tl;dr: One looks forward. One looks real-time.
One of the questions we get a lot at Gtmhub is about the difference between OKRs (Objectives and Key Results) as a methodology and KPIs (Key Performance Indicators) as a metric.
I thought this article does the best job I’ve seen to date in explaining the differences.
- OKRs frame forward looking goals– “I want to lose 5 kilos this year.”
- KPIs are vital signs–“I’ve lost 1.3 kilos thus far this year and am on/not on track.”
- OKRs have a time commitment “this year.” KPIs are about “today”
Those are the obvious ones, but to the post yesterday re: “Mindset Shifts,” OKRs are more transparent, designed to shift culture, stretch knowledge workers’ ability and thinking, and shouldn’t be used in performance reviews.
The knowledge economy is about moving from an industrial age/efficiency mindset to an outcome-oriented, forward-facing, and effectiveness mindset.
OKRs are the cultural bridge that helps organizations move from one to the other.
KPIs are carried across, like belongings on your trip, but they aren’t the mechanism for transformation.
OKRs are.
