Driving Progress with Purpose: KPIs, OKRs, and the Bigger Picture

Tracking metrics is important, but numbers alone won’t change your business. Metrics like employee satisfaction scores or turnover rates can show you where things stand, but they don’t tell you what to do next—or even why you're tracking them in the first place. To make a real impact, you need to connect what you’re measuring to meaningful actions and purpose.

Think of it this way: one is evaluation, and the other is transformation.

Instead of asking, “Did we hit the target?” ask, “What are we trying to achieve and why, and how can we use this data to get there?”

Breaking It Down: KPIs and OKRs

? KPIs (Key Performance Indicators): These are the numbers that show how things are going. For example, you might track retention rates, satisfaction scores, or how many employees completed training. KPIs are great for monitoring progress but don’t always tell you how to improve.

? OKRs (Objectives and Key Results): These help you take action by tying those numbers to clear goals. OKRs don’t just measure—they focus on what’s possible, like improving retention or boosting satisfaction.

How KPIs and OKRs Work Together

You don’t have to choose between KPIs and OKRs—they’re better together. KPIs tell you where you are today. OKRs help you decide what to do next.

Take employee satisfaction as an example:

? A KPI like eNPS (Employee Net Promoter Score) measures how likely employees are to recommend your workplace. It tells you what’s happening but not what to do about it.

? An OKR takes that data and creates a plan for improvement.

For example:

? Objective: Make the workplace more engaging and satisfying.

? Key Results:

1. Improve eNPS from 10 to 20.

2. Increase survey participation from 70% to 80%.

3. Implement three changes based on employee feedback by year-end.

By pairing KPIs with OKRs, you’re not just tracking satisfaction—you’re taking steps to improve it.

Why Asking “Why” Is Key —Purpose

Sometimes the numbers don’t tell the full story. Asking “why” a few times can help you get to the heart of what you’re measuring.

Let’s take eNPS as an example:

1. Why are we tracking eNPS?

To understand how satisfied employees are and how likely they are to recommend working here.

2. Why does that matter?

Because it reflects their overall satisfaction and connection to the company.

3. Why does engagement matter?

Engaged employees are more motivated, productive, and less likely to leave.

4. Why does that help?

It creates a positive culture where people want to stay and grow.

5. Why is that important?

High retention saves money, builds team stability, and improves performance.

By asking “why,” you can move from simply tracking numbers to making meaningful changes.

Leading vs. Lagging Indicators

To make a real impact, it helps to understand the difference between leading and lagging indicators:

? Lagging Indicators: These measure what’s already happened, like turnover rates or satisfaction scores. They’re useful for looking back but can’t help you adjust in real time.

? Leading Indicators: These track actions that influence future results, like participation in training programs or stay interviews. They let you make changes before outcomes are final.

Here’s how we can clearly show the connection between the objective, leading indicators, and Key Results:

? OKR Objective: Create a workplace where employees feel supported and engaged.

? Key Results:

1. Increase participation in professional development programs from 50% to 75% by offering targeted learning paths and tracking completion rates.

2. Conduct stay interviews with 80% of employees to identify and address engagement drivers.

3. Reduce turnover rate by 10% in 12 months by implementing retention-focused initiatives based on employee feedback.

? Lagging KPIs: Turnover rate. Employee satisfaction score.

? Leading KPIs:

1. Participation in professional development programs (shows organizational support for growth).

2. Frequency of meaningful 1:1 conversations between managers and employees (ensures personal connection and support).

Together, leading and lagging indicators help you measure both what’s happened and how to create positive change. By linking KPIs to OKRs, you can use metrics to build a more engaged and resilient workforce.

What’s the Takeaway?

Metrics like KPIs are valuable—they show where you stand. But to make an impact, you need to tie them to actions that drive progress.

Next time you’re analyzing metrics, ask yourself: Are we just tracking data, or are we using it to create change? By combining KPIs with OKRs, you’re not just measuring performance—you’re driving results that matter.

#Leadership #KPIs #OKRs #EmployeeExperience #BusinessGoals