Are you setting goals effectively, or could current method be hindering business growth?

What is the difference between OKRs and KPIs, and how can you use both to achieve targets?

Many companies are seeing improved results by using structured goal-setting frameworks. In 2025, you can achieve even more by combining Objectives and Key Results (OKRs) with Key Performance Indicators (KPIs). Understanding their distinct strengths can lead to better outcomes. This guide breaks down what OKRs and KPIs are, how they differ, and how to use them together for business and personal growth.

Understanding OKRs (Objectives & Key Results)

OKRs are a framework for setting ambitious goals. The concept was created by Andy Grove and made popular by John Doerr. An OKR consists of an Objective, which is what you want to achieve, and several Key Results, which are the measurable outcomes that show you have reached your objective.

When to Use OKRs

• For setting and tracking ambitious goals
• In periods of growth or change

Best Practices

• Set challenging and qualitative objectives.
• Define three to five specific Key Results for each Objective.
• Review and update your progress quarterly.

Examples of OKRs

Business OKR:

• Objective: Boost market presence by year-end.
• Key Results:
  1. Grow revenue by 40%.
  2. Launch 3 new products.
  3. Add 2 new markets.
  4. Increase social media engagement by 50%.

Personal OKR:

• Objective: Grow personal brand in 6 months.
• Key Results:
  1. Increase followers by 60%.
  2. Post content 4 times per week.
  3. Speak at 2 industry events.
  4. Collaborate with 3 key influencers in my field.

Understanding KPIs (Key Performance Indicators)

KPIs are metrics used to evaluate success and monitor ongoing performance. Think of them as a compass that keeps you on track by measuring your health in key areas.

When to Use KPIs

• For ongoing performance monitoring
• To measure key results

Best Practices

• Choose metrics that are relevant and measurable.
• Align KPIs with your goals and objectives.
• Review and adjust them on a regular basis.

Examples of KPIs

Business KPIs:

• Revenue growth rate
• Net profit margin
• Employee turnover rate
• Customer acquisition cost (CAC)
• Net promoter score
• Inventory turnover
• Return on investment

Personal KPIs:

• Hours spent on personal development activities
• Work-life balance score
• Personal savings rate
• Number of books read
• Daily productive hours
• Stress level assessment
• Number of workout sessions completed

Combining OKRs and KPIs for Better Results

While OKRs and KPIs are different, they work best when used together. OKRs help you set ambitious goals to drive change, while KPIs help you monitor your day-to-day performance and overall business health.

You can think of it this way:

• OKRs are for pushing new, audacious goals forward. They are ideal for when you want to grow or change direction.
• KPIs are for tracking your ongoing success. A KPI can even become one of your Key Results within an OKR framework.

For instance, if your business-as-usual KPI for “revenue growth rate” is 10%, you might set an ambitious OKR to push that growth to 40% in one quarter. The OKR drives the major push, while the KPI continues to measure the health of your revenue stream over the long term. This approach is effective for both small teams and large corporations.

Conclusion

To redefine your success in the coming year, start by choosing what aligns with your goals. Use OKRs to set clear and challenging objectives that drive better outcomes. Use KPIs to track your performance and sharpen your execution. Implement these frameworks with agility and adapt as you go. By leveraging both, you can create a powerful system for growth.

Have you ever used OKRs or KPIs?