OKR vs KPI: How do they differ?

Objectives and Key Results (OKRs) are a framework that helps companies define and achieve their best possible outcomes as teams and as an organization. It establishes the “objectives” along with the measurable “key results” that facilitate the achievement of every objective.


Key Performance Indicator (KPI) is a performance measurement framework that evaluates the success of an individual or a particular program.


KPIs focus mostly on the lag indicators. OKR is a strategic framework. 

OKRs has a larger vision of what the organization wants to achieve, whereas KPIs always aim to measure a certain metric.


Examples of OKR and KPI:


OKR: 

Objective: Increase market share by 30%

Key Result #1: Increase sales by 20%

Key Result #2: Acquire 100 new customers


KPI: Average Response Time, average recruitment time, sales revenue


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