OKRs set ambitious, time-bounded goals. KPIs track ongoing performance. They can work together.
Last updated: 2026-04-01
A goal-setting framework. An objective is a qualitative description of what you want to achieve. Key results are 2 to 5 measurable outcomes that show progress toward it. Developed by Andy Grove at Intel and popularized by John Doerr at Google. What Matters distinguishes committed and aspirational OKRs.
Best for setting direction. OKRs are the right tool when you want to align a team around bold change over a quarter or year.
A measurement system. KPIs are quantitative metrics that track the ongoing health and performance of the business. NPS, monthly churn, average response time, gross margin, MRR. KPIs reflect the steady state.
Best for monitoring. KPIs are the right tool when you want to know whether the business is operating well day to day.
Objective: qualitative direction. Key Results: 2-5 measurable outcomes (e.g. NPS from 35 to 45 by Q3).OKRs reset quarterly or annually. State whether each target is a commitment or an aspiration, and define how to measure progress.
No formula. A KPI is a metric you watch continuously, with target ranges or thresholds.Review KPI definitions and targets as the business changes. Keep comparisons consistent when you change them.
| Criteria | OKRs | KPIs |
|---|---|---|
| What it is | Goal-setting framework | Measurement system |
| Time horizon | Quarterly or annual. Reset | Continuous. Always on |
| Origin | Andy Grove at Intel; brought to Google by John Doerr | Long history in operations and finance |
| Best for | Driving deliberate change | Monitoring steady-state health |
| Format | Objective + 2-5 key results | A metric with a target or range |
| Who reads it | Whole team (often public) | Operations, leadership, on-call |
| Failure mode | Sandbagging or over-tracking | Too many to read, optimized in isolation |
| Used together | OKRs target a change in a KPI | KPIs measure whether OKRs are working |
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Pros
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An OKR sets an objective and measurable results to achieve by a date. A KPI tracks an important part of ongoing performance. Both can change as business priorities change.
Yes. A key result can set a time-bound target for a KPI, such as moving NPS from 35 to 45 by Q3. The KPI can continue to be tracked after that goal period ends.
Choose a small set the team can focus on. Two to four objectives with two to five key results each is one planning starting point, not a requirement. One focused objective may be enough.
Track the measures needed to make decisions and spot problems. Growth, retention, engagement, quality, and finance are useful areas to consider, but there is no universal minimum or maximum count.
OKRs build on Management by Objectives. Andy Grove developed the approach at Intel, and John Doerr helped popularize it at Google. The useful distinction here is the explicit pairing of an objective with measurable key results.
Check the definitions and whether the conflict reflects a real tradeoff. A growth goal might put pressure on a quality metric. Agree guardrails and priorities rather than assuming either the goal or the KPI must be wrong.