OKRs and KPIs - A Quick Primer

Many resources discuss setting goals for organisations, and a key distinction lies between Objectives and Key Results (OKRs) and Key Performance Indicators (KPIs). To understand the difference, let's use a helpful analogy borrowed from Perdoo:

Imagine your car's dashboard. It shows vital information like engine temperature, fuel level, and tyre pressure – all crucial for a safe journey. These are your KPIs. However, the dashboard doesn't tell you where to go. That's where your mission and vision come in – you have to choose your own destination.

OKRs, on the other hand, function like a roadmap. They guide you towards your chosen destination. OKRs might involve preparing your car (servicing, refueling) before the trip, but they also act as milestones along the way. They break down long journeys into achievable objectives, making progress feel manageable.

Unlike KPIs, these milestones are temporary. Once achieved, you focus on the next one, keeping you moving towards your ultimate goal.