KPIs, strategy & continuous improvement
OKR vs. KPI: what is the difference and when to use each
OKRs and KPIs compared: purpose, time frame, ambition, examples and how Philippine companies can combine both without creating reporting overload.
KPIs (key performance indicators) measure the ongoing health of a business: sales, margin, on-time delivery, inventory accuracy. OKRs (objectives and key results) set ambitious goals for change over a defined period: an objective that describes what you want to achieve and a few measurable key results that show you got there. KPIs keep the business running well; OKRs move it somewhere new.
Side-by-side comparison
| KPIs | OKRs | |
|---|---|---|
| Purpose | Monitor performance of ongoing operations | Drive focused change or improvement |
| Time frame | Continuous; reviewed weekly or monthly | Usually quarterly or semi-annual cycles |
| Ambition | Realistic targets; hitting 100% is expected | Often stretch goals; partial achievement can be acceptable |
| Number | Many across the company; a few per team | Few objectives per team per cycle |
| Example | Gross margin at 28% | Objective: launch online ordering for corporate clients; key results measure adoption |
| Owner | Process or role owner | Team or initiative owner |
Example: a distribution company
KPIs (always on)
- On-time in-full delivery: target 95%
- Inventory record accuracy: target 97%
- Days sales outstanding: target 45 days
OKR for the quarter
- Objective: Make Visayas deliveries as reliable as Metro Manila's
- Key result 1: Raise Visayas on-time in-full from 86% to 94%
- Key result 2: Reduce average Visayas transfer lead time from 9 to 6 days
- Key result 3: Open a cross-dock in Cebu handling at least half of Visayas volume
The OKR targets a specific gap; the KPIs keep watch over overall performance.
When to use KPIs
- Monitoring stable processes and departments
- Setting operational targets and service levels
- Building scorecards for regular management reviews (balanced scorecard)
When to use OKRs
- Driving a strategic change, such as a new channel, market or system
- Aligning cross-functional teams on a shared goal
- Encouraging ambition in areas that need a step change
Using both without overload
- Keep KPI scorecards as the backbone of monthly reviews.
- Limit OKRs to a few per cycle at company and team levels.
- Link OKRs to KPIs they should move; when the change is complete, the new level becomes a KPI target.
- Review OKRs in the same management rhythm, not in a separate process (management reviews).
- Use improvement methods like DMAIC or PDCA to achieve key results (DMAIC).
Writing good OKRs
- Objectives are qualitative and inspiring, but specific
- Key results are measurable outcomes, not activities ("raise on-time delivery to 94%", not "hold weekly meetings")
- Three to five key results per objective
- Clear owner and deadline
Writing good KPIs
- Clear definition and formula
- Reliable data source and update frequency
- Owner and target with thresholds
- Linked to a priority or process
See KPI examples by department.
Where Cirquolus fits
Cirquolus Business Compass KPI combines company direction, accountability, scorecards with metrics, targets and readings, operational reviews and an improvement portfolio, so ongoing KPIs and change goals are reviewed in one rhythm.
Frequently asked questions
What is the main difference between OKRs and KPIs?
KPIs measure ongoing performance; OKRs set ambitious, time-bound goals for change.
Can a company use both OKRs and KPIs?
Yes. Many use KPIs for operational health and OKRs for a small number of strategic changes.
How often are OKRs set?
Commonly every quarter or every six months.
Are OKRs tied to bonuses?
Many organizations avoid tying stretch OKRs directly to pay, because it discourages ambitious goals. KPIs are more often used for incentive targets.
Bring this workflow to a Cirquolus demo.
Show us your current process, companies and branches. We will map it to the modules you need and propose a realistic rollout.