1% Better With Kris is a blog/video series with the CEO of BetterWorks, Kris Duggan. The title references one of BetterWorks’ core values to strive to be “1% Better every day.” In each post, Kris tackles a common question or theme that customers have and demonstrates how he and the employees at BetterWorks addresses them.
In today’s video, I discuss how OKRs (Objectives and Key Results) can work in partnership with KPIs (Key Performance Indicators).
Like Peanut Butter and Chocolate
KPIs and OKRs actually go really well together. First, let’s define what a KPI is. Simply, KPIs are success metrics, an outcome or measurement of your work. OKRs are your goals or what you are going to do to move the needle on that KPI. Let’s take a doctor’s visit as an example. KPIs for your health may be your cholesterol level, blood pressure, etc. These numbers tell you how you’re doing health-wise. However, they’re not a way to tell you how to improve those numbers. This is where OKRs come it. If your cholesterol level is too high, you might set OKRs to bring that level down with an Objective to “Lower my cholesterol level” and Key Results of “Run 3 times a week”, “Eat 5 healthy lunches a week”, and also your KPI of “Lowering your cholesterol level by 10 points”.
As you can see here, KPIs are part of your key results. You’ll find that as you define your OKRs at the company and team levels, KPIs will organically emerge as you define how you measure success on your objectives.
The BetterWorks feature of setting Range metrics on your key results is really suited for KPIs. In the platform you can set a target, as well as specify what happens when that number is outside of the target. Let’s go back to our cholesterol example, your target of 100 mg/dL is Green. If it’s between 100 mg/dL and 139 mg/dL, you might want your KPI flagged as yellow, and anything greater that 139 mg/dL is red. For more information on using ranges, see the following article: Setting range goals and milestones.
Together, your KPIs and real-time OKR progress provide a comprehensive view to your company on on what’s important and what you’re doing to move the needle to reach your goals.
If you have ideas for future 1% Better With Kris videos, I'd love to hear them. Please leave a comment below.