Why does a PM always talk about OKRs & KPIs? π
Most teams/orgs have a certain set of KPIs and OKRs that drives their businessπ
Even though both the terms are often used interchangeably but they are quite different. Let's demystify them & understand what do they mean π§
Most teams/orgs have a certain set of KPIs and OKRs that drives their businessπ
Even though both the terms are often used interchangeably but they are quite different. Let's demystify them & understand what do they mean π§
π OKRs or "Objective Key Results" are a set of goals that help a team/org to focus on key activities which will bring in the desired outcome.
πKPIs or "Key Performance Indicators" are a specific set of metrics that evaluate the performance of a specific team or initiative.
πKPIs or "Key Performance Indicators" are a specific set of metrics that evaluate the performance of a specific team or initiative.
For example, your OKR is to get a pole position in an F1 race. π
Your KPI in this case would be your speed, fastest lap, tyre condition etc. Optimizing your "KPIs" will lead to you achieve your "OKRs" π―
Your KPI in this case would be your speed, fastest lap, tyre condition etc. Optimizing your "KPIs" will lead to you achieve your "OKRs" π―
β¨OKRs are mostly "qualitative" in nature whereas KPIs are mostly "quantitative" in nature.
β¨The core difference is that KPIs are metrics that are mostly related to your daily business functions while OKRs on the other hand are more from a future standpoint.
β¨The core difference is that KPIs are metrics that are mostly related to your daily business functions while OKRs on the other hand are more from a future standpoint.
The benefits of having OKRs & KPIs is as follows:
π OKRs help you achieve better business impact
π OKRs help you build a culture of goal management & instils accountability in an org
π KPIs help you understand which activities are low RoI & if you should de-prioritize them
π OKRs help you achieve better business impact
π OKRs help you build a culture of goal management & instils accountability in an org
π KPIs help you understand which activities are low RoI & if you should de-prioritize them
The right of kind of OKRs should be
βAligned with your product/org motives & should be well-defined
β Time-bound & high impact
β Outcome-based rather than output-based
β Example: OKR to give the best-in-class user onboarding experience to your customers
βAligned with your product/org motives & should be well-defined
β Time-bound & high impact
β Outcome-based rather than output-based
β Example: OKR to give the best-in-class user onboarding experience to your customers
When it comes to KPIs the focus should be on these points:
π₯ A metric that needs to be measured + current value of the metric + target value of the metric
π₯ Example: Decrease CAC by 10%, Increase retention by 20% or increase your uptime to 99%
π₯ A metric that needs to be measured + current value of the metric + target value of the metric
π₯ Example: Decrease CAC by 10%, Increase retention by 20% or increase your uptime to 99%
Having the ability to pick out core KPIs which have a major business impact can be a game-changer. π―
What is interesting to note here is that even though OKRs and KPIs are quite different they complement each other when it comes to building your company's strategy π
What is interesting to note here is that even though OKRs and KPIs are quite different they complement each other when it comes to building your company's strategy π
β’ β’ β’
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