Accelerate the effectiveness In the business battlefield, the line between success and failure is as thin as a thin thread, businesses are constantly looking for the most optimal methods to evaluate and promote work performance for their employees. Looking back at the development of the Sales and Marketing industry, from the days of simply measuring sales and the number of customers reached, to now, metrics have become much more complex and multidimensional.
KPI or OKR are tools that are widely
Today in many businesses of different sizes and types. However, it seems that using them alone is not enough for the increasingly expanding ambitions of businesses.
So what are KPI and OKR and how to combine KPI and OKR in a harmonious and effective way, especially in the Sales and Marketing environment – where the pressure of numbers and creativity must go hand in hand? This article will help you discover how to leverage the power of both tools, turning them from separate management tools into a synchronized system, boosting performance and creating significant improvements in business results.
What are KPI and OKR? Differences and similarities between them
KPI (Key Performance Indicator) is an index of work performance, often used to evaluate the performance of a position, department or the entire company. Each position usually has a job description or monthly work plan, and KPI is used to quantify work performance based on pre-agreed criteria. Based on KPI results, the company can apply reward or discipline policies for individuals and groups.
What is OKR? OKR (Objectives and Key Results) is a method of managing objectives
Useto set goals for the entire organization. OKR consists of two parts: Objectives (Objectives) are what you want to achieve, and Key Results (Key Results) are quantitative c level contact list measures that show how you have achieved the objectives. OKR helps to align and create participation of the entire organization around measurable goals.
Similarities between KPI and OKR
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Both KPIs and OKRs are tools used to measure performance.
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Both aim to improve individual how to innovate and deal with ream resistance departmental and company performance.
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These metrics all use specific data to track and evaluate performance.
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KPIs and OKRs are both used to boost employee motivation.
The difference between OKR and KPI
| KPI | OKR | |
| Purpose | – Evaluate past performance | – Drive future performance |
| Nature | – Aim for achievable goals, consistently achieve 100% | – Aim for challenging, ambitious goals, not necessarily achieving 100% |
| Salary and bonus | – Usually associated with salary and bonus | – Not directly linked to salary and bonus |
| Approach | – Look back to the past to evaluate an individual’s performance | – Focus on the present and the future, considering whether and how we will achieve our goals |
| Quantity | – Unlimited number of KPIs | – Includes 1 Objective (qualitative) and 3-5 Key Results (quantitative) |
I will give a more specific example of KPI and OKR for readers to visualize:
KPIs are usually indicators such as: Conversion rate, customer retention rate, revenue, profit, etc. On the other hand, OKRs are broader and more strategic indicators such as: “Successfully european union phone number launchin the next 90 days”; KR1: Achieve 1,000 average daily visits. KR2: Satisfaction rate of 90%. KR3: Conversion rate of 30%.