OKR to Lead, KPI to Manage

OKRs and KPIs are both methods of performance management, but they can help you reach your goals in different ways. OKRs are a goal-setting framework, while KPIs track goal performance. OKRs and KPIs may look a bit like alphabet soup at first glance, but these acronyms are valuable ways to set and achieve goals. As a project manager, it’s important to set ambitious goals to keep everyone feeling challenged and motivated. Knowing how much progress you’re making toward those goals makes it easier to identify problems and celebrate wins.

What is an OKR?

Objectives and key results (OKRs) combine business goals with a set of measurable ways to achieve them. You can use OKRs for virtually any purpose, whether it be a?long-term career goal, a quarterly team goal, or a personal goal.?

When?setting OKRs, fill in the following sentence:

I will?[objective], as measured by?[key result].

Objectives are any goal you want to achieve, whether they’re easily attainable or far-reaching. An objective can include things like:?

• Improve our customer retention
• Increase our website conversion rate
• Gain qualified leads

Key results are the measurable ways you plan to achieve your goal, and you can have more than one key result for each objective. Unlike KPIs, key results don’t necessarily have to be quantitative. A key result can include things like:

• Implement a loyalty rewards program
• Add quality content to our website
• Upgrade our CRM software

The OKR framework is flexible, but company OKRs are more effective when they’re connected to the OKRs of other departments and team members.?34% of team members?said they’d feel more motivated at work if they understood how their work connected to the company's mission. You want motivated team members because they’ll work harder and reach goals faster.?

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What is a KPI?

Key performance indicators (KPIs) are quantitative?success metrics?that track business goals or projects. You can use KPIs to track projects, programs, or any other company initiative.

While KPIs have a range of uses, the metrics you choose for each KPI should be unique to the goal you’re working towards. For example, you shouldn’t use the same KPI to monitor the progress of a social media campaign and an IT project. Instead, make sure you’re researching relevant metrics for every initiative to ensure they measure relevant targets and connect to business goals.?

Choose KPIs that:

·??????? Tie to your?strategic goals

·??????? Can be measured against benchmarks

·??????? Inform?resource planning

·??????? Track something you can control and influence

Once you’ve set your KPIs, monitor them for the entirety of your initiative. This can help you understand if you’re on track towards your goals, at risk of completing them, or off track of where you want to be. Use?project management software?to track your KPIs and share them with?project stakeholders. By providing?real-time progress updates, everyone can follow the initiative’s progress—without having to sit through another endless status update meeting.??

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The difference between OKRs and KPIs

OKRs and KPIs are both methods of performance management, but they help you achieve your goals in different ways. OKRs are a goal-setting framework, while KPIs track goal performance.

You can set any goal using OKRs, but companies often use OKRs for bolder, more aggressive goals. Although OKRs represent big goals, they should be less ambitious than Big Hairy Audacious Goals (BHAG). While some OKRs last years, try to stick to a one-year maximum for most of your OKRs or they could grow bigger and hairier with time.

Companies use KPIs for more quantifiable goals. These metrics can be useful when:

·??????? Monitoring the health of your business

·??????? Analyzing patterns in growth over time

·??????? Measuring the progress of marketing campaigns

·??????? Addressing problems with underperforming projects

·??????? Identifying opportunities for improvement

·??????? Making adjustments to outdated initiatives?

·??????? Staying on track to reach future goals

Typically, you should start your goal setting process by?brainstorming?your goals and setting the “O” part of the OKR—in this case, a?business objective. Then, identify the actionable steps you need to take in order to achieve it. These steps are your key results. Once you’ve set a good OKR, assign KPIs to each of your OKRs to measure the progress toward reaching your objective.

OKRs and KPIs can work together, but they can also stand alone. For example, if your objective is to enhance customer satisfaction, then your key results may be to hire more customer service representatives and document customer reviews. These OKRs aren’t quantifiable and don’t require support from KPIs.?

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Use OKRs and KPIs to align your organization

OKRs and KPIs help you measure success and spark excitement for growth. These methods of performance management can also?motivate teams?and ensure everyone stays focused on what’s ahead.?

When you input your initiatives and performance metrics into your?work management software, team members will get a clear idea of how their work connects to the larger picture. This can ultimately reduce internal conflict and align the teams within your organization.?OKR suppose to use to leads where KPI to manage the organization or teams.

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