OKR vs. KPI figure out these two concepts at once!

OKR vs. KPI Figure out these two concepts at once ！
OKR vs. KPI

KPI It is a way for the team to track the performance of projects and actions ;OKR Is the architecture used to achieve ambitious goals and aspirations .

KPI The core driving force of is 「 From top to bottom 」, The boss or supervisor set a goal , Tell the employees below , No matter how , As long as the person who runs to this end , There are rewards , So all employees began to focus on the goal in front of them, regardless of their heads running .

OKR The core driving force of is 「 From the bottom up 」, The boss or supervisor set a goal , Let the employees below think together , What tasks need to be completed to achieve this goal , Make sure that everyone in the organization clearly understands why this goal is set , And how to achieve . Even if OKR The goal is usually set with intention 、 And boldness , But it still needs to be controlled under the premise that it can be achieved .

Catalog
OKR And KPI Which is better ？
OKR： New trend of enterprise management ,Intel、Google All in use ！
KPI What is it? ？
Three very common KPI form ：
OKR What is it? ？
OKR Develop the know-how
The goal is （ Objectives ) Setup tips ：
The goal is （ Objectives ) Set features
Key results （ Key Result ) Setup tips ：
Key results （ Key Result ) Set features ：
Add extra ： Plan execution （ Execute )
OKR It needs to be based on value （ Value – base )
OKR The composition of
OKR Various application examples of
Company level OKR
Team level OKR
Personal level OKR
OKR Execute the process
OKR To the enterprise 6 Big advantage
OKR Common mistakes of novices
OKR Of FAQ
OKR And KPI Which is better ？
OKR And KPI No conflict , It is not only optional , many KPI It can be used as OKR Key results , There is no difference between the two , According to the different tasks we need to carry out , Choose the right method .

for instance , If we evaluate or improve a previous project today , accord with SMART principled KPI It would be a better choice , You can directly propose optimized measurement data goals and progress for the projects you have done .

If you want to create a new grand vision or change the overall strategic direction of the organization ,OKR Is the more suitable method , Because there is a correlation between goals and key results ,OKR It can help us look at our goals more comprehensively , And understand the progress relationship between the goal and the ongoing work .

about OKR and KPI The concepts of these two management methods have basic cognition , Let's learn more about these two concepts ！

OKR： New trend of enterprise management ,Intel、Google All in use ！
KPI I believe everyone has heard of , But many enterprises in Silicon Valley are using the latest and trendy OKR Have you heard it? ？

OKR The birth of 1954 year Peter Drucker To create the MBO（ Management by Objectives ）. And then 1968 year ,Intel Co founder of Andrew Grove The next step will be MBO Developed into what we know today OKR frame .

after John Doerr Joined the Intel , stay Intel I learned OKR This system , And bring it to Kleiner Perkins Venture capital company （ Google The earliest and major investors — ）, later John Doerr Will also be OKR Introduce to Google The founder of , To this day Google Still use OKR System .

OKR vs. KPI Figure out these two concepts at once ！
John Doerr Express ：「 Andy At first glance, the established objective management system looks very simple , But with the traditional emphasis on top-down 、 Stratum system 、 Annual system 、 The goal management system of reward and punishment system is quite different .」

OKR and KPI Are used as an indicator to measure the effectiveness of work , But the conceptual basis of the two is different , Before you know OKR Before , Let's get familiar with KPI Core concept of , This will help you understand OKR More help ！

OKR For a goal management tool , It can simply condense the organizational direction and provide a benchmark .

KPI What is it? ？
According to Wikipedia ,KPI（ Key Perfomance Indicators, Key Performance Indicators ） It refers to the most important indicator to measure the effectiveness of a work management , It is a tool for data management , It will be the company 、 staff 、 With the performance of various things at a certain stage, quantify and qualitatively , To help optimize organizational performance and develop future strategies .

Three very common KPI form ：
Revenue growth （ Revenue Growth )： The sales of the enterprise in a certain period is compared with the previous period , Percentage of increase or decrease .
Net interest rate ( Profit Margin )： Net profit after tax as a percentage of revenue .
Customer retention rate ( Client Retention Rate)： Enterprises continue to maintain the proportion of trading relationships with regular customers , It can also be understood as customer loyalty .
for instance , It's hot now 、 Almost all brands will recruit positions —— Community editor , For Xiaobian , His KPI Maybe it's the mastery of touch rate and interaction rate . Of course , So just say 「 Touch rate 」 and 「 Interaction rate 」 It is not a complete KPI, Set an effective and excellent KPI It also needs to meet SMART principle , That is, concreteness 、 measurable 、 Can be realized 、 The correlation 、 The time limit .

S For concrete （ Specific ）： It means that the performance appraisal should be focused on specific work indicators , You can't generalize .
M For measurable （ Measurable ）： Performance indicators are quantifiable , Data that can verify these performance indicators .
A Represents realizable （ Attainable ）： It refers to that performance indicators can be achieved with efforts . Please avoid setting too high or too low goals .
R Represents relevance （ Relevant ）： It refers to the clear correlation between performance indicators and superior objectives , Finally, it is combined with the company's objectives .
T Represents the time limit （Time bound）： A specific deadline for the completion of performance indicators .

Combined with the above SMART Conditions , Small make up the KPI Maybe it will be ：「 In three months , Let the overall touch rate of fan page Posts increase 10%, The interaction rate increases 5%」.

General understanding KPI after , We want to get to the core theme of this article —— OKR！

OKR What is it? ？
OKR ( Objective Key Result ) Target key achievements , It is a combination of two words ,「 O 」 representative Objective（ The goal is ）, That is, something we want to achieve ,「 KR 」 representative Key Result（ Key results ）, The key result is the path to the goal , At the same time, you can set multiple key results to make the whole organization move towards the goal .

The goal is （ Objectives ) : What you want to achieve

Key results （ Key Results ) : How do you measure progress

Andrew Grove It won't tell Intel employees exactly what to do , Instead, set a goal for them , And let them decide how to achieve it , At first, he called this method Intel target management , Then it is simplified into goals and key results , It's today's OKR.

Andrew Grove Of OKR Based on a revolutionary idea ： When teams focus on results rather than processes , Their work performance will be better .

John Doerr Also published a book with OKR A book with a theme 《Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs》, Explain in detail about OKR And valuable cases , This book is also highly appreciated by Bill Gates , be called ：「 Managers who want to improve , A must read book .」 It has also won the top managers of major well-known enterprises （ Such as LinkedIn、Facebook、） Recommendation and praise , At present, you can buy it in Dalian lock bookstores and online platforms 《OKR： Do the most important thing 》.

OKR Develop the know-how
The goal is （ Objectives ) Setup tips ：
Simple and easy to remember , Too long or too tongue twister sentences are not suitable
Integrate the company culture , Add a little heart 、 originality （ Such as ： Wealth and honor need help , Insurance to Fubang ）
The goal is （ Objectives ) Set features
Uniformity （ C onsistency ) ：
The goals of the team and the company are built in the same direction , In order to help the whole organization achieve the final results .
High impact ( High Impact )：
Be highly influential , If you can achieve your goal , It will have a great positive effect on the whole organization .
timeliness ( Timeliness )：
There is a time limit , In order to view the current results at different time nodes , And make corrections and adjustments at the next time point .
Key results （ Key Result ) Setup tips ：
Break the key achievements into several action items
Set a goal 2 – 5 Key achievements
Key achievements need to be presented in the way of data growth
Key results （ Key Result ) Set features ：
High impact ( High Impact ) ：
Can reflect great changes , It's one even if you finish seven 、 Eighty percent , The whole organization will also have very interesting results , Don't put Key Results The order is too simple , Challenging Key Results To be effective .
Accuracy （Accuracy ）：
Have a precise and clearly defined scope , This one Key Results If it belongs to department level , Then it will be as accurate as 「 The number of sales of a product 」 The degree of , conversely , If it's the whole company Key Results, It will be like 「 Annual turnover of the company 」 To this extent .
variability （ Variability ）：
It should be to calculate those you can't control , But things that can be changed by you , For example, writing ten articles is not one Key Results, And an article that reaches 1000 clicks is one Key Result.
Add extra ： Plan execution （ Execute )
OKR Medium KR Make a more detailed division , You can pull out a series in order to achieve KR Our action plan （ Execute ). In order to achieve KR Various tasks that need to be done 、 project , The record of its way of action is also important , When you find that your actions are not helpful to the growth of your key achievement data , You need to change your action immediately .

Such as ： If you are in the 「 Some action （ Execute ) 」 When you get results on , Yours 「 Key results X 」 From 10% become 25% .

OKR vs. KPI Figure out these two concepts at once ！

OKR It needs to be based on value （ Value – base )
stay OKR It is mainly used to measure whether the team or individual is moving towards the goal of success , And the definition of success is to see the progress of data 、 grow up , Not the completion of the event , If there is no way to bring measurable correspondence between the completion of the event and the achievement of the goal , Then the completion of these events cannot be regarded as success .

Take writing an article as an example ：

The goal is （ Objects ) : No advertising expenses , It can also get tens of thousands of exposures per month

Key results （ Key Results ) :

The growth of natural flow in one season has increased from 40K To 50K.
Output in a quarter SERP The top three articles are from 5 The article arrives 10 piece
Plan execution （ Execute )

Monthly release 2 – 3 A new article .
Choose every month in SERP 10 Keywords within the name , Optimize 2 – 3 An old article , The goal is to improve to SERP 5 In name .
Search for valuable keywords in the market every month ( At least more than 1000 Monthly search volume ）3 – 4 Group do keyword analysis .
At least 10 This article can bring monthly 1000 Article on natural flow .
Therefore, in order to gain the attention of the market audience 「 O 」, In the process of producing articles , It also includes thinking about what the audience most wants to know about this topic , Finally, make a dry and full content . Also because it provides very valuable content , The growth of traffic will be accompanied , Many enterprises have seen us , Have more cooperation opportunities with us .

High exposure at the same time , We have also received the demand for benefit exchange from all parties , Or when the industry cannot develop content strategies by itself and directly imitate content production to become the benchmark of the industry , Also unexpectedly obtained a more stable flow source .

Differentiate between value bases （ Value – based ） And project foundation ( Activity – based ) The results of

Think about the workplace environment , Got a salary increase （ Key Results ) Come on , Some colleagues work overtime very hard 、 Long working hours , But the salary is not as good as some on time , But colleagues who only do a few cases and have a holiday for several days .

Eliminate the factor of office politics , The most likely reason is the success of those cases ( Initiative ) Be able to work for colleagues 、 Enterprises bring in a lot of performance （ The most important goal of the company ）, If a colleague has the ability, he has to get a case during the commuting time , The company will not have other requirements , I even hope she can have more rest , Get ready for the next case , Colleagues with long working hours may have done a lot of paperwork 、 communicate 、 The way of doing chores ( Initiative ), Things that are not directly related to bringing performance to the company , Even though he spent a lot of effort to complete these projects , I can't get a raise in salary .

What I want to express from the above example is ： Is there a corresponding correlation between what you do and your ultimate goal , If there is no direct correspondence between the goal and the implementation project , Then these implementation projects cannot be used as OKR Tracking indicators in .

Project basis ( Activity – based ) The description of is usually like this ：

Plan new marketing strategies
Design three visual pictures
Phoning 5 Customers
Value base （ Value – based ） The description of is usually like this ：

Reduce customer acquisition costs from 20 element / Man to 15 element / people .
Improve the conversion rate from 10% To 20% .
Optimize monthly customer visits from 300 people / Thoughtful 500 people / Zhou .
OKR The composition of
John Doerr There is a set OKR Formula ：

OKR vs. KPI Figure out these two concepts at once ！
An exact goal must be able to describe 「 What is this goal 」 as well as 「 How to calculate its achievement 」, The key is this 「 Calculation 」, If a goal cannot be evaluated , Then it will only become a wish ,John Doerr This set of formulas explains very accurately OKR The core concept of theory .
Key Results Is to achieve the goal 「 O 」 In the process of , A series of evaluation systems we need to do , every last 「 O 」 There will be two to five Key Results, More than five will be difficult to remember , And every one KR Must be computable and have an exact quantitative benchmark .

OKR Various application examples of
OKR Not only for companies or teams , Even our personal life can be set OKR, It is widely used , Let's take a look at different levels OKR How to set .

Company level OKR
Take the recent popular online learning platform Udemy Come on , His OKR The setting may be ：

The goal is ( Objective )： Expand contact with new students

Key results ( Key Result )： do AB test , Absorb new students and attract existing students back
Key results ( Key Result )： Increase the number of active users per month to 15 ten thousand people
Key results ( Key Result )： Create internal tools to track key growth indicators
Key results ( Key Result )： Introduce new features to help tutors make more attractive movies
Team level OKR
Take the marketing department for example , His OKR The setting may be ：

The goal is ( Objective )： Enhance brand awareness

Key results ( Key Result )： Breakthrough in web access 100 Thousands of people .
Key results ( Key Result )： Social media tracking growth 10 times .
Key results ( Key Result )： recruit 1000 Members of the community and make them successfully enter the community .
Personal level OKR
In our personal life , OKR The setting may be ：

The goal is ( Objective )： To lose weight

Key results ( Key Result )： Don't eat after eight in the evening
Key results ( Key Result )： Exercise for 30 minutes every day
Key results ( Key Result )： Don't order afternoon tea with colleagues
OKR Execute the process

OKR vs. KPI Figure out these two concepts at once ！
OKR To the enterprise 6 Big advantage

Set actionable goals quickly （ Save Time For Setting Goals )：OKR The built-in format enables teams to easily start setting and continuously improve their OKR.
Easily set extension goals （ Stretching )： If you want to challenge yourself , Consider setting at least one key result as an extension goal . Extended goals mean no 100% Grasp the challenging goals that can be achieved , So it doesn't matter if you're not sure .
Easy to track （ Tracking ) : Key indicators consist of many valuable foundations （ Value – based ) The project is combined into , Therefore, team members can grasp the implementation progress at any time and make immediate strategic adjustments .
Promote cross sectoral collaboration （ Alignment )： Goals often involve different departments ,OKR It provides the common goal of the whole group , Cross team, even at different levels , They are also moving towards the same ultimate goal .
Improve employee participation （ Engagement )： Because a goal may contain multiple key results , So in setting OKR when , Many companies will adopt a hybrid approach . The company's leadership and senior executives are responsible for setting goals , Then, individual teams or employees set key results that will help achieve these goals . This hybrid approach combines top-down and bottom-up concepts , It can help employees participate in the process of goal setting , Employees will understand how their key results actually help the company achieve top-level goals , And can make this key result here OKR Keep the first consideration in the cycle of .
Common commitment （ Commitment ) : OKR In the process of establishment, in order to achieve the ultimate goal , Will be cut into many key indicators to individual teams , The participating teams commit themselves to the key indicators they can achieve , And adhere to the priority when implementing .
Andy Grove Proposed refining method ： I will finish [ O ], The measurement indicators used are [ KR ]

OKR Common mistakes of novices
KR Not enough to support O Of ：
It means when these KR It's done ,O But it can't be realized . This mistake is probably due to the fear of taking risks or spending resources when setting , Which leads to the setting KR Too easy .
Different OKR Priority judgment error of ：
An organization may have more than one at the same time OKR, yes , we have OKR Is a more challenging nature , The more important role than reaching the standard is to motivate the members of the organization , yes , we have OKR Is the nature that must be achieved , When the members of the organization are not clear about the current situation and objectives of the organization , It may cause miscarriage of justice , Unable to allocate resources reasonably , Most resources tend to have a lower priority OKR, Instead, let it 100% The goal achieved cannot be achieved .
Link OKR And performance evaluation ：
If the OKR The results of are included in the performance evaluation , Then it is likely that the members of the organization are worried about poor performance , And set an easy one OKR, In order to facilitate their career development .
O Set as a low value target ：
OKR It must reflect clear business value , Otherwise, it is not worth wasting resources to do them , Low value targets are those that are 100% complete , And no one will notice the goal .
take KR As many to-do items ：
OKR The setting of needs to be based on value （ Value – based ) Not the project foundation （ Activities – base ) On , Value base （ Such as ： Natural flow grows in a month 50%、 Improve conversion rate 5% ) It can let you know the data progress when each key goal is completed , And finish the project （ Such as ： Release new features 、 Come up with a marketing strategy ） If there is no progress towards the goal , In this way OKR Setting is the direction of failure .
OKR Of FAQ
How to set tasks that cannot be measured by numbers OKR？
Almost everything can be quantified , If you're upset about setting key results for your goals , Ask yourself ： How do I know this goal has been achieved ？
Let the organization successfully implement OKR How long will it take ？
It usually takes three to six months , Let your whole organization know and be familiar with OKR The concept and practical application of .
What proportion is achieved OKR It can be regarded as success ？
It depends on whether the organization uses 「 Extensible goals 」, If any , Then reach 70% It has been a very excellent performance , Suppose you can achieve it every time 100％, That means that this extensible goal is not challenging enough ; If you don't set extensibility goals , Then we should reach 100% Of OKR.
Who will lead OKR In the process of ？
Usually choose a right OKR Understand the familiar person as the main leader , This role mainly has two important tasks ： education OKR Concept and management execution . So this role is to help the whole team execute OKR It's going well , He needs to judge the right OKR Set and execute the process 、 Schedule Planning 、 Master the end date and other items , When discussing with all teams what they want to do OKR after ,OKR Our leaders need to document these records and maintain communication with teams , Let everyone know when to perform the task .

OKR vs. KPI Figure out these two concepts at once ！
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