big-picture goals and targets that are designed to push employees and companies forward, so they should toe the line of “almost impossible.” The OKR framework is a continual cycle of fast, dynamic growth. 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