OKRs vs KPIs: What’s the Difference?
When comparing OKRs and KPIs, many forget a critical aspect — the relationships between them.
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When comparing OKRs and KPIs, many forget a critical aspect — the relationships between them.
A picture is worth a thousand words:
In short, the Key Results in the OKR always refer to quantitative metrics, some of which might be KPIs. Comparing KPIs to OKRs in the form of a table without explaining their relationship doesn’t make much sense.
Let’s dive into more details.
What are OKRs?
OKR stands for “Objectives and Key Results.” The two components:
- Objective (Why, What, When): A qualitative, inspirational, time-bound goal for a team to focus on. Typically set quarterly. It should be SMART.
- Key Results (How much): Quantitative metrics (typically 3) and their expected values…