Both OKRs and KPIs measure performance, but they serve different purposes.
KPIs track business health. They're like vital signs. Just as a doctor checks pulse and temperature, you track revenue growth, profit, or customer retention. KPIs don't tell you what to do. They provide insights. Some measure progress toward goals, others track non-negotiables that keep the business stable. You use KPIs to make data-driven decisions.
OKRs drive change. If KPIs are vital signs, OKRs are the treatment plan. They define how you'll improve key areas. KPIs tell you where to focus. OKRs outline the plan to move the needle. You use OKRs to prioritize day-to-day actions.
Every team should apply both, at least in principle. The framework can differ, but understanding the difference helps you choose the right method.