Objectives and key results (OKRs) and key performance indicators (KPIs) are goal-setting frameworks for measuring performance, productivity, and profitability. Businesses use OKR software or data visualization tools to visualize, track, and measure achievements against business goals.
OKRs help companies set, track, and modify measurable and time-bound organizational goals. KPIs are standalone, high-level performance metrics that summarize progress toward desired outcomes. Businesses use KPIs to measure progress and OKRs for direction and context.
OKRs and KPIs have many differences despite their complementary use.
What is the difference between OKR and KPI?
OKR is a strategic planning framework in which objectives define the what and key results explain the how. KPIs provide high-level quantifiable goals for evaluating the success of specific business activities.
Objectives in OKRs define the what by explicitly outlining ambitious goals achievable over a period. Each objective has corresponding outcome-based or effort-based key results to quantitatively measure progress. Key results are scored using normalization, which means values range between 0 and 1.
Businesses use OKRs for quarterly and annual goal setting. Andrew Grove introduced the OKR framework to Intel in the 1970s.
KPIs are quantifiable, outcome-based metrics that help evaluate performance and optimize resources for meeting strategic objectives. Businesses use KPIs to assess the success of programs, products, projects, and other initiatives.
The comparison table below shows how OKRs and KPIs differ in terms of purpose, characteristics, benefits, and limitations.
| OKRs | KPIs | |
| Definition | OKRs outline objectives and key results for tracking and updating measurable quarterly or annual goals. | KPIs are quantifiable, standalone performance metrics for measuring outcomes against high-level organizational objectives. |
| Purpose | OKRs help companies set, communicate, and monitor goals with strategic milestones. | KPIs aid organizations in reviewing and analyzing their performance against predefined strategic goals. |
| Nature | OKRs are dynamic; they can change based on previous results or future goals. | KPIs remain steady and provide businesses with steady benchmarks for evaluating performance. |
| Duration | Organizations usually set OKRs quarterly or yearly. | KPIs might stay the same for months or years or change more frequently, depending on organizational goals. |
| Characteristics | OKRs represent quantifiable, ambitious goals achievable within a timeline. These goals are scored on a 0-1 scale. | KPIs connect strategic objectives so companies can measure them against targets and redirect resources when necessary. |
| Types | Committed, aspirational, and learning; businesses set these OKRs at individual, cross-functional, departmental, or company levels. | Strategic, operational, functional, quantitative, qualitative, leading, and lagging. These seven types depend on an organization’s vision. |
| Examples |
Below are some key results for an organization trying to improve its sales pipeline by 30% this quarter:
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Below is the KPI for the same organizational goal on the left:
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| Benefits |
OKRs help employees align with goals, give clear direction about achieving them, and track progress. |
KPIs improve organizational transparency, accountability, and decision-making based on real-time data. |
| Limitations |
OKRs overemphasize quantitative goals and may cause a lack of alignment when designed from the bottom up. |
KPIs require a longer timeline to provide meaningful data, which is why many companies use them in tandem with OKRs to evaluate performance. |
| Ideal for |
OKRs suit dynamic business environments that require flexibility and adaptability. |
KPIs are best for setting benchmarks, creating targets, and tracking the progress of fundamental procedures. |
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Sudipto Paul
Sudipto Paul is a Sr. Content Marketing Specialist at G2. With over five years of experience in SaaS content marketing, he creates helpful content that sparks conversations and drives actions. At G2, he writes in-depth IT infrastructure articles on topics like application server, data center management, hyperconverged infrastructure, and vector database. Sudipto received his MBA from Liverpool John Moores University. Connect with him on LinkedIn.
