OKR vs KPI: Understanding the Differences and When to Use Each — OKR Part 1

Objectives and Key Results (OKR) and Key Performance Indicators (KPI) are both popular frameworks for setting and tracking goals. While they have some similarities, there are also some important differences between the two. Understanding these differences can help organizations decide which framework is the best fit for their needs.

One key difference between OKR and KPI is the focus of the framework. OKR is a goal-setting framework that is designed to help organizations achieve specific objectives. It is used to set clear, measurable goals and track progress toward them. The focus of OKR is on alignment and progress, and it is used to help organizations stay focused on what matters most.

On the other hand, KPI is a performance measurement framework that is used to track and measure the success of an organization or individual against predetermined goals. It is typically used to measure progress against specific targets, such as revenue, customer satisfaction, or efficiency. The focus of KPI is on measuring and evaluating performance.