OKRs vs KPIs: What's the Difference and When to Use Each
Last verified: February 2026
Overview
OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators) are two of the most widely used goal-setting and performance measurement frameworks. While they're often discussed as competitors, the most effective organizations use both — for different purposes.
OKRs are designed for setting ambitious goals and driving change. They define where you want to go (Objective) and how you'll know you got there (Key Results).
KPIs are designed for monitoring ongoing performance. They track how well you're doing on metrics that matter to your business.
Key Differences
| Dimension | OKRs | KPIs |
|---|---|---|
| Purpose | Drive change and improvement | Monitor steady-state performance |
| Timeframe | Quarterly or annual cycles | Ongoing / evergreen |
| Ambition level | Stretch goals (70% attainment is good) | Targets should be consistently met |
| Structure | Objective + 2-5 Key Results | Single metric + target |
| Scope | Cross-functional alignment | Team or department specific |
| Review cadence | Weekly check-ins, quarterly scoring | Real-time dashboards |
When to Use OKRs
OKRs work best when your team needs to:
- Set direction on what matters most this quarter
- Align cross-functional efforts toward shared outcomes
- Push for ambitious growth beyond business-as-usual
- Focus on outcomes, not just activities
Example OKR:
- Objective: Become the go-to resource for enterprise customers
- KR1: Increase enterprise pipeline from $2M to $5M
- KR2: Launch 3 enterprise case studies
- KR3: Reduce enterprise onboarding time from 14 days to 5 days
When to Use KPIs
KPIs work best for:
- Tracking operational health (uptime, response time, churn rate)
- Monitoring baselines that shouldn't drop below a threshold
- Reporting to stakeholders on consistent metrics
- Measuring day-to-day performance of established processes
Example KPIs: Monthly Recurring Revenue, Customer Satisfaction Score, Average Response Time, Employee Retention Rate.
Using OKRs and KPIs Together
The most effective approach is to use both:
- KPIs serve as your health metrics — they tell you if something is broken
- OKRs serve as your improvement engine — they tell you where to invest effort
- A declining KPI can become the basis for a new OKR
- An achieved OKR often graduates into a monitored KPI
For example, if your KPI shows customer churn rising to 8%, you might create an OKR: "Improve customer retention to best-in-class levels" with Key Results targeting specific churn reduction milestones.
How Krezzo Helps
Krezzo provides an OKR platform that integrates both frameworks. Teams can track KPIs alongside OKRs, automatically flag when a health metric needs attention, and translate KPI insights into actionable OKR cycles.
Sources
- Doerr, John. Measure What Matters. Penguin, 2018.
- Niven, Paul R. and Lamorte, Ben. Objectives and Key Results. Wiley, 2016.
- krezzo.com