Confused by OKRs and KPIs? Which do you prioritise?

Understanding the difference between Objectives and Key Results (OKRs) and Key Performance Indicators (KPIs) when setting business targets is especially important for early stage enterprises.

Objectives and Key Results form a framework designed to drive the business forward.

OKRs are defined targets whereas KPIs measure progress towards achieving them.

The distinction between the two becomes clear when considering their underlying focus. OKRs focus on growth, defining what the business seeks to achieve.

KPIs track how well the business is performing over time, whereas OKRs are time-bound.

For startups and early stage businesses, pursuing OKRs as the primary framework offers the best strategic advantage. Providing focus towards achieving key milestones.

Whilst the business model is still evolving, a simple approach may involve selecting two or three key KPIs to ensure steady progress, while setting quarterly OKRs to achieve strategic goals. Potentially expanding into a full set of operational KPIs and longer term OKRs as the business matures and management processes become established and stable.

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