The difference between Metrics, KPIs & Key Results

[@RobertPlank]

Metrics are like rulers for your business-they help you measure how well you're doing. Key Performance Indicators are like signposts that show you if you're on the right track with your goals. Key Results are like your GPS-they help you navigate towards your objectives by giving you specific targets. Love it!

[@langsfieldmwahimba8334]

This has opened my understanding. I had problems understanding this topic but thanks to you for simplifying this topic

[@ravindrangnanasivam]

The Best video for beginners to understand KPI's & Metrics

[@Perdoo]

Hi Ravindran, Happy to hear our video has been helpful! We publish content regularly-stay tuned for all the latest insights on OKR, KPI, goals and strategy execution. Best, The Perdoo Team

[@memorylanezz]

Can't praise this enough. Many thanks...

[@araceliestrada8699]

This was very helpful and easy to understand and remember. thanks!

[@johnfredy17]

Excellent contribution. Thanks a lot. PD: It would have been great an example with the three measures (i.e. Metrics, KPI and Key results).

[@Perdoo]

Hi John, Happy to hear you've enjoyed our content! The blog articles mentioned in the description provide you with examples of KPIs and Key Results. We hope that helps! Best, The Perdoo Team

[@medaminesaaidia7475]

I read the article, there is no example !!!

[@satyas1914]

Excellent Explanation!!!!

[@Jeetz]

What about the term performance indicators?

[@ma.claraysabelgarrucho8713]

very helpful! thanks for this.

[@Perdoo]

Hi there, happy to hear you’ve enjoyed our video. We publish on our KZbin channel and blog (www.perdoo.com/resources/) frequently-stay tuned for all our new content!

[@createinads6323]

loved the explanation

[@WizOWash]

Wonderfully explained! Thanks so much

[@NS-tz3nt]

This is very helpful thank you

[@Jesus-ug7md]

How do you differentiate Start value and current value in this video?In KPI, you are saying CURRENT value as start value and adding Target value. However, in KR, you including all three current, start and Target. How and why? Please answer me either in this chat or as a video. Appreciate your commitments!

[@marianamendoncalima8977]

What are the sources of the video and the articles? Is it based on academic articles?

[@AllieM91]

I believe not it is not exactly based on academic research, although academic research on the topic can be questionable. I say this as I hold a PhD in performance management and the most frustrating part was the lit review. All he said sounds all the same to me, only wrapped differenty. There are also several inconsistencies with the literature/practice. For example, NPS, customer renewal rate or churn rate are often used as KPIs by companies that use BSC to measure customer attrition or customer advocaty. I have also seen the same measures (named slightly differently) being used as part of a Key Result by organizations that work with OKRs. Similarly, Scorecard methodology also says that KPIs are metrics that become Key because they are associated with an objective. This piece of information is only attributed to the KR in this video. In a nutshell, it is the framework and the guiding principles of the framework that makes all the difference in how we define the terms and how we use measures, not the measure itself. People have been using measures for thousands of years. KPIs or KRs are relatively new terms that (in 2 different systems) reffer to simply put the most important measures. The main difference coul be that KRs are actually more encompassing than KPIs, in the sense that they can also be based on actual results (for example a finalizing the prototype for a product) , not only metrics, while KPIs are basically the most important metrics of your business. What makes them the most important metrics: the objectives.

[@caylinpenney4762]

thank you for writing the transcript! the auto-generated ones are horrible but reading along really helps me out :)

[@jensholze7218]

Hey, thanks for this video. Very clear. I have a question. Can you suggest me a video about setting good annual objectives?

[@Perdoo]

Hi Jens, At Perdoo we believe Annual OKRs can create friction in an organization’s OKR program. Annual OKRs live between Strategic and Quarterly OKRs-they are usually too short-term to provide meaningful direction and too long-term for people to actively work on them. Due to this, they tend to limit agility in today’s ever fluctuating market. This article explains why working with Annual OKRs isn’t always a good idea: www.perdoo.com/blog/why-you-should-stop-working-with-annual-okrs/. However, to get a better overall understanding on how to set the right OKRs, our resource How to write great OKRs can be a good place to start: www.perdoo.com/how-to-write-great-okrs/. I hope that helps!

[@mmerwqq_9244]

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[@mmerwqq_9244]

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[@mmerwqq_9244]

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[@mmerwqq_9244]

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[@Pacoarceaguilar]

Superb!

[@pauljoseph3081]

So many companies use this the wrong way. Instead of using it as data to analyse and resolve a challenge, they use it to enforce ridiculous threats just to pass a certain failing KPI, especially in 3rd party call center companies.

[@jetchico]

How do you create KRA & KPI to measure how trainings contribute to business performance?

[@Perdoo]

Hi jetchico, Unfortunately, we're not able to answer individual questions like these. We do take questions like yours into account when creating new videos. If you need immediate help with your question, have a look at our Resources hub (perdoo.com/resources) or Perdoo Coaching (perdoo.com/pricing/?t=coaching). Please do note that our coaching services are only available to customers of our software. Kind regards, The Perdoo team

[@osamanasher2550]

Hi dears Kindly I confuse in one thing as follows . Kpi is used at operational or at tactical level ? When I use big data technology to create predictive model AM I use results as benchmarking or as performance indicator to compare between actual results and target at operation or at tactical level ? Thank you for your valuable reply in advance

[@osamasarhan8790]

Helpful!, Can be with examples please?

[@Perdoo]

Hi there, A metric is a tool used to measure something. So in business terms you might want to measure your employee satisfaction, so you might focus on the metric: Employee Net Promoter Score (eNPS). A KPI includes a metric, but also a target value, and a current value, to help you measure the metric. So for example your KPI could be to ensure your eNPS is 50 or higher. (eNPS ≥ 50) For Key Results, for example, you may create an OKR to improve your employee satisfaction. Your Objective could be “Our employees have never been happier”. A Key Result could be: “Increase eNPs from 30 to 50”. Your Key Result includes a metric, a target value, a start value and a current value. They’re similar so I understand the confusion, however, they’re used for different purposes. Perhaps this video can provide further clarity: kzbin.info/www/bejne/gJbPiWxspbmHpZY. Hope this helps!

[@karimmunthe]

very interesting, but if you put in your video like table and ecxemple make more perfect

[@Perdoo]

Thanks for your suggestion Abdul. We'll take that into account when we'll start working on a new version of this video.

[@montgomery3912]

Sir I have a question on kpis, you mentioned that it also has target value. Where will the target value come from? Is there a standard for that or it will depend on the one who'll measure it?

[@Perdoo]

Hi Montgomery, a target value simply defines the value you'd like to achieve for a specific KPI - and these are specific to your team or org. You can of course use industry benchmarks or your past actual values (ie. if you want to achieve a higher target this month as compared to last month) as inspiration. Here's our Ultimate Guide to KPIs for further reference: www.perdoo.com/kpis/ Hope that helps! - The Perdoo Team

[@bassx9829]

What is the difference between Current Value and Start Value in Key Results?

[@rangaranga5427]

any example for each ?

[@Perdoo]

Hi there, A metric is a tool used to measure something. So in business terms you might want to measure your employee satisfaction, so you might focus on the metric: Employee Net Promoter Score (eNPS). A KPI includes a metric, but also a target value, and a current value, to help you measure the metric. So for example your KPI could be to ensure your eNPS is 50 or higher. (eNPS ≥ 50) For Key Results, for example, you may create an OKR to improve your employee satisfaction. Your Objective could be “Our employees have never been happier”. A Key Result could be: “Increase eNPs from 30 to 50”. Your Key Result includes a metric, a target value, a start value and a current value. They’re similar so I understand the confusion, however, they’re used for different purposes. Perhaps this video can provide further clarity: kzbin.info/www/bejne/gJbPiWxspbmHpZY. Hope this helps!

[@sammmmmyyyyy]

@@Perdoothanks. Very helpful!

[@mikestoffers1707]

Who is the speaker in the video?

[@Perdoo]

Hi there, the speaker is Henrik-Jan van der Pol, CEO of Perdoo (www.perdoo.com). Perdoo is an OKR platform used by ambitious organizations to execute strategy and drive 10x growth. We offer all the tools and expert coaching you need to turn strategy into results.

[@marijapopovic9024]

Very helpful, thank you very much! I have a question, although I don't know if you can help me. For my bachelor thesis, I have to evaluate a company and calculate important KPIs. I thought I would divide up the following points like this: Earnings indicators (EBIT, ordinary operating result, EBT), then under profitability indicators (ROI,...) liquidity indicators and cash flow. However, my professor recommended that I simply subdivide this under Cash Analysis, Profit Analysis and Strategic Analysis. Unfortunately, I can't find anything on the Internet that I can calculate under Cash Analysis, for example, and I don't want to do anything wrong. I would be very grateful for your help!

[@tiagocosta9868]

Thank you.

[@sinanam]

I have been struggling to come up with correct OKR for my HR department. Our CEO insists each department head to come up with one objective and 3 key results. Due to financial crisis we have been facing, decide to come up with achieve HR cost optimization or cutting sister for this quarter. But the issue can’t know how to quantify my key results . We are using your software Perdo. Any advise for me in this particular subject and if you have some examples specially for HR . Thanks

[@Perdoo]

Hi Ali, We understand that given the current circumstances, realigning your goals is key in achieving your organization's strategy. Here are a few resources that can point you and your team in the right direction in establishing what matters most at the moment and help set goals accordingly: How to write great OKRs: www.perdoo.com/how-to-write-great-okrs/ The ultimate guide to OKR: www.perdoo.com/the-ultimate-okr-guide/ The anatomy of a Key Result: www.perdoo.com/resources/what-is-a-key-result/ The one mistake almost everyone makes when setting Key Results: www.perdoo.com/resources/setting-key-results/ I hope this helps and wishing you and your team all the best! Best, The Perdoo Team

[@prashimtoolsee496]

thank you!

[@minotchkaordinado8102]

This is very helpful. Do you have samples on how to generate KPI in the Process and Key results as well? We need to measure our indices in semiconductor.

[@Perdoo]

Hi Minotchka, Happy to hear our video has been helpful! Please take a look at our Resources hub (perdoo.com/resources), we have a large array of resources that can point you in the right direction when setting KPIs and OKRs. Best, The Perdoo team

[@purpletulip1688]

Still not easy to differentiate.. anyhow thanks

[@hussienm2382]

Video that do not have kpi , matrix or key result!

[@Perdoo]

Hi there, A metric is a tool used to measure something. So in business terms you might want to measure your employee satisfaction, so you might focus on the metric: Employee Net Promoter Score (eNPS). A KPI includes a metric, but also a target value, and a current value, to help you measure the metric. So for example your KPI could be to ensure your eNPS is 50 or higher. (eNPS ≥ 50) For Key Results, for example, you may create an OKR to improve your employee satisfaction. Your Objective could be “Our employees have never been happier”. A Key Result could be: “Increase eNPs from 30 to 50”. Your Key Result includes a metric, a target value, a start value and a current value. They’re similar so I understand the confusion, however, they’re used for different purposes. Perhaps this video can provide further clarity: kzbin.info/www/bejne/gJbPiWxspbmHpZY. Hope this helps!

[@رامینمرادی-غ4ف]

❤❤❤❤

[@vaniranganath2866]

good once, but with example would have been helpful

[@Perdoo]

Hi there, A metric is a tool used to measure something. So in business terms you might want to measure your employee satisfaction, so you might focus on the metric: Employee Net Promoter Score (eNPS). A KPI includes a metric, but also a target value, and a current value, to help you measure the metric. So for example your KPI could be to ensure your eNPS is 50 or higher. (eNPS ≥ 50) For Key Results, for example, you may create an OKR to improve your employee satisfaction. Your Objective could be “Our employees have never been happier”. A Key Result could be: “Increase eNPs from 30 to 50”. Your Key Result includes a metric, a target value, a start value and a current value. They’re similar so I understand the confusion, however, they’re used for different purposes. Perhaps this video can provide further clarity: kzbin.info/www/bejne/gJbPiWxspbmHpZY. Hope this helps!

[@germanpronunciation5273]

All KPIS are metrics but not all metrics are KPIS

[@arunmandal2846]

I found the videos to be very dry and theoretical. It ended up confusing more. May be using a real business example would have helped.

[@makan8829]

Thanks!