OKRs vs KPIs: use both, for different jobs

The debate between KPIs and OKRs is mostly a false choice. They answer different questions, and strong organisations use both.

KPIs tell you how the business is running

Key performance indicators are continuous measures of health: revenue growth, on-time delivery, employee retention. They are measured at a fixed frequency against a target, and they should be SMART — specific, measurable, achievable, relevant and time-bound.

OKRs tell you what you are changing

Objectives and key results describe an ambitious change over a period: “win the UAE market” with key results such as “40 meetings with key accounts”. They are temporary by design.

A simple rule

• If you would measure it every month forever, it is a KPI.
• If you would stop measuring it once you succeed, it is a key result.

Bringing them together

Link both to the same objectives so leaders see one picture. Let employees propose their own OKRs and have managers approve them — ownership improves when people write their own goals.