OKRs vs KPIs

Use a blend of OKRs and KPIs to achieve your business outcomes faster, better and more

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What is an OKR?

Objectives and Key results (OKR) is a goal management system used by teams, large and small, to collaborate and achieve stretch goals through a framework that requires regular check-ins, feedback, continuous learning, collaboration and problem-solving.

  • Objectives are qualitative and inspirational, time-bound goals
  • Key Results quantify the objectives and break it down to specific metrics that can be used to measure the achievement of the Objectives

What is a KPI?

Key Performance Indicators (KPIs) are the critical (Key) Indicators of progress toward an intended objective, measuring an aspect of the objective of the business. KPIs quantify the objectives and break it down to specific metrics that can be used to measure the achievement of the Objectives.

KPIs are encouraged to be used within the OKR framework to set growth goals and achieve more with alignment and execution.

OKR vs KPI

When it comes to managing your business though, having great KPIs identified by itself is not enough. OKRs may be new, but every business has a plan and a budget for every year. These plans and corresponding budgets are typically based on projections of KPIs, based on what you did in the past and what you target to or expect to achieve this year. This is where OKRs come into play. It is a lot easier to use the travel analog

OKR-vs-KPI Difference

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A Travel Analog

Goal: To reach a destination

OKR: Trip Plan

KPI: Speed, Fuel level, Engine Heat

Imagine you are driving to some place and the final objective is your destination, your OKR is the trip planned and your KPI is the dashboard. OKR is the trip plan and KPIs are the metrics that you see on your dashboard (Speed, Fuel level) telling you how fast you’re going, how much fuel you need, and what you need to check in on at your next pit stop. But there are other things that you care about, which are not in any dashboards.

OKRs and KPIs help you to achieve the same objective – but they perform different functions.

OKR-vs-KPI-Travel-Analog

OKR Examples

To help you easily understand and create OKRs on your own, we have showcased a few OKR examples here. OKRs can defined for various levels- The first one is an example of a corporate level OKR and the next one is at the Department level (in this case for sales Department)

  • Improve Brand Engagement

    51%

  • Increase number of visitors from 20K to 60K

    20K 60K 34K

    27%


  • Increase number of Customer success stories from 0 to 5

    0 5 4

    27%


  • Ensure Brand Consistency

    0% 100% 40%

    20 40 60 80

    27%

  • Increase Annual Recurring Revenue

    45%


  • Increase Account renewals from 75% to 90%

    75% 90% 85%

    85%


  • Increase Lead Conversion from 20% to 40%

    20% 40% 30%

    85%


  • Revamp Customer Acquisition Process

    0% 100% 25%

    25 50 75

    27%

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