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Writer's pictureNabeel Ansar

The difference between OKRs and KPIs

KPI stands for Key Performance Indicators and are used to track business metrics that reflect performance. OKRs, on the other hand, are a methodology for defining improvement areas and driving changes or new initiatives.

KPIs don’t tell you what needs to be changed or improved to drive the growth of your business metrics.

OKRs help you clearly see how your business metrics relate to your daily work.


Here’s how KPIs and OKRs differ, and how your team can use them both:

​KPIs

OKRs

Business Metrics that reflects the performance

Goal-setting method that improves

performance and drives changes

Used for business and performance measurement and management

For alignment, engagement and

focus

The level of performance that business want to achieve

A specific area of improvement to

focus on

Not changeable on regular basis

Frequently set, adaptive, tracked

and re-evaluated

Monitors the current state and provide the benchmark

Informs everyone on what's important

to achieve company goals

Examples of Product OKRs


  • Obj. Find a product-market fit for the Ideal Customer Profile (ICP)

    • KR: Get internal feedback score of 10/10 from the sales team5score

    • KR: Get usability score above 8/10 on UX mockups from 15 existing customers


  • Obj. Activate user-testing of our product

    • KR: Conduct at least 21 face-to-face user testing & interview sessions

    • KR: Receive at least 15 video interviews from Usertesting.com

    • KR: Collect 20 customer feedback responses via custom tasks or questions during the pre-launch plan


  • Obj. Delight customers with extraordinary support.

    • KR: Critical issues resolved within 1 hour

    • KR: Feedback rating average score > 90%

    • KR: Average turn around time for complaints less than 24 hours

That is it for this article. I hope you found this article useful, if you need any help please email me at info@nabeelansar.com


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