Many companies use OKRs and KPIs interchangeably, but they solve different business problems.
OKRs (Objectives and Key Results) help you decide what change you want to make next. They are directional, ambitious, and time-bound.
KPIs (Key Performance Indicators) help you monitor whether the business is healthy. They are ongoing measures that show whether an important area is performing as expected.
Use OKRs to drive focus and change. Use KPIs to keep score and spot problems early.
An OKR describes a meaningful objective, then defines the results that would prove you achieved it.
A good OKR should answer:
For example:
OKRs work best when they are reviewed regularly and reset quarterly or annually. They should create alignment around the next important improvements.
A KPI tracks an important metric over time. It tells you whether a team, process, or business area is performing within the expected range.
A good KPI should answer:
For example:
KPIs are not usually projects. They are ongoing signals. If a KPI becomes unhealthy, it may inspire a new OKR.
| Use | OKRs | KPIs |
| Purpose | Drive change | Monitor performance |
| Timeframe | Usually quarterly or annual | Ongoing |
| Style | Ambitious and outcome-focused | Stable and measurable |
| Question | "What do we need to improve?" | "Are we healthy?" |
| Example | Reduce onboarding time from 10 days to 3 days | Keep customer satisfaction above 90% |
The best businesses use KPIs and OKRs together:
For employee performance measurement, see Do you have KPIs for your Annual Employee Reviews?.