KPI or OKR?

KPIs (Key Performance Indicators) and OKRs (Objectives and Key Results) are both tools to measure business performance, but they serve different purposes and work in different ways.

Key Performance Indicators

KPIs are specific metrics that track how well a business or team is performing against ongoing targets. They measure steady-state performance and show whether you’re on track with core activities. KPIs tend to be more stable and focused on monitoring current operations.

Think of KPIs as the dials on your car dashboard. They give you real time information about your speed, engine temperature, fuel level, etc. They tell you how well your car is performing at any given moment of the journey. In business, your KPIs do the same thing – they tell you how well you’re doing in relation to what you want to achieve.

• Example: A sales team tracking the number of monthly leads or closed deals is using KPIs to measure ongoing success.

Outcomes & Key Results

OKRs are a goal-setting framework that combines qualitative goals (Objectives) with quantifiable outcomes (Key Results). They focus on ambitious, time-bound goals that push the organization forward. OKRs are dynamic and adaptive, often reviewed and adjusted regularly to stay aligned with strategic priorities.

Think of OKRs as a type of business GPS. In your car you might use of Waze or Google Maps to travel from one location to the next. You input the destination (outcome) and the GPS gives you directions that help you stay on course, giving you landmarks to look out for along the way (key results). And if traffic flows change, the GPS may alter the route and suggest differnt landmarks to navigate by – but the destination stays the same. In business, you set an aspirational objective, and work out some specific targets so you know you’re on track.

• Example: Using OKRs, the sales team might set an objective to “Expand market presence in new regions,” with key results like “Increase sales in new regions by 25%” or “Launch 3 new regional campaigns by Q4.”

KPIs tell you how you’re doing now based on specific, ongoing measurements.

OKRs tell you where you want to go and how you’ll measure success along the way, making them more strategic and inspirational.

Using both together is powerful: KPIs monitor steady performance while OKRs drive progress with clear, meaningful goals.

This distinction helps you to track day-to-day operations with KPIs while motivating teams toward bigger, transformational objectives with OKRs.​