OKR v/s KPI

OKRs stands for “Objectives and Key Results.” It is a collaborative goal-setting methodology used by teams and individuals to set challenging, ambitious goals with measurable results. OKRs are how you track progress, create alignment, and encourage engagement around measurable goals.

OKRs are typically written with an Objective at the top and 3 to 5 supporting Key Results below it. They can also be written as a statement:

I will (Objective) as measured by (Key Results).

For example, “I will fix the website for the vast majority of people as measured by 7 out of 10 people being able to get through, a 1 second response time, and a 1% error rate.”

An Objective is simply what is to be achieved, no more and no less. By definition, objectives are significant, concrete, action-oriented, and (ideally) inspirational. When properly designed and deployed, they’re a vaccine against fuzzy thinking and ineffective execution.

Key Results benchmark and monitor how we get to the Objective. Effective KRs are specific and time-bound and aggressive yet realistic. Most of all, they are measurable and verifiable. You either meet a key result’s requirements or you don’t; there is no gray area, no room for doubt. At the end of the designated period, typically a quarter, we do a regular check and grade the key results as fulfilled or not.

Where an Objective can be long-lived, rolled over for a year or longer, Key Results evolve as the work progresses. Once they are all completed, the Objective is achieved.