Before you start
You need both pieces in place: a working OKR cycle AND a defined set of business KPIs. If teams confuse the two (a common pattern), run Step 1 as a workshop before anything else — it'll save you a quarter of confusion.
The 7 steps
7 steps · sequentialClarify the difference between KPIs and OKRs
Build shared understanding before integrating. The integration breaks if half your team thinks "KR with a number" means "KPI."
- KPIs = metrics that measure ongoing business performance (e.g., churn %, gross margin)
- OKRs = time-bound goals designed to drive change or improvement
- Both are essential: KPIs track health, OKRs drive growth
- Share examples with teams to avoid misalignment
Identify core KPIs for your business
Establish the baseline metrics that always need tracking. The hard part isn't naming KPIs — it's keeping the list short.
- Finance KPIs (ARR, burn rate, gross margin)
- Customer KPIs (NPS, churn %, LTV)
- Product KPIs (DAUs, feature adoption)
- Sales & Marketing KPIs (pipeline coverage, CAC)
- Limit to the most important 10–12 metrics
Map OKRs to KPIs
Show how strategic goals influence core metrics. Some OKRs will tie cleanly; others (innovation bets, foundational work) won't — and that's expected.
- For each company-level Objective, identify which KPIs it impacts
- Example: Objective = "Delight customers" → KR: "Increase NPS from 45 → 55" → KPI link: NPS becomes both a KR and a core health metric
- Not all OKRs will tie to KPIs — and that's okay. Some drive innovation, foundational capability, or culture
Integrate into dashboards and reports
Create one source of truth for both KPIs and OKRs. Two separate dashboards mean two separate conversations — defeating the whole purpose.
- Build dashboards that display KPIs alongside OKR progress
- Use color coding (R/Y/G) for clarity
- Ensure leadership reviews both in the same meetings
- Keep dashboards accessible to teams, not just executives
Review together in leadership meetings
Make decisions with the full picture in view. The order matters — KPIs first (where are we?) then OKRs (what are we doing about it?).
- Start with KPI performance (business health)
- Then review OKR progress (strategic execution)
- Discuss how OKRs are influencing KPI trends
- Use this context to adjust resource allocation or priorities
Adjust as needed mid-cycle
Stay agile when KPIs or OKRs shift unexpectedly. KPIs are the early warning system — if a KPI breaks, check the OKRs that should be moving it.
- If KPIs fall below thresholds, review related OKRs
- If OKRs are off-track, check for KPI side effects
- Update forecasts and communicate changes to teams
- Document learnings for the next cycle (see Mid-Quarter Review)
Reflect and improve
Strengthen integration each cycle. Some KPIs should become KRs next cycle if they're underperforming — that's the system working.
- In retrospectives, evaluate whether OKRs meaningfully influenced KPIs
- Decide which KPIs should evolve into KRs next cycle
- Capture best practices for other teams
- Share a combined KPI + OKR report with stakeholders
Outputs of this workflow
- Shared definitions of KPIs vs. OKRs every leader can recite
- A list of 10–12 core KPIs across finance, customer, product, sales, marketing
- An OKR → KPI map plus a separate "strategic OKR" list for non-KPI work
- A unified dashboard showing KPIs and OKR progress in one view
- A leadership meeting cadence reviewing both in the same conversation
- An end-of-cycle ritual for evolving underperforming KPIs into KRs next cycle
Unify KPIs and OKRs inside OKRs Tool.
KPI dashboards, OKR progress, and KR↔KPI mapping all in one view — so leadership reviews health and execution in the same meeting. Free for up to 5 users.