OKR vs KPI – Outcome vs Output – LR Virtual Classroom

I recently got acquainted on the word OKR – Objectives & Key Results. My thirst for the learning made to dig drive to understand what is all about OKR and its comparison to KPI – Key Performance Index. KPIs are typically the Outputs whereas the OKR will showcase the outcomes because of the KPI.

Outcomes vs Outputs:

Outputs are the results which is achieved immediately after the activity.
The outcome is the long term benefit based on the output.
Outcome is the result of the output in terms of skills, knowledge, behavior etc.

Outputs	Outcomes
PMO facilitated the training for 20 professionals in latest technologies.	The 20 professionals who got trained demonstrated the skills in the completing the program deliverables in short cycle of time.
Conducted a campaign by applying the SEO strategy.	The campaign created more than 3 million views and generated 3 business leads.
PMO set up tool process & created interactive dashboards.	The process and dashboards helped the leadership team to reduce the cycle time and in turn cost reduction by effective decision making.

Outcome vs Output

Prepared a thread to understand the difference between OKR & KPI in a beginner’s perspective.

✔ In simple terms, OKR’s — Defines the process along with key results & KPI — Measures the key results

✔ Goals — OKR’s are Lead Goals/Indicators ; KPI’s are Lag Goals/Indicators

✔ Outcomes — OKR’s looks forward at future outcomes & results whereas KPI’s looks back at whether the targeted results being achieved

✔ For E.G, OKR’s- Increase of Sales by 15% with Increased Customer Satisfaction where as KPI’s — Increase of Sales by 15% or Achieve sales of 15%

5 ✔ Felipe Castro shares the below insights about the OKR vs KPI

✔ OKR’s are objectives in creating sustainable change in performance whereas KPI’s are targets which you measure periodically, which makes Key Results.

✔ OKR’s are driven from Top-Down whereas KPI’s are driven by Bottom-Up

✔ OKR’s are defined Quarterly whereas KPI’s are defined Annually

✔ OKR’s defines goals for the achievement of KPI’s whereas KPI’s defines goals to sustain the performance

If you want to grow, improve, sustain your business, you should use both in business. KPIs are an important component of OKRs.

OKR’s can be applied to One’s Personal Goals as well.

Quick summary below. Do scroll left 🙂