How do KPIs contribute to organizational performance?
I help founders scale their business, brand and audience | Top 10 LinkedIn Creator Worldwide & #1 Finance LinkedIn Creator Globally | Founder @ Wild Capital | ex-Goldman | LSE Alumnus
95% of companies fail to measure their performance well: As you don't want to be part of this statistic, read on. Various methods exist for measuring progress and performance: Such as objectives, targets, metrics, and indicators. Among these, OKRs and KPIs are especially widely used in the corporate world But they serve different purposes: Let me share and explain the key differences between OKRs and KPIs. KPIs (Key Performance Indicators) show how well an organization performs. They are often part of Balanced Scorecard systems, offering insights into success and areas for improvement. OKRs (Objectives and Key Results) measure progress toward specific goals. They originated in the 1970s and gained popularity through Google. Unlike KPIs, OKRs are dynamic, diverse, and focus on achieving specific outcomes. Both KPIs and OKRs serve distinct purposes: KPIs manage performance, while OKRs manage progress. Effective organizations use both. Consider leveraging both types of indicators for your strategy! P.S. Do you use both types of indicators? Adapted from Jeroen Kraaijenbrink. 📌 Want a high-res PDF of this? 1. Just follow me (Igor Buinevici). 2. Subscribe to my free newsletter at WildCapital.co. Receive this PDF (and 15+ others) directly in your welcome email!