When it comes to business process metrics, we all remember KPIs or recently OKRs as well. But how can we use them?
OKR is a strategic framework, whereas KPIs are measurements that exist within a framework.
So let's dive into the definitions. As you might be familiar, KPI stands for key performance indicators. Also, OKR is objectives and key results. It is never been easy to compare OKRs and KPIs because they are both parts of a similar method, and these two fit together somehow. However, KPIs are more focused on measuring success rather than setting goals. While the OKR system sets targets and leads teams to measure the results.
KPIs are recommended to 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 best 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 ... they are complementary rather than different.
OKRs inspire you to set aggressive objectives and break those down into key results. And KPIs provide a way to monitor performance, measure success.
So the trip to these metrics are 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 are they tell you if everything else is OK.
Conclusion
If your KPIs and OKRs sound similar, that is ok. Just remember that one’s an outcome and the other a measurement. However, using both along with the strategy sounds like a winning combination to me.
