A picture is worth a thousand words: OKRs vs. KPIs vs. Metrics.

When comparing OKRs and KPIs, many forget a critical aspect: the relationship between them.

In short, Key Results in an OKR always refer to quantitative metrics, some of which might be KPIs.

Here is everything you need to know:

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1. What are OKRs?

OKR stands for “Objectives and Key Results.” The 2 components:

• Objective (Why, What, When): A qualitative, inspirational, time-bound goal for a team to focus on. Typically set quarterly.

• Key Results (How much): Quantitative metrics (typically three) that monitor progress towards the Objective.

OKRs are about:

• Setting a single, inspiring goal.

• Empowering a team to determine the optimal way to achieve it.

• Continuously monitoring the progress, learning from failures, and improving.

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2. What are metrics?

Metrics are all the things you can measure. In particular:

• Qualitative metrics are unstructured and anecdotal.

• Quantitative metrics are the numbers.

In the context of OKRs and Key Results, we always use quantitative metrics.

For more information about different types of metrics, see a free post: productcompass.pm/p/are…

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3. What are KPIs?

KPIs (Key Performance Indicators) are a few key quantitative metrics that a company focuses on and typically tracks over a longer period of time.

You can use them in your Key Results, as health metrics (a balancing practice for OKRs), or set Key Results for one of a KPI’s input metrics.

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4. North Star Metric vs. KPIs

North Star Metric is a single KPI. It is customer-centric, represents the value customers get from the product, and is a leading indicator of a business’s success.

For more information, download The North Star Framework 101 (13 pages, PDF): theproductcompass.tech/…

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Hope that helps.

What are your thoughts?

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P.S. You can also download 30 high-res infographics and get 600+ free PM learning resources (welcome email) by subscribing here: theproductcompass.tech/…