OKR and KPI are both used to ensure employee performance. However, there are still very basic differences between the two concepts. Depending on how you set up and operate, you can choose to use OKR or KPI or both. Let's learn about these two terms and how to use them with MINSoftware.

Main Content

1. Concept of OKR and KPI

Both are terms used to evaluate a business's operating processes, however, when analyzed specifically, these two concepts have many differences.

KPI (Key Performance Indicator) is the key performance indicator. In which, Key means establishing the common goals of the business, company; Indicator is the establishment of indicators to evaluate the completion rate of the set goals.
OKR (Objective Key Result) means key result objective. In which, Objective is the goal of the company, department, individual; Key Result is the key result, answering the question How do I achieve the goal?

2. The difference between OKR and KPI

Many businesses are still confusing the two concepts because their application is to measure work. Let's compare to find out the similarities and differences.

a. Similarities between OKR and KPI

As mentioned above, OKR and KPI are both used to evaluate the level of completion and work implementation process. Therefore, they have similar characteristics such as:

Applied in large and small companies.
The aim is to help businesses achieve their goals.
Positively affects individual and business performance and productivity.
Whether OKR or KPI, it must be specific and quantifiable (Specific data).

b. The difference between OKR and KPI

If you look closely, you can see the big difference between OKR and KPI when applying to evaluate work results.

Focus

OKR focuses on O – the objective before delivering key results.

KPI focuses on I – the measurement index K – the target set out earlier.

How to apply

KPI is a tool to track your daily work.

OKR does not track your daily work. However, to complete OKR you need to stick to KPI. KPI can be adjusted daily. You can increase KPI to complete the set KR.

Mechanism

KPI: Allocated from top to bottom (from higher management down).

OKR: Linking and collaborating between departments to achieve common goals.

3. Notes when building OKR AND KPI

Whether a business applies OKR or KPl, it still needs clear goals. These goals are set based on the actual situation of the business in the most recent time to have the most feasible resources.

KPIs and OKRs can be applied simultaneously in a business to achieve different goals.
Most businesses today use KPIs, and when converting from KPIs to OKRs, a process is needed. From converting appropriate goals, creating key results to using measurement tools.

Set goals: OKR goals cannot be measured like KPIs. As businesses transform, they need to review KPIs and make appropriate changes to achieve inspiring goals.
Create key results: KPIs can provide many key results but not OKRs because the fewer key results, the easier it is to implement the results.
Use accurate measurement tools. This is where KPIs come into play. All KRs in the implementation process need KPIs to ensure results/ Flexible application to bring the best results.

A business that wants to develop cannot lack a measurement plan. Goals and aspirations are also indispensable. Therefore, the most ideal application is to combine both OKR and KPI in business development. This is the most perfect combination, bringing the highest efficiency.

The above article has given you the most objective view of the similarities and differences between OKR and KPI. Please consider carefully before choosing the performance calculation method that is suitable for your business. Any questions about Facebook account maintenance and interaction software by phone please contact page Maxphonefarm – Tool to raise accounts on real phones or join the group MINSoftware Community for advice and instructions on using the software.