Goal Setting 101: OKR vs. KPI
Every business owner wants to operate a profitable and successful brand, but it's not always clear how to achieve that goal. No matter your company's type or size, it is imperative to keep a regular eye on its performance to take it to the next level. This is where OKR and KPI come into the picture.
Those who want their businesses to be more profitable than ever before can take help from OKR and KPI. Both of these systems can help employers in measuring the success and failure of their companies. Whether you have heard of OKR and KPI, this post will provide a quick comparison between both terms. Let's start with the basic information.
What is OKR?
OKR (Objectives & Key Results) is a goal-setting structure that helps businesses define their goals and track outcomes. Apart from representing company objectives, an OKR dashboard also illustrates measurable steps that you can take to achieve them.
What is a KPI Report?
A Key Performance Indicator or KPI is a value that states how effectively a business can achieve its key objectives. Also called a KPI dashboard or flash report, companies use KPIs to assess their success. Moreover, owners can apply KPIs to projects, products, programs, and other initiatives. A KPI report makes it easy for employers to measure the success of different aspects, including sales goals, individual departments, and social media metrics, and others.
OKR vs. KPI: Difference Between Both
One key difference between OKR and KPI is the aim behind the goal setting. OKR goals are pretty ambitious and aggressive, whereas KPI goals are usually obtainable and demonstrate the outcome of a project or process.
Both OKRs and KPIs seem to be the same, but KPIs are known to evaluate the health of the business initiative. Though both of these key performance indicators are used to measure performance, OKRs can be seen as evolved KPIs because they are more precise with quantifiable outcomes.
Being a business owner, you don't require to leave KPIs for OKRs, but you must distinguish the result between these two. OKRs are related to a company's goals rather than staff's work. On the other hand, KPIs can be linked directly to the everyday work of an employee - they are designed to achieve success in the workplace.
OKR vs. KPI: Choose the Right Dashboard
When evaluating whether to pick OKRs or KPIs, it's really up to your end objectives. For instance, if you plan to change your overall direction, an OKR dashboard might be the better choice. However, if you want to improve a project or plan that's been done before, a KPI dashboard makes a good alternative.
No matter which technique you select, the bottom line is that measuring and reviewing performance is the only way to grow your organization. If you are not setting business goals or setting them but not reviewing on time, you are definitely missing an opportunity to rise higher. Besides, when it comes to keeping an eye on your business performance, the best way is to invest in productivity management software.
Tuqqi is an AI-powered virtual workspace that makes it easy for owners to measure their employees' performance and increase productivity at the workplace. It delivers a simple yet powerful way for employers to run a successful brand from their fingertips.