OKRs and. KPIs: Difference, Examples & How to Use Both
OKRs and KPIs are two of the most effective management tools you can adopt—but they do different jobs. This article explains the difference in depth, shows how they work together, and offers practical steps to implement both in your organisation.
Executive Summary:
KPIs monitor the overall health of a company by tracking metrics such as revenue, profit, costs, customer satisfaction, or asset-to-liability ratios. They tell you how you are doing but not what to do. OKRs, on the other hand, set the direction: they define strategic priorities and concrete initiatives that aim to improve those KPIs. In other words, KPIs measure the outcomes, while OKRs guide the actions that make those outcomes possible.
OKR Consultant Joern Steinz (MBA)
How Can an OKR Consultant Help?
Experienced OKR consultants bridges the gap between strategy and execution. They help leadership teams define meaningful Objectives, ensure Key Results are measurable, and align company-wide priorities. A consultant also installs routines like weekly check-ins and quarterly reviews, so that OKRs become part of everyday work rather than a one-off exercise.
An OKR consultant like Joern Steinz will proactively address the most common misunderstandings, worries, and questions based on years of experience. This hands-on guidance not only creates clarity, alignment, and accountability but also facilitates the cultural change needed to work successfully with OKRs—and ensures they truly influence your KPIs.
Quick Definitions
What are OKRs?
OKRs (Objectives and Key Results) help organisations achieve progress on their most important goals within a specific time frame (often a quarter).
- Objective: A clear, inspiring direction.
- Key Results: 2–5 measurable outcomes that prove the Objective has been reached.
In practice: OKRs answer: “Where do we want to go, and how will we know we’re getting there?”
What are KPIs?
KPIs (Key Performance Indicators) measure how a company, team, or process is performing on an ongoing basis.
- Examples: revenue, profit margin, customer satisfaction, employee turnover, asset-to-liability ratio.
- KPIs can be leading (predictive) or lagging (outcome) indicators.
- They change infrequently and are ideal for long-term monitoring.
In practice: KPIs answer: “How healthy is our business right now?”
The Core Difference
| Aspect | OKRs | KPIs |
|---|---|---|
| Purpose | Drive change and strategic progress | Monitor current performance and health |
| Nature | Ambitious, time-bound, action-oriented | Stable, ongoing, descriptive |
| Time Horizon | Typically quarterly | Continuous |
| Structure | Objective + Key Results | Individual metric with targets |
| Role | Defines priorities and actions | Reports outcomes and performance |
In practice: Think of KPIs as the dashboard and OKRs as the steering wheel.
How OKRs and KPIs Work Together
- Start with KPIs: Identify areas that need focus.
- Set an Objective: Decide what you want to improve.
- Define Key Results: Translate improvement into measurable outcomes (often using KPI metrics).
- Act and Review: Run initiatives, track weekly progress, and adjust.
- Evaluate: At quarter end, grade OKRs. KPIs keep running for continuity.
In practice: KPIs might show “customer churn is too high.” An OKR then defines what you’ll do to reduce it.
Real-World Examples
SaaS Company
KPI baseline: Churn rate = 8%
Objective: Earn customer loyalty through a world-class support experience.
- Reduce churn to 5%.
- Increase NPS from 48 to 65.
- Cut first-response time from 12h to 2h.
In practice: The KPI shows the problem. The OKR defines the actions to fix it.
Retail Chain
KPI baseline: Monthly revenue = €1.5M; online share = 8%
Objective: Accelerate digital growth.
- Grow online revenue share to 20%.
- Launch e-commerce in 2 new regions with >€300k monthly run-rate.
- Add 50,000 newsletter subscribers.
In practice: KPIs keep tracking total revenue, while the OKR pushes digital transformation.
HR Department
KPI baseline: Voluntary turnover = 12%
Objective: Improve engagement and retention.
- Raise engagement score from 65% to 75%.
- Cut turnover to 8%.
- Achieve 30% of hires via internal mobility.
In practice: The KPI signals a problem; the OKR provides the solution roadmap.
Common Pitfalls (and Fixes)
- Confusing tasks with results: A Key Result must be measurable (e.g., “Increase activation from 22% to 35%”).
- Using KPIs as OKRs: “Maintain 99.9% uptime” is a KPI target, not a strategic OKR.
- Too many OKRs: Keep 1–3 Objectives per team.
- Linking OKRs directly to pay: Reduces ambition. Use OKRs for focus, not bonuses.
- No weekly check-ins: Hold a 15–20 minute review each week.
In practice: Simplicity, focus, and rhythm are key.
Steps You Can Take This Quarter
- Review your KPIs and identify weak spots.
- Choose one priority area.
- Write one clear Objective.
- Define 2–4 measurable Key Results.
- Hold short weekly check-ins.
- Grade and reset after three months.
FAQ
Do OKRs replace KPIs? No. KPIs track health; OKRs drive change.
How many OKRs should we have? Typically 1–3 Objectives per team.
Should Key Results be outputs or outcomes? Prefer outcomes (customer behaviour, revenue impact, quality) over activities.
Work With OKR Consultants
We help organisations connect strategy to execution by combining clear OKRs with the right KPIs. We design goals, set up routines, and build the confidence for teams to deliver real results.