An OKR vs. KPI comparison is a bit like comparing a fruit salad with an orange, they both contain fruit, but one is a combination that contains the other. In other words, OKR and KPI work perfectly together. You’ll need both.
KPIs is linked with tech and marketing whereas OKRs is associated with search engine organization (Google).
The objective is qualitative and answers the question, “What do we want or need to achieve?”
KR = Key Result
OKR stands for Objective & Key Result. Simply put, an Objective tells you where to go, and a Key Result will let you know whether you’re there or not.
OKR provides the missing link between ambition and reality. If you have a big dream for your company, you need OKRs which symbolize ambition.
K= Key and therefore should be tied to something strategically important (like an objective).
PI= Performance Indicator which shows the progress towards achieving the objective (like a KR).
KPI stands for Key Performance Indicator. A KPI measures the success, the output, quantity or quality of an ongoing process or activity. They measure processes or activities already in place.
Difference between KPIs and OKRs:-
One of the key differences between OKRs and KPIs is the intention behind the goal setting. KPI goals are typically obtainable and represent the output of a process or project already in place, while OKR goals are somewhat more aggressive and ambitious.
A KPI is only the measurement component of a planning and execution process, whereas OKRs are intended to be an overall goal management system.
Which one is better?
For example, if you’re looking to scale or improve upon a plan or project that’s been done before, KPIs might be the better option. They’re straightforward and allow you to add a measurement system to your ongoing projects and processes.
However, if you have a larger vision or are looking to change your overall direction, OKRs might be the better alternative. They have greater depth that will allow you to stretch your goals even further and allow you to be a bit more creative on how you plan to reach those goals.