OKR and KPI are two concepts that generate a
Posted: Sun Jan 19, 2025 6:02 am
lot of confusion. That's why we decided to explain the acronyms and how to apply them in your daily life. Check it out!
Let's be honest, working with digital products requires knowing a huge amount of acronyms. UX / UI , BI , LTV , JTBD , MVP , CPC , etc. Although there are many contents and glossaries like the one from PM3 that contain this bunch of acronyms, in this text we want to focus only on two very specific ones: OKR and KPI .
After all, what is OKR and KPI?
OKRs constitute a framework used for company alignment and direction , while KPIs are important indicators that help us see if we are on the right path, that is, generating results.
Sometimes they may seem like the same thing, but in fact they are actually how famous is botim of worldwide complementary . But without stressing, my goal is to explain what they are, the benefits of each and how to implement them.
After you finish this text, you will not only have a clearer understanding, but also the confidence to move forward in how to measure the success of your goals! Let’s go!
What are OKRs?
OKR stands for Objective and Key Results . Essentially, OKR sets a clear direction to drive alignment across the company and provides a means of measuring results to see if we are moving in the right direction.
They are usually defined by the C-level for the entire company to follow and thus keep everyone aligned with the challenges and objectives.
Used by Google, Spotify, Airbnb, Twitter and LinkedIn, the OKR system has been tried and tested by major technology players in the market. In fact, I worked with the OKR method at OLX Group in Lisbon, where I worked as Head of Marketing and still do today.
How to define OKRs?
In this video, we explain everything about the world of OKRs and KPIs.
The best way to measure OKR is using the following formula:
I will_________ measuring through the________
This above could be filled in like this:
I will make sure that users love our Android app by measuring it through ratings on Google Play.
Your OKRs are made up of the Objective (the O in OKR) and the Key Results (the KRs), which are metrics (often KPIs ) that help us measure and monitor progress to see if we are achieving the objective.
For example:
O: Users love our Product!
KR1: Increase NPS by 10 percentage points by the end of the quarter.
KR2: Increase the rating of the Android app from 4 to 4.5 on Google Play.
KR3: Get at least 20 video testimonials.
Experts recommend between 2-5 KRs for each “O”. More than 5 becomes very difficult to track and can lead to loss of focus . It is worth remembering that the first Key Result is more important than the second and so on.
Your metrics should complement and counter-measure each other . If you measure customer acquisition without also measuring customer retention, it sends the message that you only care about acquiring new customers and not keeping them engaged with your product.
There’s also plenty of room for creativity. The best OKRs are quick, memorable, and inspiring:
O: Increase online presence (GOOD)
O: Increase brand presence on digital channels (BOM)
O: Get people talking about us on social media (BEST!)
Google sets its OKRs with very ambitious goals for its teams. The logic behind this is that the company doesn’t expect teams to achieve these goals 100%, but rather to work hard to get there.
When talking about OKRs, some experts quote Oscar Wilde: “Shoot for the moon . Even if you miss, you will land among the stars.”
It is important to note that OKRs should not be tied to employee performance evaluations /compensation. Since the objectives are, by default, very ambitious, employees should not lose their annual bonuses for failing to meet them, for example.
Are there different types of OKRs?
There are! Using the OKR tool should be an agile strategy and you should adapt the system to your reality . For example, teams can differentiate between aspirational or more tangible OKRs.
Aspirational OKRs ( Moonshots ) mean knowing that you won't achieve all the KRs, but you'll try hard until the end; tangible OKRs (or roofshots ) are more "down to earth" and should be 100% achieved.
There is also a difference between strategic and tactical OKRs . Sometimes teams need to work at different paces and using OKRs can help them work together.
A strategic OKR focuses on the big picture of the company , usually set annually by executives at the top of the chain. On the other hand, tactical OKRs are lower-level , for teams working on individual products , and should always be broken down from strategic OKRs.
Why do companies love OKRs?
If you have never worked with OKRs and do not fully understand the benefits of this framework , here is a list:
They are agile . They set clear goals every quarter (not every year) allowing companies to adapt quickly while providing opportunities to reassess;
Provide clarity and cohesion. OKRs are visible to all levels of the company, which provides transparency and ensures that everyone knows where the company is headed;
They are easy to understand. OKRs should not be complicated. Using easy, conversational language keeps things simple. By avoiding jargon, anyone can understand what it means;
They’re inspiring and ambitious. OKRs help motivate and inspire teams to continually improve. Sometimes called “stretch goals,” Google expects its teams to achieve 70% of their goals;
They are both bottom-up and top -down . Here , individuals are involved in setting goals, as around 50–60% of a company’s OKRs are set by teams. This involves everyone in the process and helps create a better understanding of the company’s overall strategy.
Let's be honest, working with digital products requires knowing a huge amount of acronyms. UX / UI , BI , LTV , JTBD , MVP , CPC , etc. Although there are many contents and glossaries like the one from PM3 that contain this bunch of acronyms, in this text we want to focus only on two very specific ones: OKR and KPI .
After all, what is OKR and KPI?
OKRs constitute a framework used for company alignment and direction , while KPIs are important indicators that help us see if we are on the right path, that is, generating results.
Sometimes they may seem like the same thing, but in fact they are actually how famous is botim of worldwide complementary . But without stressing, my goal is to explain what they are, the benefits of each and how to implement them.
After you finish this text, you will not only have a clearer understanding, but also the confidence to move forward in how to measure the success of your goals! Let’s go!
What are OKRs?
OKR stands for Objective and Key Results . Essentially, OKR sets a clear direction to drive alignment across the company and provides a means of measuring results to see if we are moving in the right direction.
They are usually defined by the C-level for the entire company to follow and thus keep everyone aligned with the challenges and objectives.
Used by Google, Spotify, Airbnb, Twitter and LinkedIn, the OKR system has been tried and tested by major technology players in the market. In fact, I worked with the OKR method at OLX Group in Lisbon, where I worked as Head of Marketing and still do today.
How to define OKRs?
In this video, we explain everything about the world of OKRs and KPIs.
The best way to measure OKR is using the following formula:
I will_________ measuring through the________
This above could be filled in like this:
I will make sure that users love our Android app by measuring it through ratings on Google Play.
Your OKRs are made up of the Objective (the O in OKR) and the Key Results (the KRs), which are metrics (often KPIs ) that help us measure and monitor progress to see if we are achieving the objective.
For example:
O: Users love our Product!
KR1: Increase NPS by 10 percentage points by the end of the quarter.
KR2: Increase the rating of the Android app from 4 to 4.5 on Google Play.
KR3: Get at least 20 video testimonials.
Experts recommend between 2-5 KRs for each “O”. More than 5 becomes very difficult to track and can lead to loss of focus . It is worth remembering that the first Key Result is more important than the second and so on.
Your metrics should complement and counter-measure each other . If you measure customer acquisition without also measuring customer retention, it sends the message that you only care about acquiring new customers and not keeping them engaged with your product.
There’s also plenty of room for creativity. The best OKRs are quick, memorable, and inspiring:
O: Increase online presence (GOOD)
O: Increase brand presence on digital channels (BOM)
O: Get people talking about us on social media (BEST!)
Google sets its OKRs with very ambitious goals for its teams. The logic behind this is that the company doesn’t expect teams to achieve these goals 100%, but rather to work hard to get there.
When talking about OKRs, some experts quote Oscar Wilde: “Shoot for the moon . Even if you miss, you will land among the stars.”
It is important to note that OKRs should not be tied to employee performance evaluations /compensation. Since the objectives are, by default, very ambitious, employees should not lose their annual bonuses for failing to meet them, for example.
Are there different types of OKRs?
There are! Using the OKR tool should be an agile strategy and you should adapt the system to your reality . For example, teams can differentiate between aspirational or more tangible OKRs.
Aspirational OKRs ( Moonshots ) mean knowing that you won't achieve all the KRs, but you'll try hard until the end; tangible OKRs (or roofshots ) are more "down to earth" and should be 100% achieved.
There is also a difference between strategic and tactical OKRs . Sometimes teams need to work at different paces and using OKRs can help them work together.
A strategic OKR focuses on the big picture of the company , usually set annually by executives at the top of the chain. On the other hand, tactical OKRs are lower-level , for teams working on individual products , and should always be broken down from strategic OKRs.
Why do companies love OKRs?
If you have never worked with OKRs and do not fully understand the benefits of this framework , here is a list:
They are agile . They set clear goals every quarter (not every year) allowing companies to adapt quickly while providing opportunities to reassess;
Provide clarity and cohesion. OKRs are visible to all levels of the company, which provides transparency and ensures that everyone knows where the company is headed;
They are easy to understand. OKRs should not be complicated. Using easy, conversational language keeps things simple. By avoiding jargon, anyone can understand what it means;
They’re inspiring and ambitious. OKRs help motivate and inspire teams to continually improve. Sometimes called “stretch goals,” Google expects its teams to achieve 70% of their goals;
They are both bottom-up and top -down . Here , individuals are involved in setting goals, as around 50–60% of a company’s OKRs are set by teams. This involves everyone in the process and helps create a better understanding of the company’s overall strategy.