OKR
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Acronym #
OKRs (Objectives and Key Results) is a goal-setting framework that helps individuals and teams focus on the most important things, align their efforts, and track progress towards achieving their objectives.
Set goals (OKR), measure progress towards these goals (KPI)
OKR vs KPI #
| Item | OKR | KPIs |
|---|---|---|
| Goals with metrics attached | Yes | Yes |
| Standalone metrics | No | Yes |
| Setting | Set an entirely new goal | Set only signals |
| Identifying Success | Identify the signals of success | Used to measure |
| Use | Used to lead and measure | Used to measure |
| Measured | Often set and measured quarterly | Measured on a continuous basis |
OKR vs. KPI: Which one to choose? #
Still scratching your head wondering which way to go? Take comfort in the fact that there isn’t one “right” answer. When evaluating whether to use OKRs vs. KPIs, it’s really up to you and what you’re looking to measure.
For example, if you’re looking to scale or improve upon a plan or project that’s been done before, KPIs might be the better option. They’re straightforward and allow you to add a measurement system to your ongoing projects and processes.
However, if you have a larger vision or are looking to change your overall direction, OKRs might be the better choice. They have a greater depth that will allow you to stretch your goals even further and be a bit more creative in how you plan to reach them.
Can OKRs and KPIs work together? #
If you’re still feeling stuck on whether to choose an OKR or a KPI, use them both. OKRs and KPIs not only can work together, but are most powerful and impactful when used in combination with each other.
Your KPIs measure overall performance, which means they’re a relevant and data-backed starting point for setting your OKRs. For example, perhaps your organization set a KPI of maintaining an employee turnover rate under 15% for the next year.
But when you do your monthly reporting and check in on that KPI, you realize that you’re currently hovering at about 23% turnover. You have some work to do, and setting some OKRs for the company and even at the individual and team level can help you get that back on track.
Example #
To provide just a quick example, the human resources team might set a related OKR that looks like this:
Objective: Improve employee engagement scores by 20% on next engagement survey Key Result 1: Launch new employee intranet to inform and connect onsite, remote, and hybrid workers Key Result 2: Roll out career paths so all employees see clear paths for advancement Key Result 3: Provide targeted training to managers on pertinent topics like autonomy, wellbeing, and career development See how that objective and those key results connect to the broader KPI? The OKR is focused on engaging employees, which will likely reduce turnover and improve your KPI performance.
Put simply, you can use your KPIs to monitor and highlight potential areas of growth and improvement and then set your OKRs to support development in that area. Doing so helps you set KPIs and OKRs that support each other, rather than confuse or compete against each other.