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
👋 Thanks for reading, See you next time
Comments