OKR & KPI | Notion

OKRs (Objectives and Key Results)

What they are: A goal-setting framework that defines ambitious, qualitative objectives and the quantifiable results that measure progress towards those goals.
Focus: Directional and inspirational – they push teams to achieve greater outcomes.
Structure:
- Objective: The big-picture, aspirational goal (e.g., "Become the market leader in sustainable products").
- Key Results: 3-5 measurable outcomes that indicate success in reaching the objective (e.g., "Increase market share by 10%", "Reduce carbon footprint by 25%").
Best for: Driving innovation, significant change, and aligning teams toward common goals.

KPIs (Key Performance Indicators)

What they are: Specific metrics that track the performance of ongoing processes or aspects of a business.
Focus: Monitoring the health and performance of an existing system or process.
Structure: A single measurable value (e.g., Customer satisfaction rating, Website traffic, Revenue).
Best for: Measuring day-to-day operational success and maintaining performance standards.

Key Differences

Characteristic	OKRs	KPIs
Purpose	Set ambitious goals, inspire change	Measure performance of existing processes
Scope	Forward-looking, focused on improvement	Track current status and efficiency
Timeframe	Typically set quarterly or annually	Tracked on varying frequencies (daily, weekly, monthly, etc.)

How OKRs and KPIs Work Together

OKRs and KPIs are often used in a complementary way:

KPIs within OKRs: KPIs can be excellent key results for OKRs, providing the quantifiable metrics to track progress towards an objective.
KPIs inform OKRs: Ongoing KPI tracking can help identify areas for improvement and inspire the setting of ambitious OKRs.