OKRs vs. KPIs: Understand the Difference To Define Success

When I talk with leaders about alignment and execution, one question always surfaces:
“What’s the difference between OKRs and KPIs—and do we need both?”

It’s a simple question with deep implications. In OKRs for All, I wrote that OKRs are not a reporting system—they’re a change system. They help teams focus on what matters most, align around impact, and move the organization forward.

KPIs, on the other hand, are a measurement system. They track ongoing performance, but they don’t create change on their own.

KPIs: Measuring the Present

KPIs—Key Performance Indicators—are your organization’s health metrics. They help you monitor whether the systems you’ve built are performing as expected.

Examples include:

• Customer retention rate

• Uptime or latency

• Quarterly revenue

• CSAT or NPS

If a KPI drops, it’s a signal that something’s wrong. But KPIs don’t tell you what to do about it.

In OKRs for All, I describe KPIs as “measures of what is.” They are essential for visibility, but they live in the present tense—they tell you how you’re doing, not where to go next.

OKRs: Moving Toward the Future

OKRs—Objectives and Key Results—are the opposite: they’re about driving intentional change.

• Objectives capture the why—what we want to achieve and why it matters.

• Key Results capture the what—how we’ll measure progress toward that outcome.

OKRs answer the question:

“What must we focus on now to create the future we want?”

For example:

• Objective: Deliver an exceptional onboarding experience for new customers.

• Key Results:

  • Increase onboarding NPS from 45 to 70.

  • Reduce time-to-value from 10 days to 3 days.

  • Launch new self-serve onboarding by Q2.

Notice that OKRs are outcome-oriented, not task-oriented. They push teams to stretch, innovate, and prioritize.

As I wrote in OKRs for All, OKRs exist to align ambition with action—to make change visible and measurable.

The Two Systems, Side by Side

Here’s a simple way to think about them:

The most successful organizations don’t confuse these systems. They maintain KPIs to monitor ongoing health—but they use OKRs to focus the organization on progress.

Why This Distinction Matters

When companies confuse KPIs for OKRs, two things happen:

1. They track everything but change nothing. Endless dashboards, little direction.

2. They lose focus. Teams measure performance without knowing what truly matters right now.

OKRs bring back that focus. They force the hard conversations about priorities, tradeoffs, and alignment.

In OKRs for All, I call this “creating a rhythm of focus”—a steady cadence where teams revisit, review, and refine their goals. This rhythm transforms OKRs from a quarterly exercise into an organizational heartbeat.

A Closing Thought

KPIs keep you steady.
OKRs move you forward.

Both have their place—but only OKRs turn measurement into momentum.

If your organization is ready to build a culture of clarity, ownership, and aligned progress, it starts with embracing that difference.

👉 Ready to bring OKRs to life in your organization? Get a Demo of Rhythms →