Most businesses measure something. The real question is whether those measures help your team focus on what matters.

Two terms come up a lot: KPIs and OKRs. They’re often presented as a choice between one or the other. In practice, most businesses use both.

KPIs and OKRs: what’s the difference?

Key performance indicators (KPIs) track how the business or a role is performing on an ongoing basis. Think sales, customer response times or projects delivered on time. They tell you whether things are on track.

Objectives and key results (OKRs) are for change. An objective sets out what you want to achieve over a set period. Key results are the measurable signs that you’re getting there.

KPIs keep the regular work running well. OKRs focus effort on a small number of priorities.

How to set useful OKRs

1. Link them to business goals

Each objective should connect to something the business is trying to achieve. Ask: “What do we want to achieve this period?”

2. Make key results measurable

Key results should be specific and easy to track. Ask: “How will we know we’ve achieved it?”

3. Make them stretching but realistic

Good OKRs push your team without setting them up to fail. If no one believes a target is possible, it won’t motivate anyone.

4. Review them regularly

Check progress in your regular 1:1s or team meetings. Many businesses set OKRs every quarter, but choose a cycle that suits the way you plan.

An example

Here’s an example for a marketing manager.

Objective: Increase brand awareness and customer engagement.

Key results:

  • Increase website traffic from organic search and referrals by 15%

  • Grow social media followers by 10% and lift the engagement rate by 15%

  • Grow the email subscriber list by 10%

Each key result can be measured and each one connects to a business goal.

The bottom line

Good measures help your team see what matters and help you spot issues early. Use KPIs for the ongoing measures that keep the business running. Use OKRs to drive a few clear priorities.

If you’d like help setting clear goals and measures for your team, we can help. Get in touch.