OKR is a strategic framework, whereas KPIs are measurements that exist within a framework.
Now let’s define these terms. KPI stands for key performance indicators. In addition, OKR is an objective and key result. It has never been easy to compare OKRs and KPIs since they are both a part of the same method, and these two somehow fit together. KPIs, on the other hand, focus more on measuring success than on setting goals. In contrast, an OKR system sets targets and leads teams to measure progress.
KPIs should be measurable. When you add quantitative value makes it easier to analyze performance. On the other hand, OKRs inspire you to set ambitious objectives and break those down into key results. The most effective OKRs should be achievable, memorable, and inspiring.
So, they are both management tools that are designed to set goals and make the process measurable, but they do it in different ways.
KPIs are focused on the result, whereas OKRs are monitoring the process.
OKRs speak about the vision, about what the company is trying to achieve, whereas KPIs intend to scale or improve a certain project.
The secret to OKRs and KPIs is that they are complementary, not competing.
OKRs inspire you to set ambitious goals and break them down into key results. And KPIs provide a way to monitor performance and measure success.
So the trip to these metrics is as follows:
“Strategy, OKRs, and KPIs”
The strategy for deciding your destination. OKR to help you track if you are on the right path, and course-correct if needed. KPIs let you know if everything else is on track.
If your KPIs and OKRs sound similar, that is ok. Just remember that one’s an outcome and the other a measurement. Combining both of them and the strategy sounds like a winning combination to me.