Last updated 20 November 2025 ·
Why the Confusion Exists
If you’ve ever heard leaders use KPIs and OKRs interchangeably, you’re not alone. On the surface, both are ways of measuring performance. But dig deeper and you’ll see they serve very different purposes. Get them wrong, and you end up either tracking too much “business as usual” or chasing ambitious goals without monitoring day-to-day health.
The winning approach? Balance KPIs and OKRs so they work together - one keeps the engine running, the other points the car toward a bold new destination.
KPIs: Protecting Business Health
Key Performance Indicators (KPIs) are like a doctor’s check-up. They track vital signs and alert you when something is off. Think revenue, churn rate, NPS, or gross margin.
- They are steady-state measures - usually monitored weekly or monthly.
- They tell you if the business is stable.
- They’re backward-looking, reporting on what has already happened.
👉 Example: “Customer churn <5%” is a KPI. It doesn’t stretch the business; it ensures you stay healthy.
OKRs: Driving Business Growth
Objectives and Key Results (OKRs) are different. They aren’t about maintaining status quo - they’re about creating change.
- Objectives are ambitious and qualitative (“Expand into a new market”).
- Key Results make them measurable and time-bound (“Sign 20 new clients in Germany within 6 months”).
- They are forward-looking, designed to stretch your business beyond what KPIs alone would allow.
👉 Example: “Increase customer lifetime value by 15% through a new onboarding programme.” That’s an OKR.
The Bridge Between KPIs and OKRs
Think of it this way:
- KPIs tell you where you are.
- OKRs tell you where you’re going.
Used together, they ensure your business doesn’t just survive - it thrives. KPIs stop the ship from sinking, while OKRs plot the course toward new horizons.
Why Most Leaders Struggle
Many leaders fall into one of two traps:
- KPI overload: Tracking dozens of metrics that keep the business busy but not growing.
- OKR enthusiasm without balance: Chasing bold goals but ignoring day-to-day health signals. The answer is balance.
How to Balance Them in Practice
At Reclaro, we recommend leaders keep it simple:
- KPIs: Choose 5-10 that represent the health of your business (finance, operations, customer, people).
- OKRs: Focus on 3-5 ambitious goals that push the business forward.
- Review both regularly, but with different intent: KPIs for monitoring, OKRs for stretching. When leaders get this right, they stop asking “Which framework is better?” and start using both as a dynamic duo.
Final Thought
KPIs without OKRs keep you safe but stagnant. OKRs without KPIs keep you ambitious but unstable. Together, they create sustainable growth.
👉 Ready to balance your KPIs with growth-focused OKRs? Download our free OKR templates today and start building measurable goals that align with your KPIs.
