What is the difference between Objectives and Key Results and Key Performance Indicators?

by Jan 12, 2023

What is the difference between Objectives and Key Results and Key Performance Indicators?

OKRs and KPIs, two different beasts, but both are used to measure performance and progress in a company.

Let’s start with OKRs, short for Objectives and Key Results. It’s a way to set specific, measurable goals and track progress towards achieving them. Think of it like a map for your company, it helps everyone on the team know where they’re headed and what they need to do to get there.

KPIs, on the other hand, are Key Performance Indicators. These are specific metrics that help you measure progress towards your OKRs. Think of them as the GPS on your car, they tell you where you are and how far you have to go to reach your destination.

So, to put it in layman’s terms, OKRs are the destination, and KPIs are the speedometer. You need both to know where you’re going and how fast you’re getting there.

But, don’t get me wrong, these two aren’t interchangeable. They serve different purposes, but they work together in harmony to help a company reach its goals. Without OKRs, you won’t know where you’re headed, and without KPIs, you won’t know how far you’ve come. It’s like trying to drive a car without a steering wheel or gas pedal.

In summary, OKRs are the big picture goals, and KPIs are the specific metrics that help you measure progress towards those goals. Together, they give you a clear understanding of where you’re headed, how far you’ve come, and how fast you’re getting there.


    • OKRs:

      • “Measure What Matters” by John Doerr is a classic book that provides an in-depth look at OKRs and how they have been used to drive growth at companies like Google and Intel.
      • The OKR Academy (https://www.okracademy.com/) offers training and resources for organizations looking to implement OKRs.
      • OKR Software : Clearslide, 7Geese, BetterWorks, etc
    • KPIs:

      • “Key Performance Indicators: Developing, Implementing, and Using Winning KPIs” by David Parmenter is a comprehensive guide to KPIs that covers everything from choosing the right KPIs to measuring and tracking performance.
      • The KPI Institute (https://www.kpiinstitute.org/) provides research, education, and certification services for individuals and organizations looking to develop and use KPIs.
      • KPI software :Geckoboard, Klipfolio, etc

    These resources can provide you with a solid foundation and guidance to help you understand OKRs and KPIs and how to implement them in your organization.

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