TL;DR: OKRs set the direction for change and focus effort, while KPIs monitor the health of day to day performance. Pick a few OKRs each quarter, link them to a small set of clear KPIs, review weekly, and adjust quickly when numbers slip.
Key Takeaways:
OKRs and KPIs help you manage performance, but they do different jobs. OKRs set the direction for change, while KPIs show how the business runs day to day.
This guide explains each tool, how they work together, and when to use them. You will see simple examples, common mistakes, and a clear way to roll them out.
OKRs help teams set clear goals and track progress in a simple, honest way. They make priorities clear and keep people focused on outcomes, not busywork.
An Objective explains where you want to go and why it matters, written in plain words the team can remember.
Key Results are the hard numbers that prove progress, each with a clear target, a date, and an owner.
OKRs help you focus on the few goals that matter right now.
Common traps include writing Key Results as tasks instead of outcomes and setting too many Objectives at once.
Teams also treat OKRs like a to do list and skip weekly reviews, which is how end of quarter surprises creep in.
KPIs are the numbers that show how your business is performing over time. Define each in plain terms with an owner, target, data source, and review rhythm so trends and risks show up early.
Benefits of KPIs
Well chosen KPIs give a steady view of performance and support day to day decisions. They make it easier to spot trends, compare results, and set fair targets for planning and forecasting.
Common mistakes include tracking too many numbers with no clear owners, choosing vanity metrics that look good but do not change decisions, and setting targets without a baseline.
| Feature | OKRs | KPIs |
| Primary purpose | Drive change and progress | Monitor ongoing performance |
| Scope | Strategic outcomes | Operational health |
| Timeframe | Quarterly with weekly reviews | Continuous with weekly or monthly reviews |
| Target style | Stretch targets | Fixed targets |
| Success signal | 70 to 80 percent is healthy | 100 percent is the goal |
| Owner | Objective owner plus KR owners | Metric owner |
| Risk of gaming | Lower when outcomes are used | Higher if only activity counts |
| Typical format | O: statement, KR1..KR3 with numbers | Metric name with target and cadence |
In short, OKRs set the direction while KPIs tell you if the engine is running well.
OKRs are most useful when you are launching a new product or entering a new market, and when you need alignment across several teams.
They’re also beneficial when you want a clear push on a few important outcomes, or when you are changing how you work and need focus.
KPIs fit best when you are running proven processes that need consistency and control.
Use them to watch service levels, costs, and financial health, and to coach teams with trend data and fair benchmarks.
They shine in service desks, finance, logistics, and any function where steady performance matters every week.
To tighten processes and remove bottlenecks, see our guide on optimising business operations.
Link KPIs to the OKRs they support so you can see business health and progress in one place. This keeps the steady pulse and the push for change connected.
Track related KPIs each week like website sessions, content output, cost per lead, and sales acceptance rate so the OKR’s impact shows up early.
Write three clear company goals for the year. Keep them plain and tied to outcomes your team understands.
For example, grow revenue by 25 percent, lift NPS to 60, and launch in two new cities. Say them out loud and check with your team; if they feel fuzzy, simplify them until anyone can repeat them.
For more structure on shaping goals and turning them into an execution plan, see our guide on strategic planning firms.
Use an OKR when the goal needs a push and cross team effort, like a product launch or a big shift in how you work.
Use a KPI when the goal needs steady control and visibility, such as service levels, costs, or quality you want to keep stable.
Run a one hour workshop with each team. Start by drafting one clear Objective and three to five measurable Key Results.
Gather your current KPIs, confirm each has a named owner and target, and fix any gaps on the spot.
Find the current number first and write it down as your baseline. Set a realistic target using the last three to six months of data, and adjust for seasonality or known changes.
Give every Objective, Key Result, and KPI a named owner who is close to the work. The owner reports progress, flags risks early, and pulls in help to remove blockers.
Create a single page view per team that anyone can read in a minute.
List each Objective with its Key Results and a small KPI table showing target, actual, trend, and a short note when something needs attention.
Hold a short weekly update where owners share numbers, call out risks, and agree actions.
Run a monthly review to look at trends, capacity, and budget, then close the quarter by retiring or resetting OKRs and refreshing targets.
At quarter end, run a short review to capture what worked, what did not, and what to change next time. Write the top three lessons, keep the good habits, and drop the rest.
New Found Fame is a hands-on growth partner for owners and leaders who want clear goals and real traction.
We align strategy, design, digital and marketing, turn your strategy into one sharp company OKR with a small set of team OKRs, and tidy KPIs so they are trusted and owned.
We stay practical and stick with you until the system runs smoothly, whether you are a startup, scale up, or established firm across Australia and beyond.
Ready to set goals that stick and track what truly matters? In one call we will review your current metrics, suggest a draft OKR, and outline a simple scorecard you can use straight away.