Whatever your industry, you’ve likely encountered buzzwords that overcomplicate things. Terms like KPIs (Key Performance Indicators) and OKRs (Objectives and Key Results) are often thrown around. But what do they really mean, and how can you figure out if you’re making progress without getting lost in jargon? Recently, I worked with a client on their strategic plan, inspiring me to demystify KPIs and OKRs for everyone—from individuals to nonprofits and educators.
Understanding KPIs: Tracking What Matters
KPIs are specific, measurable numbers that help you track how well something is working. Think of them like the health stats on a fitness tracker—they show you where you’re doing well and where there’s room for improvement.
Examples of KPIs:
- A nonprofit tracking the number of volunteers recruited this quarter.
- A teacher monitoring student attendance rates over a semester.
- An individual tracking how many days they stick to their workout plan in a month.
KPIs are great for keeping an eye on ongoing activities and seeing if you’re meeting your goals consistently.
Exploring OKRs: Setting Big-Picture Goals
OKRs are a way to set goals that inspire you to aim higher. They combine a big-picture objective with specific, measurable results. OKRs aren’t just about keeping the status quo—they’re about challenging yourself or your team to reach new heights.
Example OKR:
- Objective: Make the classroom a more engaging space for learning.
- Key Result 1: Increase student participation in discussions by 20%.
- Key Result 2: Implement three new hands-on activities by the end of the semester.
OKRs are about dreaming big while still keeping track of how you’ll know you’ve succeeded.
KPIs or OKRs? Choosing the Right Tool for the Job
It’s not a matter of choosing one over the other—KPIs and OKRs serve different purposes:
- KPIs are best for measuring ongoing success. Use them to track steady progress, like how many meals a food pantry serves each week.
- OKRs are great for driving change or tackling ambitious projects. For example, a small nonprofit might set an OKR to expand its outreach to three new communities this year.
Think of them as complementary tools: KPIs show how well you’re doing right now, and OKRs help you focus on where you want to go.
Questions to Help You Decide: KPI, OKR, or Both?
Not sure whether to use a KPI, an OKR, or both? These questions can help you decide where your goals fall on the spectrum:
- What are we trying to achieve? Is this about maintaining consistent performance or pushing toward a bold new goal?
- How will we know we’re succeeding? Are we tracking something ongoing (a KPI), or do we need milestones to mark progress toward a bigger vision (an OKR)?
- What metrics or milestones will help us tell our success story?" Do we need numbers to show progress, narratives to highlight transformation, or a mix of both?
- Who needs to be involved? Are we looking for widespread team alignment (OKRs) or a specific metric owned by one person or group (KPIs)?
- What review schedule—daily, weekly, or quarterly—works best for this goal? Is this something to check regularly (like KPIs) or periodically assess (like OKRs)?
Answering these questions can clarify what kind of goal-setting framework works best for your situation.
Keeping It Simple: Tips for Setting Success Measures
It’s easy to get overwhelmed when you’re trying to track progress. Here are a few tips to keep things manageable:
- Start Small: Don’t try to measure everything at once. Pick one or two key goals to focus on. For instance, a teacher might begin by tracking just one behavior, like student participation, before adding other measures.
- Make It Relatable: Choose goals that feel meaningful to your team or situation. For example, instead of saying, "Increase productivity," say, "Cut down the time it takes to pack a donation box by 10%."
- Use Plain Language: Avoid jargon. Clear goals are easier to understand and achieve. Instead of saying, 'Improve operational efficiency,' try, 'Reduce the time it takes to complete client onboarding by 15%.
- Review Often: Regular check-ins—weekly, monthly, or quarterly—help you adjust as needed.
- Celebrate Progress: Whether it’s hitting a milestone or just staying on track, take time to acknowledge wins along the way.
How to Know You’re Succeeding
At the end of the day, your success measures should help you feel confident that you’re making progress. Ask yourself and your team:
- Are we focusing on what really matters to our mission?
- Do our goals motivate and inspire us?
- Is everyone clear on their role in making these goals happen?
- Are we seeing real, positive results?
By keeping your goals simple, actionable, and meaningful, you can make progress without feeling overwhelmed. Whether you’re a teacher, a nonprofit leader, or just someone trying to get organized, these tools can help you focus on what really matters. Start today—pick one goal, decide whether it’s best tracked with a KPI or OKR, and take your first step toward meaningful progress.