OKRs vs KPIs
When it comes to setting and measuring goals, many different acronyms and terms get thrown around, but what do they all actually mean? This article focuses on breaking down the difference between OKRs vs. KPIs to better understand which is right for your enterprise.
What are OKRs?
In business, the term OKR stands for Objectives and Key Results. An OKR system is a framework or methodology that helps enterprises set goals and track progress towards specific objectives through measurable and verifiable results.
Objectives are qualitative, inspirational, and time-bound. The key results help quantify the objectives with specific metrics that can be verified and measured.
What are KPIs?
KPIs, or Key Performance Indicators, are a type of metric businesses use to track and measure progress. They are typically used to evaluate whether or not an enterprise is meeting its goals and objectives.
There is a variety of different KPIs that businesses can track, but some common ones include things like revenue, customer satisfaction, and employee productivity. Companies use KPIs to track progress frequently. KPIs can also be used to compare performance across different departments or periods. Additionally, KPIs can help businesses identify areas that need improvement. Overall, KPIs are a helpful tool for companies to use when trying to gauge performance and progress.
Differences between OKRs and KPIs
OKRs and KPIs have their differences; the former being externally focused while the latter is internally focused. Furthermore, OKRs tend to be more qualitative in nature, while KPIs are more quantitative. Finally, OKRs are typically set at the organizational level, while KPIs are usually set at the departmental or team level.
The term “objective-key performance indicator” (OKR) is often used as a synonym for key performance indicator (KPI), but there is a difference between the two terms. An OKR is a statement about what an individual or team wants to achieve, whereas a KPI measures a particular performance. For example, an OKR might be “increase sales by 20% in the next quarter.” A KPI might be “the sales of Product X increased by 20% in quarter Q3.”
The world of performance management is changing rapidly. New tools, frameworks, and metrics are being introduced, and old standards are being revamped. One such change is moving away from traditional Key Performance Indicators (KPIs) toward a more holistic, user-friendly approach known as Operational Key Results (OKRs).
A goal is a number that shows how close you are to reaching your business’s objective. Most companies use a set of predetermined KPIs — such as revenue or number of customers — to measure performance. Some companies also use OKRs — objectives defined by the CEO — to measure performance. Which one you choose depends on your company’s goals and culture, but often one or the other is used across the organization.
Motivating and Engaging Employees with OKRs
OKRs are more than a label, but a whole philosophy about how to set goals. Some objectives include improving communication, collaborating on projects, and ensuring the user experience is seamless and intuitive. Each of these goals is a performance objective. So instead of simply saying, “Build the best product possible,” you have an OKR that focuses on the specific means of accomplishing that goal. This shift from an abstract goal to an OKR focuses on the details of how.
OKRs are a way to motivate employees, align the company’s objectives, and improve performance. The idea is to set a few broad targets (or “Objectives”) for the company that would guide decision-making and then set a series of “Key Results” (KRs) that would help the company achieve these objectives. The KRs are then broken down into smaller and smaller “Quantitative Key Results” (QKRs) that are measurable goals. OKRs are focused on the outcomes and results we want to achieve rather than the activities we should take to get there. This makes them a powerful tool for sharing and aligning a team’s goals, which is why they fit so well with a company’s culture. They also give managers a tool for tracking the progress of their teams and the company as a whole.
The Importance of Measuring your Performance
Regardless of which methodology you choose, the key takeaway is that the only way to improve is to measure and review the performance of your enterprise. You miss out on opportunities to learn and improve if you are not setting objectives or taking the time to review them once they are set. Both failures and successes offer opportunities for growth and learning, which is why it should be a top priority to implement performance metrics using OKRs, KPIs, or both simultaneously.
Conclusion
OKRs and KPIs are two different ways of measuring progress and determining whether or not an enterprise is on track to reach its goals. It doesn’t have to be one or the other, and it depends more on the unique needs of your enterprise, but working towards a common goal through measurable metrics is the best way forward and into the future.
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FAQs
My requirements are unique. Do you have a custom plan?
We understand that every company is unique. We would like to hear more about your requirement. Talk to our sales team today! (Talk to sales team )
What are the different plans available for Synergita OKR?
OKR customers can select from the following two options:
- Free Edition / OKR Starter: Free Edition allows 2 Company Objectives, 5 Team Objectives, and 20 Individual Objectives with upto 10 Users.
- Paid Edition / OKR Growth –This edition comes with unlimited users and unlimited OKRs.
How is the pricing calculated?
Synergita OKR is priced based on the number of OKR users. You may have 200 employees in your organization and only 60 people may use OKR. In that case, Synergita will charge you only for 60 employees who are enrolled for OKR.
Do you have monthly payment plan?
Of course. We have monthly plans. Talk to sales team to get discounts on annual plans
If I decide to discontinue, do you offer refund?
Synergita requires annual contract for the first year and later to that, you can discontinue by providing 90 days notice period. From the 2nd year onwards, if you have paid annual payment and would like to discontinue, you will get a refund. Please refer our Terms of Services
Do you offer implementation services?
Synergita OKR is very easy to implement. You can easily configure the OKR module. We have also provided detailed “how to” configuration steps as a part of our knowledgebase. Our support team can also help you in configuring OKR based on your requirements.
Yes, our customers get access to phone, email, chat support. In addition, we have knowledge base and can be accessed from the product. For OKR Free edition, only email support is provided.
What happens to my data once I decide to end the subscription?
All data is yours. You can download all the reports & relevant data in excel format from your instance.
How do I make payments for using Synergita OKR
Currently, payment processing is done off-line. Our sales team will work with you to sign up the subscription form. Synergita Accounts team will send the invoices and you can make payments through bank transfer or through credit card payment.
