Learn How Strategic KPIs Differ from Operational KPIs

While organizations generally use KPIs to check alignment with strategic goals, operational KPIs are also in vogue nowadays. As you can understand, KPIs used for strategic purposes are quite different from those used for functional goals. In his blog article, Bernard Marr clarifies how the strategic KPIs differ from the operational KPIs.

KPIs: Strategic vs. Operational

Operational KPIs provide visibility into the operational achievements of your internal processes, systems, and resources. Their purpose differs from the strategic ones to understand the growth factor of a company. However, both operational KPIs and strategic KPIs must be linked to each other to help the overall progress of the organization.

Operational KPIs, along with their strategic counterparts, give you the real picture of where the organization stands as compared to its competitors. Let us find out below what the real difference is between strategic KPIs and operational key performance indicators:

Purpose of Operational KPIs: These KPIs are getting closer to producing real-time analysis. Thanks to emerging technologies like AI and ML integration in various organizational tools, you do not have to monitor every sphere manually. The KPIs help you to see how your business is doing daily, weekly, monthly, quarterly, and yearly. You can discover systems and processes that are preventing your employees from giving their best performance. Early detection allows you to identify impending risks that might become issues later. However, you do not need to monitor real-time operational performance.

Purpose of Strategic KPIs: Unlike operational KPIs, strategic KPIs do not need measurement every other day. Those are to help you understand a growth pattern that is in favor of your organizational development. Remember not to bring too many changes to these objectives nor their KPIs. You need to allow a significant amount of time to get a proper analysis of the situation.

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