Both use numbers, both get put on slides, and both are often confused for each other. But they answer two different questions. One tells you whether things are healthy. The other tells you where you are trying to go. About 7 minutes to read.
Picture a long drive from Singapore to Penang. You need two very different things in the car.
KPIs keep the lights on. OKRs move you somewhere new.
"Are we healthy?"
"What are we changing?"
| KPI | OKR | |
|---|---|---|
| Purpose | Monitor performance | Drive improvement |
| Time frame | Ongoing | A fixed cycle, often 3 months |
| Target | Stay inside a healthy range | Reach a stretch target, from a known baseline |
| How many | As many as you need to run the business | Few: 1 to 3 objectives per team |
| Success looks like | "Nothing to see here" | "We are not where we were" |
| Hitting 70% | Usually a problem | Usually a good result for a stretch goal |
| Example | Website uptime stays above 99.9% | Objective: make checkout effortless. KR: cut checkout drop-off from 40% to 25% |
OKRs and KPIs are not rivals. They hand work to each other in a loop.
Health metrics belong next to OKRs. When you push hard on one number, others can quietly suffer. Teams often list a few KPIs as "guardrails" beside their OKRs: "grow sign-ups, while keeping refund rate under 3%".
An online shop's customer support team, this quarter.
Two are fine and need no project. CSAT has slipped for two months, so it needs focused work.
Objective: Customers leave every conversation feeling looked after.
If it works, CSAT goes back on the dashboard with a new threshold of 85%.
Not sure what CSAT is? The OKR cheat sheet explains it, along with NPS.