OKRs vs KPIs: Which Performance Tracking System Is Right for Your Business?

Confused about whether to use OKRs or KPIs for your business? You’re not alone. As leaders try to improve team performance and hit strategic goals, these two approaches often come up. But which one should you choose?

At Beyond, we’ve helped hundreds of businesses implement effective performance tracking. Here’s a simple breakdown to help you decide which tool to opt for in the OKR vs KPI debate.

What Are KPIs?

Key Performance Indicators (KPIs) are measurable values that show if you’re meeting your goals. Think of them as your business’s vital signs.

Examples of KPIs:
Revenue growth (12% increase)
Customer satisfaction (4.7/5)
Employee retention (95%)
Project completion rate (87%)
Cost per new customer ($45)

KPIs are great for tracking day-to-day performance and keeping operations on track. They answer the question: “Are we hitting our targets?”

What Are OKRs?

Objectives and Key Results (OKRs) combine ambitious goals with specific, measurable outcomes. The Objective is what you want to achieve, while Key Results are how you’ll measure success.

Example OKR:
Objective: Improve our customer onboarding process
Key Results:
Cut onboarding time from 14 days to 5 days
Increase new customer satisfaction from 7.5 to 9.0
Reduce support tickets from new customers by 40%

OKRs push boundaries and drive change. They answer: “Where do we want to go, and how will we know when we get there?”

When to Use KPIs

Choose KPIs when:

1. You need to track daily operations
   KPIs monitor the health of your established processes.
2. You want to maintain standards
   KPIs set clear expectations for quality and efficiency.
3. You work in a regulated industry
   Construction companies, for example, often use KPIs to track:
   • Safety incidents
   • Project completion against schedule
   • Material waste
   • Labour efficiency
   • Quality control pass rates
4. You need clear accountability
   KPIs make it obvious who’s responsible for what.

When to Use OKRs

Choose OKRs when:

1. You’re driving major change
   When you need to transform part of your business, not just maintain it.
2. You want to align teams around big goals
   OKRs connect individual and team efforts to company-wide objectives.
3. You need flexibility with clear direction
   OKRs set the destination but let teams decide how to get there.
4. You’re in a fast-moving industry
   Tech, marketing, and other rapidly changing sectors benefit from OKRs’ adaptability.

Creating an Effective KPI Dashboard

A good KPI tracker should:

1. Be visually clear – Use red/green colour coding to spot issues immediately
2. Show what matters most – Highlight your most important metrics
3. Provide context – Show trends and targets for comparison
4. Be accessible – Everyone should be able to see relevant data
5. Stay current – Data should update in real-time when possible

Beyond’s platform uses a simple “traffic light” system — green means on track, red needs attention, and we avoid yellow because it creates confusion.

Making OKRs Work

If you choose OKRs, follow these tips:

1. Limit your focus – Stick to 3-5 objectives per team per quarter
2. Make objectives inspiring – They should motivate people to stretch
3. Keep results measurable – You must be able to track progress
4. Check in weekly – Regular reviews keep OKRs relevant
5. Set ambitious goals – Aim for about a 70% success rate

OKRs vs KPIs: What Do Different Industries Choose?

While every business is different, we’ve noticed some patterns:

• Construction firms typically prefer KPIs to track safety, efficiency, and compliance. Most of our construction clients use KPI dashboards to monitor project status, budgets, and safety metrics.
• Tech companies often choose OKRs because they need flexibility and innovation.
• Financial services usually use KPIs for risk management but might use OKRs for growth projects.
• Healthcare organisations often use both – KPIs for patient care standards and OKRs for improvement initiatives.

Can You Use Both?

Yes, and many successful businesses do. They use:

• KPIs to run daily operations smoothly
• OKRs to drive innovation and change

For example, a construction company might track KPIs for safety, timelines, and budgets while using OKRs to improve client satisfaction or adopt new technologies.

What Really Matters: Taking Action

The framework you choose is less important than actually using it consistently. The best system won’t help if you don’t follow through.

That’s why Beyond focuses on three essentials:

1. Clarity – Everyone knows the plan
2. Alignment – Teams work together toward common goals
3. Accountability – People complete their assigned tasks

Making Your Decision

When choosing between OKRs and KPIs, ask yourself:

1. Are you maintaining performance or driving change?
2. What do similar businesses in your industry use?
3. Which approach will your team adapt to more easily?
4. Which better supports your long-term goals?

Remember, the goal isn’t perfection – it’s creating a practical system that gets results.

Conclusion: Start Tracking Performance Today

Whether you choose KPIs, OKRs, or both, the most important step is to start tracking performance consistently. Begin with clarity about what matters most to your business, get everyone aligned, and build accountability.

Beyond’s all-in-one platform provides the structure you need to implement either approach successfully. Our system helps turn your strategy into real results.

Ready to improve your performance tracking? Book a demo and use code GOALS for a free 6-week trial plus unlimited training with our strategy experts.