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OKRs vs KPIs: What’s the difference?

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OKRs vs KPIs: What’s the difference?

OKRs vs KPIs explained for African teams: clear differences, when to use each, examples, and a simple setup process you can run this quarter.

Oba Adeagbo

Marketing Lead

February 19, 2026

5 Mins read

You are in a cramped meeting room (or a loud Zoom), trying to close the month.

Ops says, “Our KPI is to launch the new dispatch flow by Friday.”

Finance says, “No, KPI means revenue per customer.”

Someone brings up OKRs, and the room goes quiet because nobody wants another framework.

I have been in that meeting. It usually ends with two spreadsheets, three definitions, and zero clarity.

OKRs vs KPIs: what’s the difference?

KPIs (Key Performance Indicators) are the small set of metrics you watch to understand whether the business or a function is healthy. They are “how are we doing” signals. You monitor them continuously and you do not change them every week. A standard definition is that KPIs are quantifiable measures of progress toward a desired result. (KPI Institute)

OKRs (Objectives and Key Results) are time-bound goals designed to create change. They help you focus effort on outcomes you want to improve in a specific period, often quarterly. Google’s guidance frames OKRs as a way to set goals, measure progress, and communicate priorities, including a scoring approach for key results. If you only remember one thing:

  • KPIs = health metrics
  • OKRs = change agenda

The easiest mental model (direction vs health)

I use this mental shortcut with managers:

  • KPIs tell you if you are winning or bleeding.
  • OKRs tell you where you are pushing next.

Example:

  • KPI: “On-time delivery rate”
  • OKR objective: “Make deliveries predictable in Lagos traffic”
  • Key results: “Reduce late deliveries from 28% to 12%” and “Cut dispatch-to-door time by 20%”

Same domain. Different job.

A quick note on measurement and time horizons

  • KPIs tend to be stable and tracked monthly or weekly.
  • OKRs tend to be quarterly (or 6–8 weeks in very fast teams) and are expected to be reviewed frequently.

Also, OKRs usually include a small number of key results that are measurable. The point is specificity. Decades of goal-setting research shows that specific, difficult goals outperform vague “do your best” goals in driving performance.

That research is not saying “make goals brutal.” It’s saying “make goals unambiguous.”

Why the OKR vs KPI distinction matters (especially in African operations)

You already have constraints your peers in richer markets often ignore:

  • Data is noisy (POS offline days, manual reconciliations, inconsistent CRM hygiene).
  • Teams are stretched (one ops manager covers three cities).
  • Culture can punish transparency (people hide bad numbers to avoid blame).
  • Documentation is thin (handover notes live in WhatsApp).

Those constraints matter because OKRs and KPIs fail for different reasons.

When you confuse them, performance conversations get political

If you treat a KPI like a goal, you get this:

  • “Your KPI is customer churn.”
  • “But churn is influenced by pricing, product bugs, and FX-driven cost changes.”

Now the review turns into a debate about fairness.

Organizational KPIs can be clear at the top, but it is often less clear what “good performance” means for individuals and teams, and that clarifying how KPIs cascade matters.

In practice: KPIs should inform performance, but they should not be the only performance story.

The hidden costs: misalignment, vanity tracking, spreadsheet chaos

Here’s what I see in growing African companies:

  • Leadership wants a dashboard.
  • Managers copy what they have seen on LinkedIn.
  • Everyone creates “KPIs” that are actually tasks.
  • Two months later, the numbers are stale and nobody trusts them.

Then you end up “managing the spreadsheet,” not the business.

Constraint acknowledgements (real ones)

  1. Time constraint: You do not have bandwidth for a 40-metric framework.
  2. Unclear KPIs: Your strategy might be changing monthly because the market is volatile.
  3. Documentation constraint: Your process knowledge is locked in a few people’s heads.

Good OKR and KPI design respects those constraints. It aims for fewer metrics, clearer owners, and a review cadence that fits reality.

Common mistakes people make with OKRs and KPIs

1) Treating KPIs like goals

If your KPI is “Net revenue retention,” that’s not a goal you assign to one team. It is a health outcome influenced by Sales, Customer Success, Product, and Pricing.

Use KPIs to detect a problem. Use OKRs to attack a problem.

2) Writing OKRs like task lists

Bad key result: “Launch new website.”

Better: “Increase demo conversion rate from 1.8% to 3.0%.”

Tasks belong in your project tracker. Key results belong in your outcome tracker.

3) Cascading everything and creating bureaucracy

Many teams try to cascade OKRs down every layer, then drown.

John Doerr’s OKR popularity is partly because it gives teams a clear method to set and pursue goals, but the method still needs judgment about scope and simplicity. 

For many African SMEs, “company OKRs + department OKRs” is enough. You do not need five levels.

4) Metric overload and “dashboard theater”

If everything is a KPI, nothing is.

A KPI set should feel slightly uncomfortable in how small it is. That discomfort is focus.

5) Ignoring gaming risk

People will optimize what you measure.

If your KPI is “calls made,” you get calls. Not necessarily deals.

If your OKR key result is “close 50 deals,” you may get rushed, low-quality deals.

This is why you pair outcome measures with quality checks and narrative evidence.

A step-by-step way to set OKRs and KPIs that work together

Step 0: Pick the decision you want to improve

This is where teams get stuck. They start with a framework instead of a decision.

Ask:

  • What decision will leadership make with these numbers?
  • What behavior do we want to change in the next 6–12 weeks?

Examples of decisions:

  • “Do we expand to a second city this quarter?”
  • “Do we invest in retention or acquisition?”
  • “Do we change our onboarding flow?”

Step 1: Lock your “business health” KPIs

Choose 5–9 KPIs total for the business, then 3–6 per function.

Typical business-level KPIs (pick what matches your model):

  • Revenue growth rate
  • Gross margin
  • Cash conversion cycle (or burn multiple for venture-backed teams)
  • Customer retention or churn
  • On-time delivery or SLA hit rate (if operations-heavy)
  • Quality: defect rate, refunds, chargebacks

Use credible definitions. Even general business references emphasize that KPIs are quantifiable measures used to evaluate performance against objectives and targets.

Constraint acknowledgement: If your data is messy, start with KPIs you can measure reliably today. A “perfect KPI” that you cannot compute is theater.

Step 2: Write 1–3 OKRs that move those KPIs

Now pick the KPI that matters most this quarter and set OKRs around it.

A practical pattern:

  • Objective: directional, human-readable, outcome-focused.
  • Key results: 2–4 measurable changes.

Example (logistics company):

  • Objective: “Make delivery predictable for repeat customers.”
  • Key results:
    • “Increase on-time delivery from 72% to 85%.”
    • “Reduce failed deliveries from 14% to 8%.”
    • “Cut customer complaints per 1,000 orders from 22 to 12.”

Notice: the KPI is “on-time delivery.” The OKR is the quarterly change plan.

Step 3: Define owners, cadence, and evidence

For each KPI and OKR:

  • Owner (one name)
  • Cadence (weekly check-in, monthly review)
  • Evidence (where the number comes from, what system, what report)

Documentation constraint acknowledgement: If you don’t write the evidence source, you will relive the same argument every month: “Which spreadsheet is correct?”

Step 4: Review rhythm and how to avoid gaming

A simple rhythm that works in many African SMEs:

  • Weekly: 20 minutes, OKR progress and blockers
  • Monthly: KPI health review and decisions
  • Quarterly: OKR scoring, learning, reset

Google’s OKR guidance includes scoring and emphasizes measurement discipline.

To reduce gaming:

  • Pair “volume” metrics with “quality” metrics.
  • Require one short narrative: “What changed, what we tried, what we learned.”
  • Audit definitions quarterly.

Where tools actually help (without becoming the point)

If you are doing this in spreadsheets, it works at 10 people. It gets fragile at 80.

This is one place a lightweight system helps. For example, Talstack’s Goals module is built to align goals at company, department, and individual levels, and its Analytics helps you see progress without manually chasing updates. That matters when managers are busy and KPI definitions keep drifting.

I still tell teams to start simple. The tool should remove friction, not add process.

OKRs Vs KPIs- Comparison

Dimension KPIs OKRs
Primary purpose Monitor health and performance Drive focused change in a time period
Time horizon Ongoing (weekly, monthly) Time-bound (often quarterly)
Typical wording “What is the current level?” “What improvement will we achieve?”
Good when You need visibility and control You need alignment and momentum
Common failure mode Too many metrics, low trust in data Turn into task lists or politics
How to review Track trends, investigate anomalies Weekly progress, quarterly scoring and learning


OKRs Vs KPIs- Examples

Function Example KPIs (health) Example OKR (change for the quarter)
Sales Pipeline coverage, win rate, average sales cycle Improve win rate from 18% to 25% by tightening qualification and proposal turnaround time
Operations On-time delivery, cost per order, incident rate Raise on-time delivery from 72% to 85% by improving dispatch logic and addressing top 3 failure modes
Customer Support First response time, resolution time, CSAT Reduce resolution time by 30% without dropping CSAT below 4.3
HR Time to fill, regrettable attrition, onboarding completion Cut time-to-productivity for new hires from 8 weeks to 6 weeks using structured onboarding

Practical tools: examples, a quick checklist, and copy-paste scripts

How I’d do it in a real African team (minimal fuss)

If you are starting from scratch:

  • Pick 6 business KPIs
  • Pick 3–5 KPIs per function
  • Pick 1–2 company OKRs
  • Pick 1 OKR per function max

Then run a clean weekly cadence.

If you want a tool-supported version, Talstack can carry this workflow without spreadsheets: Goals for alignment, Analytics for progress visibility, and Performance Reviews to connect outcomes to growth conversations.

Quick Checklist (near the end, on purpose)

Quick Checklist

  • We can define “KPI” and “OKR” in one sentence each.
  • We have fewer than 10 business KPIs.
  • Every KPI has a named owner and a data source.
  • We have 1–3 OKRs for the quarter, not 12.
  • Each OKR has 2–4 measurable key results.
  • Key results are outcomes, not tasks.
  • Weekly check-ins exist and take under 25 minutes.
  • We wrote down metric definitions to avoid future arguments.
  • We included at least one quality metric to reduce gaming.
  • We decided how OKRs affect performance reviews (lightly, not mechanically).

Copy-paste scripts

Script 1: When someone calls everything a KPI

“Quick reset. A KPI is a health metric we monitor continuously. A key result is a quarterly change we are trying to achieve. Which one are we talking about?”

Script 2: Manager setting an OKR with a team lead

“I want us to pick one outcome to improve this quarter. If we nail it, what becomes easier for customers or for ops? Now, what would we measure weekly to know we are moving?”

Script 3: Exec message to reduce metric overload

“We are cutting our dashboard to the few numbers that change decisions. If a metric does not influence a decision, it is not a KPI. Track it locally if you need it.”

Script 4: The “data is messy” acknowledgment (without shaming anyone)

“We are going to start with metrics we can measure reliably today. If a metric is important but unmeasurable, we will create a 2-week plan to fix the data source before we judge performance with it.”

FAQs (integrated into real decisions)

Should a startup use OKRs or KPIs?

Both, but small.

Startups need a tiny KPI set to avoid delusion. Then one or two OKRs to focus. I would rather you track 6 KPIs reliably than 25 KPIs inconsistently.

Can OKRs replace KPIs?

Not really.

OKRs are a change mechanism. KPIs are monitoring. Atlassian frames KPIs as ongoing “vital signs” that track business health, which matches how most operators use them. 

What’s a good number of OKRs per team?

Common answer: 3–5.

Real answer: often 1–2 for teams with heavy operational load. If you are running retail outlets, field ops, or logistics, too many OKRs becomes fantasy planning.

How do you handle OKRs vs KPIs in performance reviews?

Lightly.

Andy Grove’s view, summarized in an OKR book excerpt, is that OKRs should not be treated like a legal document used as the sole basis for performance reviews.

Use OKRs as evidence and learning, alongside role expectations, competencies, and peer feedback. If you want structure, that’s where a system like Talstack’s Performance Reviews plus 360 Feedback and Competency Tracking can keep it fair without turning it into “who had the easiest metrics.”

What if our KPIs are unclear because strategy changes a lot?

Then your first OKR might be about clarity.

Example objective: “Create a measurable operating model for the next growth phase.”

Key results:

  • “Agree on 6 business KPIs with definitions and owners.”
  • “Publish weekly reporting cadence and dashboard.”
  • “Run 8 weeks of consistent KPI reviews.”

It sounds boring. It is also usually the highest leverage work.

What if we do not trust our data?

Start with a “data trust ladder”:

  • Tier 1: Numbers you trust (use them now)
  • Tier 2: Numbers you can compute but do not trust (fix definitions)
  • Tier 3: Numbers you cannot compute (fix systems)

Then decide: no Tier 2 or 3 numbers should drive compensation decisions.

AIHR’s KPI resources for HR teams are useful for examples, but your first job is still definition and data discipline. 

OKRs vs KPIs in remote or distributed teams?

Remote teams need two extra things:

  • Clear owners
  • Written definitions

If you do not write definitions, you will argue in Slack forever.

This is where goal-setting research is still relevant: specificity reduces ambiguity about what is to be attained.

Close with one next step

Open a doc and write:

  1. Your top 6 business KPIs (with definitions and owners).
  2. One OKR for the next quarter that moves the most important KPI.

If you want, you can run that OKR in Talstack Goals and track adoption with Analytics, then connect the results to your next Performance Reviews cycle so this does not die as “another initiative.”

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