Key Performance Indicator or KPI is a type of performance measurement, aimed at evaluating the success of an ongoing process or particular activity.
KPIs can apply to projects, programs, products, and a variety of other initiatives. They can measure the success of anything from sales goals to social media metrics.
KPI measures the success, the output, quantity, or quality of an ongoing process or activity.
However, because of their complementary scope, OKRs and KPIs are natural companions.
In other words: OKR and KPI work perfectly together.
KPIs help monitor performance and identify problems and areas for improvement; OKRs help solve problems, improve processes, and drive innovation. You’ll need both.
Here is an example:
Let’s say you want to measure the success of your support team. You could create a KPI that measures the average reply time for incoming support ticket calls. If you agree with Support that the average reply time should be 30 minutes or less, you’ll be able to instantly see whether your target is met.
As long as that is the case, you’re all good.
But what if the KPI indicates the average reply time currently is 48 minutes? You probably want to create an Objective to improve customer support.
How would you know you’ve improved it or not? Well, if the average reply time drops from 48 to 30 minutes. So that would be your Key Result.
What will you do to make that happen? You may want to hire an extra support manager, streamline processes or implement another approach or initiative.
More Posts
9 Best Advices from Time Management Experts
In our busy world, learning how to manage time well is key. It cuts down on stress and boosts how much we get done. Expert advice can be a road map for anyone...
11 Best Time Management Podcasts for Improved Productivity
In our fast-paced world, managing time well is super important. Many believe it could boost work productivity a lot. So, learning good time management strategies is key. A great way is through podcasts....
8 Ways Medical Students Can Maximize Their Time Management
Learning effective time management for medical students is key in handling the busy life of med school. It’s important to balance study and free time. This helps you grow while staying on top of your...
10 Tips to have a Productive Week
Today, managing our time is more important than ever. Over 90% of adults in the U.S. use up to 18 hours a month on Facebook. That’s like losing two whole work days to...