OKRs or KPIs?

What’s the Difference and Which Do You Need?

When it comes to tracking and achieving business goals, OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators) are two great tools—but they serve very different purposes. Here’s a quick breakdown to help you decide when to use each.

OKRs: Driving Big, Bold Change

OKRs focus on ambitious, future-focused goals. They answer: “Where do we want to go, and how will we get there?” Think "SMART goals" here.

• Objective: A qualitative, inspiring goal (e.g., “Become the top IT provider in our region”).
• Key Results: Measurable milestones to track progress (e.g., “Increase revenue by 25% this year”).

OKRs are perfect for tackling transformative initiatives like market expansion or launching new products. They push your team to stretch beyond their comfort zones.

KPIs: Tracking Business Health

KPIs monitor current performance and ensure your business stays on track. They answer: “How are we performing?” Think "weekly scorecard" here.

Examples include customer retention rate, revenue, or client satisfaction scores. KPIs are ongoing and help maintain the stability of your business operations.

Key Differences:

1. Purpose:
2. Focus:
3. Mindset:

Using Both Together

OKRs and KPIs work best in tandem. For example, set OKRs to drive growth (e.g., expanding your client base by 20%) while using KPIs to ensure quality (e.g., tracking client satisfaction). Together, they balance innovation with operational stability.

What’s Right for You?

Use OKRs to drive change and KPIs to sustain excellence. A healthy business needs both to stay focused, aligned, and thriving.