KPIs

OKRs Vs. KPIs: Are Both Required?

More and more companies are shifting from traditional approaches such as key performance indicators (KPIs) to objectives and key results (OKRs) in today’s dynamic business world. You might be curious about how different KPIs are from OKRs as both serve as effective performance management tools. In this article at The Enterprisers Project, Kevin Casey explains how leaders can break down the differences between the two performance management tools.

What is the Difference?

When it comes to managing your business, merely identifying great KPIs is not enough. Every company has a plan and a budget for each project. These plans and budgets are typically based on KPI projections. That means they are based on what the company achieved in the past and what they target to achieve this year. This is where OKRs play a significant role. OKRs focus on the broader picture of the company’s vision, goals, culture, and purpose. They serve as a powerful performance enhancement tool to improve overall business outcomes.

Which One is Better?

When evaluating whether to use OKRs or KPIs, you must analyze the business and what you are looking to measure. For example, if you are looking to enhance a plan or project that was executed before, KPIs might be the better option. This is because they allow you to add a measurement system to your ongoing processes or project.

On the other hand, if you have a larger vision or want to change the overall direction, OKRs is undoubtedly the better alternative. They will allow you to stretch your goals further and be a bit more creative on how you plan to reach those goals.

In a nutshell, both KPIs and OKRs are effective strategies to evaluate employee and business performance. As a result, various organizations use KPIs and OKRs to yield the best outcomes while improving employee productivity, engagement, and overall performance. To read the original article, click on https://enterprisersproject.com/article/2021/4/okrs-vs-kpis-what-s-difference.

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