Both OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators) measure performance, but they serve different purposes.
KPIs are like vital signs for your business. 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 into performance. I see two types:
→ You use KPIs to make data-driven decisions.
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 on a weekly basis.
Every team should apply them at least in principle. The framework can differ, but understanding these concepts helps you choose the right method.