What’s the Difference Between OKR and KPI?

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You’ve most likely heard the terms before, but what’s the difference between them? OKR stands for objectives and key results. The OKR process begins with an objective (O) and three to four key results (KR). KPI (Key Performance Indicators) indicates performance, just as the name entails, and a handful of them make up a scorecard.
There are two types of key results: outcome-based and efforts efforts-based. The outcome-based is often quantifiable, whereas the efforts efforts-based is a project or initiative. KRs can be outputs or activities.
A KPI is equivalent to an output. Think of it like this; : a KPI is an objective outcome of some effort. Your KPIs can be your quantifiable or outcome-based key results.
Using our example, the objective, “create wildly loyal customers,” has four key results. The first two key results are also KPIs because they fall under the scope of being either quantifiable or an outcome of some effort.
OKRs and KPIs share similarities, and it’s often more advantageous to think of them working together rather than being two separate processes. When setting up OKRs in your organization, you’ll often find a handful of KPIs among your key results. Now that you understand the difference between OKR and KPI, you can effectively utilize their benefits in strategic planning for your organization.
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Download the guide here - onstrategyhq.com/okrs-that-wo...

[@felixong]

Excellent explanation. Concise and easy to understand ! Thank you!

[@virtualstrategist]

Glad it was helpful!

[@bokangmareka1693]

Thank you Erica! Its an awesome one indeed! You make it all look simple..... thanks

[@virtualstrategist]

You are so welcome!

[@pedrosiena6930]

It helped a lot. Clear. Clear. Clear. Tks.

[@virtualstrategist]

Glad it helped!

[@faissalloussaief149]

Informative and simple. Kindly keep always zooming out the white board so we can easily follow the bullets and follow your talks. You nailed 🤩🥇

[@virtualstrategist]

Thanks for the feedback.

[@user-iy6bu5he8e]

that's so goooooooooooood

[@fallofmanbrand]

amazing video

[@virtualstrategist]

Glad you think so!

[@deepikasingh]

Thanks for the video. In this video KPI as been categorised as output, Could you please share some light on your take on outcome driven Key results? If one is able to measure the success of an objective with a measurable metrics then that KR is outcome driven and KPI in this sense can be that metric hence isnt it outcome driven results or? Output is something like an activity or milestone. With OKRs one is actually trying to avoid output driven key results but is looking for outcome based key results. Like they say what cant be measured cannot be managed!

[@virtualstrategist]

Check out our guide on OKRs vs. KPIs for more info onstrategyhq.com/okr-vs-kpi-guide-download/

[@prestpr]

Thank you Erica for being generous with your IP and thinking - the series is very useful. I am (only) confused at 4.02 minutes as: KR3 (% with succession plans) "is a great output" and * KPIs = Outputs, But KR3 is not a KPI? A quick answer would be useful.

[@virtualstrategist]

Glad it was helpful!

[@railzip]

OKRs for life!!!!

[@virtualstrategist]

Yes!

[@sreeramv112]

Thanks for the video. This is an excellent attempt to answering this highly debated question. That said, there is a small contradiction on the white board. In the bottom it is written that KPI = Output. In the explanation it was mentioned that the No:of success plan is a great output, but not a KPI?

[@virtualstrategist]

You are very welcome!

[@cmonster67]

We've always called these Key Result Indicators.

[@virtualstrategist]

Great!

[@fallofmanbrand]

great video bro

[@virtualstrategist]

Thanks for the visit

[@eaemerson4852]

Very good information. Tip on the video; please use different lighting. It seemed at any moment, Hannibal Lecter was going to walk on screen with you.

[@virtualstrategist]

Thanks for the tip!

[@just4jaime]

Looking for videos 3,4,5,6 on OKRs the first two videos said 1/6 and 2/6. Am i just missing them?

[@virtualstrategist]

Hi Jamie, check out the playlist with all the OKR videos here: kzbin.info/aero/PLTXaBWresqdFkIJQxKHgghxPtsucgKYVG

[@AgileStateofMind]

Hey, I am not so sure I follow. To my understanding the last KR is an Initiative not a Key Result. It is a task to be performed not a Key result. I also don't really like the wording in the KRs. What does it mean "implement"? I am confused.

[@virtualstrategist]

Key Results can be either initiative based or metric based. For example, if one's objective is to become more established on social media, two equally valid key results to achieve that objective could be- 1. implement a cross-platform posting schedule with regularly updated content, and 2. increase Instagram follower count from 1k to 3k by Q3. KPIs are only quantitative in nature, but Key Results can be qualitative or initiative. We like to say that a KPI can always be a Key Result, but a Key Result isn't always a KPI.

[@AgileStateofMind]

@@virtualstrategist I respectfully disagree. KR is a way to measure progress towards a goal. Not a task to be delivered. A task can be derived from a KR but cannot be a KR itself. By saying what you say, unfortunately, you are perpetuating an already poor way of setting OKRs.

[@BelajarSaham]

Conclusion is There is no significant different

[@sariwidianingsih8812]

there are a lot of code in monitor...not comfort

[@virtualstrategist]

Thanks for the feedback.

[@Gorboduc]

This left me more confused than before lol.

[@virtualstrategist]

Check out our guide on OKRs vs. KPIs for more info onstrategyhq.com/okr-vs-kpi-guide-download/