When you’re building a startup, goal-setting isn’t optional - it’s survival.
But the moment you introduce terms like OKRs and KPIs, things get murky. Are they the same thing? Can you use one without the other? Should you?
We’ve spoken with hundreds of founders, and here’s what we’ve learned: most early-stage teams either conflate OKRs and KPIs or use them in isolation - which leads to misalignment, over-measurement, or goals that feel disconnected from reality.
Here’s the truth:
OKRs and KPIs serve different purposes - and you need both to scale effectively.
In this article, we’ll break down the difference, show how they work together, and help you avoid the classic traps that cause teams to either aim too high with no way to measure success - or measure everything with no real ambition behind it.
Let’s get clear on what these terms actually mean - and how to use them without slowing your team down.
What Are OKRs?
OKRs stand for Objectives and Key Results - a goal-setting framework designed to help teams stay focused, aligned, and ambitious.
At their core, OKRs answer two simple questions:
- Objective: Where do we want to go?
- Key Results: How will we measure if we’re getting there?
Each OKR includes a clearly stated Objective (qualitative and inspiring) and 2–5 Key Results (quantitative and outcome-driven). It’s not a to-do list - it’s a compass.
Example:
Objective: Improve user onboarding experience
Key Results:
- Increase onboarding completion rate from 45% to 75%
- Reduce average onboarding time from 12 minutes to under 7
- Raise user satisfaction score during onboarding to 90%
OKRs are typically set quarterly and reviewed regularly. They’re meant to stretch teams - not just maintain performance.
Used well, OKRs bring clarity to what matters most, encourage focus, and ensure everyone pulls in the same direction - even as priorities shift.
What Are KPIs?
KPIs (Key Performance Indicators) are metrics that help you measure performance over time.
Unlike OKRs, KPIs aren’t necessarily tied to specific goals or cycles. Instead, they’re used to track the ongoing health of a function, process, or business outcome.
Think of KPIs as your dashboard indicators: revenue, churn rate, conversion rate, uptime, NPS - these metrics help you monitor whether things are running as expected.
Example:
A support team might track KPIs like:
- Average response time
- Customer satisfaction (CSAT)
- Ticket resolution rate
- First contact resolution %
These are not project-specific goals. They’re continuous metrics that help teams understand performance and spot trends.
In short:
- OKRs are about change → what we’re trying to improve
- KPIs are about consistency → what we’re trying to maintain or monitor
Both are valuable - but serve very different purposes.
The Key Differences Between OKRs and KPIs
While OKRs and KPIs both help teams measure progress, they serve different strategic functions. Here’s how they differ across key areas:
In short:
- Use OKRs when you want to drive new outcomes or big improvements.
- Use KPIs to track the health and stability of existing processes.
Can You Use OKRs and KPIs Together?
Absolutely. In fact, the most effective teams use OKRs and KPIs side by side - not as competing systems, but as complementary tools.
Think of it this way:
- KPIs tell you if the engine is running smoothly. They monitor your core operations: signups, churn, uptime, revenue.
- OKRs help you build a faster, better engine. They push your team to improve a process, launch a new initiative, or test something bold.
For example:
- A KPI might be “Customer Retention Rate.”
- An OKR could be:
Objective: Increase customer retention by improving onboarding
Key Results:
→ Increase activation rate from 40% to 60%
→ Reduce onboarding time by 30%
→ Launch 3 new onboarding tutorials
The KPI tracks performance. The OKR drives the project to improve it.
When used together, you get a clear view of where you are - and where you're trying to go.
When to Use OKRs vs. KPIs
So, when should you use one over the other? Here’s a simple breakdown to guide your decision:
In short:
- KPIs are for monitoring.
- OKRs are for moving.
Examples:
- KPI: Website conversion rate
- OKR: Improve conversion rate by redesigning the homepage
- KPI: Weekly active users
- OKR: Increase WAUs by launching a referral program
Use KPIs to make sure your business is healthy.
Use OKRs to make it better.
Common Mistakes: Confusing OKRs and KPIs
Even experienced teams sometimes blur the lines between OKRs and KPIs. Here are some of the most common mistakes - and how to avoid them:
1. Treating KPIs as Objectives
Teams often take a KPI like “revenue” or “churn” and plug it directly into their OKRs without a clear change goal. But OKRs are meant to drive improvement. Simply monitoring a number isn’t enough - you need a desired outcome.
Instead: Make sure every objective has a clear direction: Grow, Improve, Launch, Fix, etc. Pair that with key results that show progress toward that change.
2. Listing Tasks as Key Results
Key results should be measurable outcomes, not a to-do list. “Hold weekly marketing meetings” is a task. “Increase MQL-to-SQL conversion rate from 20% to 35%” is a key result.
Instead: Focus on the result you want, not just the actions you plan to take.
3. Using KPIs to Avoid Setting Stretch Goals
Because KPIs are familiar and comfortable, some teams default to them instead of creating bold, outcome-driven OKRs.
Instead: Push your team to define ambitious goals that will move the needle. Use OKRs to grow - not just to report.
Final Thoughts
You don’t have to choose between OKRs and KPIs - you need both.
OKRs help you define the change you want to create. KPIs help you measure the health of what you already have. Together, they create a complete picture of performance and progress.
If you’re serious about scaling your startup with focus and accountability, learning how to use these tools side by side is essential. OKRs drive growth. KPIs keep it sustainable.
