What is Okr and KPI?

OKR is a goal-setting framework. For each OKR, there is an objective to be achieved, along with a set of metrics that will measure the achievement of that objective, called key results. KPIs determine factors needed to achieve success in an organization.

What is the meaning of OKRs?

objectives and key results

OKRs, or “objectives and key results,” are a goal setting methodology that can help teams set measurable goals. While most companies set goals, only 16% of knowledge workers say their company is effective at setting and communicating company goals.

What is an OKR example?

The key result aspect of a team OKR is where you get into the details, breaking down that big hairy objective into more tangible, realistic, measurable results. For example, if your objective is “Increase sales volume”, then key result examples might be: 50% lift in new lead generation.

Should I use OKR and KPI?

Key Performance Indicators and Objectives and Key Results coexist very well and you should use both frameworks in your business but for completely different purposes. Use OKRs for goal-setting and improving your business and KPIs for monitoring general business performance.

What is an example of a KPI?

This is a useful touchstone whenever you’re considering whether a metric should be a key performance indicator. SMART KPI examples are KPIs such as “revenue per region per month” or “new customers per quarter”.

How do you write good OKRs?

How to write OKRs: A step-by-step guide

  1. Understand your company goals. Writing effective OKRs starts with understanding your organizational goals. …
  2. Choose the right tools. …
  3. Involve your whole team. …
  4. Write an OKR objective statement. …
  5. Develop key results. …
  6. Plan your initiatives. …
  7. Track them consistently. …
  8. Celebrate 70%


How are OKRs measured?

OKR Grading



To calculate a score, you have to divide the target set by the final result. Using the example above, if your team’s KR was to “get 100 customers” but they only got 50, their final score would be 0.5, but if they got 20, the score would be 0.2. Having this score we can assign a grade to the Key Result.

Why is KPI better than OKR?

Differences between OKRs and KPIs



OKR is a goal-setting framework. For each OKR, there is an objective to be achieved, along with a set of metrics that will measure the achievement of that objective, called key results. KPIs determine factors needed to achieve success in an organization.

What are the 5 smart goals examples?

5. SMART goal example for increasing sales

  • Specific: I will learn new sales techniques to increase sales at work.
  • Measurable: My goal is to double my sales in four months.
  • Attainable: I’ve been a sales associate for two years now. …
  • Relevant: I want to feel more confident at my job and learn new skills.

What is a good objective OKR?

Effective OKRs represent meaningful change, improvement and growth. They’re our priorities for the next 30-90 days. Effective Objectives are meaningful, audacious and inspiring. Effective Key Results are specific and timebound, aggressive and realistic, and measurable and verifiable.

Is a KPI a goal?

But KPIs are NOT the same as goals. The goal is the outcome you hope to achieve; the KPI is a metric to let you know how well you’re doing working towards that goal. Metrics shouldn’t become targets.

How are OKRs different from smart goals?

Montgomery characterizes the difference between SMART goals and OKRs this way: “With SMART, there’s no objective. In the OKR approach, the objective is an aspirational statement that ties into the strategy. SMART goals just stand on their own as quantitative results.

How do KPI and OKR work together?

OKRs and KPIs work perfectly together. KPIs help monitor performance and identify problems and areas for improvement. OKRs help solve problems, improve processes, and drive innovation.

What are the five recommended categories for OKRs?

Because of this, OKRs, objectives and key results provide such a robust goal-setting framework that helps you achieve your business vision. OKRs provide your business with five important elements: focus, accountability, engagement, transparency and visibility.

How many OKRs should a team have?

We typically recommend setting a maximum of 3-5 OKRs per team per quarter. This is a maximum, not a minimum – it’s perfectly appropriate to have only 1-2 OKRs. What matters most is that you don’t pick a number and then let that dictate how many goals you need to achieve within the given timeframe.

How do I set up OKRs?

OKRs Best Practices

  1. Keep it Simple. Focus on objectives you know you can achieve in the given timeframe. …
  2. Be Specific. …
  3. Cascade Your Objectives. …
  4. Make it Measurable. …
  5. Don’t Worry About Stretch Goals. …
  6. Break Key Results into Smaller Goals. …
  7. Celebrate and Recognize.


Why do we use OKRs?

OKRs help you track and measure progress



Track your progress on a regular basis. Ideally weekly. Record how you are doing towards your key results. There are various tools to help expedite this but a Google Sheet or something similar will work for smaller companies.

How do I set up OKRs?

OKRs Best Practices

  1. Keep it Simple. Focus on objectives you know you can achieve in the given timeframe. …
  2. Be Specific. …
  3. Cascade Your Objectives. …
  4. Make it Measurable. …
  5. Don’t Worry About Stretch Goals. …
  6. Break Key Results into Smaller Goals. …
  7. Celebrate and Recognize.


What is an OKR plan?

OKR, which stands for objectives and key results, is a planning and goal-setting technique made famous by Intel and Google. OKRs represent aggressive goals and define the measurable steps you’ll take towards achieving those goals. They’re typically used to set quarterly goals, but can also be used for annual planning.

What is the difference between OKR and smart goals?

Montgomery characterizes the difference between SMART goals and OKRs this way: “With SMART, there’s no objective. In the OKR approach, the objective is an aspirational statement that ties into the strategy. SMART goals just stand on their own as quantitative results.

Are OKRs same as goals?

Goals are the kind of long-term strategy or guideline. They explain what you want to achieve in your organization, and they are usually long-term and global. OKRs are short-term goals (often created quarterly) that are split into two parts: an Objective (the “what”) and Key Results (the “how”).

What are the 5 SMART goals examples?

5. SMART goal example for increasing sales

  • Specific: I will learn new sales techniques to increase sales at work.
  • Measurable: My goal is to double my sales in four months.
  • Attainable: I’ve been a sales associate for two years now. …
  • Relevant: I want to feel more confident at my job and learn new skills.