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OKR vs. KPI: Why does your company need performant strategies for measuring productivity and results

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OKR vs. KPI: Measuring Success

How do successful companies accomplish their short and long-term goals? The answer stays in OKRs and KPIs! Pursuing your company's success means that you have to understand how fundamental it is to measure performance. OKR tracking software, for example, is essential in the business world, measuring key results and objectives. Would you like to learn how to use these tools to take the success path for your company? Keep on reading!


  1. KPI vs. OKR - What is the difference between OKR and KPI?
  2. KPI and OKR - Why you should choose OKR

KPI vs. OKR - What is the difference between OKR and KPI?

If you are an expert in performance marketing, you’re most likely already familiar with the terms OKR and KPI. If not, don’t worry, Mirro has all the answers you need! These two strategies can look similar because their ultimate goal is to measure and establish short- and long-term planning for your company's success.

An easy way to understand the differences between OKRs and KPIs is to picture a simple scene from day-to-day life: for example, you want to achieve some personal goals, such as spending time with your family or going on a trip, but cooking or grocery shopping takes so much of your time, that your objectives cannot be met; so, to fulfil your needs, you have to make a plan and be efficient with your time and life purposes. 

Each employer has set professional goals they would like to achieve, and the opportunity to do so from their position is a fundamental element of satisfaction in this regard. Organizations benefit when team members have clear objectives, as this helps meet the company's overall goals. Colleagues who see a future in the company and feel supported in their professional efforts by the organization they work for are more likely to stay in the company and evolve with it. And for this, the OKR and KPI techniques are the best options.

What is the OKR technique? 

OKR is an acronym for Objectives and Key Results and is a popular management strategy regarding a company’s objectives. The technique was developed in the 1980s by Andy Grove, former CEO of Intel. OKR is a bold strategy that implies understanding the company's goals through a set of specific and measurable actions for each team member of the organization. How does it work? It starts by setting a goal!

OKR has two basic elements to start with:

  • Objectives. In this stage, the objectives of the company are identified and implemented. Although the goals should be ambitious, they must also be smart and reachable. 
  • Results. The results must be quantifiable, achievable, and even difficult, but not impossible to succeed. With their help, you can track the progress of the team and the staff and understand the obstacles, so your company can develop and improve.

What is a KPI? 

Once the objectives have been set, indicators are needed to measure progress. So, that's what KPIs do - they show the status of the company’s goals. A good KPI is knowing what to do when it changes. Typically, a KPI is expressed in percentages or averages and has to answer the question “Why?”. Therefore, KPIs start with setting goals - so the objectives (OKRs) are translated into indicators (KPIs). 

In short, a KPI must be essential, actionable, and divisible, often a temporary strategy. 

Can OKR and KPI work together? 

Of course, KPIs and OKRs can work well together! For example, if KPI results show that sales are dropping, the company may implement a bold OKR based on the key results of an existing KPI. This combination can help the company stay focused on improving its marketing strategies, profits, or any other aspect that can help it develop and be successful.

2. KPI and OKR - Why you should choose OKR

The OKR methodology was adopted by Google in 1999 and has proven to be fundamental in the success of this company. To date, every level and every department of the company continues to use OKR, which seems to have a major impact on the fact that Google is one of the top companies. 

The OKR methodology promoted by Mirro provides objectives that are set at a company level and aligned with both individual and team goals. When each team member has a clear understanding of their own purpose and how they can help others achieve their objectives, group projects can function more effectively.

So, here are the reasons why OKRs are the best choice for your company:

  • Short-term objectives. One of the most important features of OKR that separate it from other goal-setting methodologies, such as MBO (Management By Objectives), is the duration for which goals are set. OKR recommends that targets be set monthly or quarterly, depending on the company’s current needs. Therefore, team members will be more productive and can also bring visible results more often.
  • Focusing on constant improvement. Managers and team members review OKR results on a weekly basis to track progress and also identify the difficulties that may prevent goal achievement. This routine helps to keep everyone's attention on the main objectives, as well as ensuring that they can get help whenever they need it. The OKR methodology also recommends setting ambitious targets - if the goals seem too easy, they probably require adjustment and a much more ambitious performance management plan.
  • Adaptability. OKRs are designed to help individuals and teams contribute to the company's vision, but there are some situations in which one or more objectives no longer correspond to the company's short-term goals. In such cases, the OKRs may be modified or removed with new ones that are more appropriate to the current situation. As it is the case of every ambitious project, not all conditions remain constant. Some tasks that may seem important at first are no longer needed due to a change of perspective. Here at Mirro, we can change the tasks at any time and add new ones when needed at any project stage, thus saving valuable time.

OKRs and KPIs together can work very well. However, since OKRs describe a bold, long-term goal, KPIs are influenced by these metrics. Therefore, to have a successful business, you should focus on the OKR - it focuses on constant improvement so that it can be flexible and achievable. For more details, see the subscription plans offered by Mirro!

Photo sources: Shutterstock.com, Pexels.com;


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