OKR vs KPI? Which one is critical for your organization?
Organizations can use both KPIs and OKRs as valuable tools for goal management. But when and how to employ them both are frequently questioned. Here are a few of the frequent questions that we encounter.
What are KPIs? How are they used?
The essential measurements used to monitor an organization's, team's, project's, or an individual's performance are known as key performance indicators. KPIs make it easier to establish precise goals and track advancement over time. Only crucial metrics should be taken into consideration as KPIs. KPIs make it easier to assess the effectiveness of any project or individual operation.
KPIs are only as useful as the actions they motivate. Because every business is different, it's critical to choose the KPIs that will best assist it reach the goals that have been set for it.
KPIs helps organizations
- Focus on the things that are important
- Track the health
- Make adjustments
How is OKRs different from KPIs
KPIs are metrics that track the advancement and performance of a particular activity or process, whereas OKRs are a Goal Management methodology or framework that aids organisations in managing and aligning their goals.
While KPIs are typically attainable goals, OKRs can be motivating, aggressive, and ambitious and are intended to drive businesses towards aggressive growth.
KPIs are concerned with monitoring the achievement of particular targets, whereas OKRs work well with bigger vision and guiding organisations towards their strategic goals.
Despite their differences, OKRs and KPIs complement each other quite well and can aid in the expansion of an organisation. KPIs can be used within OKRs to monitor particular goals. A KPI can also be improved using OKRs.
Why need OKRs when you already use KPIs?
KPIs are used to track specific targets, while OKRs helps in bringing everyone together around the overarching objectives.
KPIs are results that are particular, whereas OKR is focused on business outcomes.
Also, OKR is effective when an organisation changes its strategic direction or has a wider vision. Organizations can implement significant changes with OKR's assistance and end the status quo.
Although OKRs and KPIs can overlap, both are important to a business and have separate functions. While OKRs help to enhance processes, encourage innovation, and achieve faster growth, KPIs help to monitor performance and the health of vital measurements, which will help to identify the need for improvement. KPIs and OKRs work best together to help organisations execute their strategy.
Examples of KPIs and OKRs
KPI for Sales
- No of closed details this quarter
- Deals closed per Sales Rep
- No of lost opportunities
OKRs for Sales for a specific quarter
- Increase the number of close deals by 10%
- Improve Sales enablement Process
- Reduce number of lost opportunities by 20%
- Increase average deal amount by 2K
OKRify – OKR Goal Management and Strategy Execution Application for Salesforce provides the ability to manage and track OKRs and KPIs at organization, team or individual levels. OKRify provides the most intuitive user friendly solution in Salesforce for both OKRs and KPIs. KPIs can be based on any standard or custom salesforce objects and can be easily added for a user or a team to constantly monitor important metrics. OKRify seamlessly connects OKRs and KPIs and also provides the ability to track key results for an OKR using KPIs.
Effective use of OKRs and KPIs requires consistent communication between management and employees, tools such as OKRify can help to optimize the use of OKRs and KPIs by integrating with business processes in Salesforce. OKRify also helps management to effectively discuss progress, share feedback and identify risk or opportunities.
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OKRify brings together proven OKR methodology & KPIs to Salesforce. Execute your strategy into results.