What are the differences between OKRs and KPIs? How do OKRs and KPIs complement each other?

The image below shows the differences between OKRs and KPIs.


High-growth organizations keep a hawk’s eye on results, leveraging OKRs and KPIs to produce the best business outcomes. While KPIs monitor performance, identify issues, and improve areas, OKRs help resolve the issues, simplify processes, and drive innovation.

Let us take an example to understand this better.

Suppose your marketing team has a 7% overall website conversion rate baseline KPI. If the website conversion rate falls below 7%, the marketing team may face a challenging conversation regarding their performance on meeting the baseline metric, which is 7% here. Teams more aware and aligned to their business growth goals would already focus on improving the website conversion rate over the period.

To learn how to make OKRs and KPIs work together, check this out.

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