OKRs Vs. KPIs: Breaking Down the Types and Differences

Have you recently checked the performance of your business and made sure whether the wanted results were achieved? Well, keeping track of your business’s achievements and measuring your scores is vital for success, so business owners usually like to use OKRs and KPIs to increase their profit and productivity.

However, people often get confused with these two acronyms and their meanings, so we will give you a short guide regarding these two metrics and serve you as a small personal dictionary. Now sharpen your pencils, sit back, and relax.

What Are the OKRs?


OKR is an acronym for Objectives and Key Results, which serves as a metric or method to define the business goals for a certain period. The key results are a measurable part of the equation, and they show the progress of the set objectives. Goals defined by OKRs are usually set for a quarter of the year. Large companies such as Google, Intel, and Amazon have made this framework so popular.

Types of OKRs

OKRs divide into two different branches which are called committed OKRs and aspirational OKRs.

  • Committed OKRs

Committed goals represent the goals that should be reached in a certain timeframe. To fulfill this type of OKR, every member of the team needs to be included and give their best.

  • Aspirational OKRs

In contrast to committed OKRs, aspirational OKRs are quite bold and much less realistic. The bar is set extremely high to encourage the team to strive higher and put more effort into their everyday work.

What Are the KPIs?

team planning

KPIs, shortened from Key Performance Indicators, represent the performance metrics whose main goal is to measure the success of different projects, products, activities, or organizations as a whole. In other words, they can measure everything within the business based on realistic, truthful, and measurable goals.

Types of KPIs

There are numerous types of Key Performance Indicators, and they include the following:

  • Quantitative KPI (measuring numbers)
  • Qualitative KPI (indicating experiences)
  • Leading KPI (predicting results)
  • Lagging KPI (assessment of results)
  • Input KPI (tracking resources and amounts)
  • Process KPI (identifying changes)
  • Output KPI (indicating the success or failure)
  • Practical KPI (evaluating existing processes)
  • Directional KPI (evaluating specific trends)
  • Actionable KPI (measuring a company’s effectiveness)

Main Differences Between OKRs And KPIs

1. Measuring Capabilities

First and foremost, OKRs and KPIs highly differ in their measurability. OKRs are objectives that measure the results which are not always stated in numbers. KPIs, nonetheless, represent metrics that show you the success and health of the business and usually come in numbers.

2. Purpose

The purposes and nature of OKRs and KIPs are completely different. OKRs are reasonable objectives that a company should strive to achieve, while KPIs are more ambitious goals that should motivate employees to work smarter.

3. Duration

OKRs serve primarily as a set goal for the company that should be achieved within a chosen timeframe, while KIPs do not have an expiry date and are measured constantly.


Hopefully, we have finally cleared out the whole fuss about the OKRs and KIPs. Now is the right time to implement them into your business and set new objectives and goals for 2023!