OKRs Vs. KPIs: Breaking Down the Types and Differences

OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators) are both crucial methods for assessing and achieving business objectives, but they have different roles. KPIs are used to evaluate particular areas of performance and track progress over time, while OKRs are used to set difficult, measurable goals and track progress toward reaching them.

We use KPIs to track the day-to-day performance, while OKRs are implemented to set and measure long-term strategic objectives. By combining OKRs with KPIs, a company can gain a comprehensive sense of its performance and make sure that all of its operations are working toward reaching its overall goals.

What is OKR?

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A framework for setting goals called OKRs (Objectives and Key Results) helps a company’s strategy and day-to-day operations coordinate. The company implements it at several levels, including corporate, departmental, and individual. We commonly set OKRs quarterly and evaluate and change them as needed.

Defining OKRs (Objectives and Key Results) is an important step in ensuring that the goals set are specific, measurable, and aligned with the company’s overall strategy. A clear, specific, and ambitious goal that is in line with the organization’s strategy and vision is chosen. Measurable key results are set, a time frame is established, the goal is assigned to an individual/team, and OKRs are regularly reviewed and updated.

Ultimately, they are shared with the appropriate stakeholders to empower alignment and engagement. They are broadly applied throughout a wide range of industries including technology, HR, banking, manufacturing, retail, healthcare, and more.

OKR types

There are several types of OKRs:

  • Corporate OKRs: Overall goals and significant outcomes for the entire company.
  • Team OKRs: Objectives and major results for several teams or departments inside the company.
  • Personal OKRs: Goals and important outcomes for every employee.
  • Initiative OKRs: Goals and important outcomes for a particular project or initiative.
  • Functional OKRs: Goals and key outcomes that are exclusive to a specific department of the company.

What is a KPI?

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A KPI (Key Performance Indicator) is an exact, definable value that is utilized to monitor progression toward a given set of goals. They are used to evaluate and analyze an organization’s, business unit’s, or single person’s performance. KPIs can be deployed across the company, in departments, and at the individual, team, and individual levels.

The process of defining KPIs (Key Performance Indicators) requires determining exact, measurable values that fit the objectives and goals of the company. Setting goals, choosing metrics, determining targets, setting deadlines, assigning ownership, monitoring progress, and analyzing data to make decisions are all part of the KPI process.

KPI types

There are several types of KPIs, including:

  • Input KPIs: Measuring the resources and inputs that are required to achieve a goal or objective.
  • Leading KPIs: Evaluating the performance in areas considered to be leading indicators of future success.
  • Process KPIs: Assessing the efficiency and effectiveness of internal processes.
  • Output KPIs: Evaluating the results or outcomes that are produced by a process or activity.
  • Strategic KPIs: These are relevant to the company’s strategy and measure progress toward strategic objectives.

Key differences 

We use both of these to measure performance and track progress toward specific goals, but there are key differences between them.

  • Purpose: While KPIs are used to analyze performance in specific business areas, OKRs are used to define and monitor goals at the organizational, team, and individual levels.
  • Timespan:¬†We use KPIs to track ongoing performance, and OKRs are often set for a specified time frame, such as a quarter or a year.
  • Format: An OKR often has a clear objective, and a list of definable key results, and follows a specific framework. KPIs are frequently a single metric, or a collection of statistics, that assesses a certain performance factor.


In summary, KPIs and OKRs are both crucial instruments for reaching business objectives. KPIs assess particular performance and monitor progress, while OKRs set bold, measurable goals.

Together, they offer a thorough assessment of a business’s performance and support ensuring that all processes are in line with the overall goals. To keep them relevant to the objectives of the company, regular reviews and changes are crucial.

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