What is the difference and connection between okr and kpi?

The key performance indicator (KPI) is "What does the company want us to do", while OKR is "What do we want to do".

There is not an either-or relationship between the two, and enterprises can use these two sets of tools to achieve better management.

The goal is to set a qualitative time goal (usually a quarter). Key results are presented in the form of quantitative indicators to measure whether the objectives have been achieved at the end of this period.

When the work is in full swing, OKR exists in the company (top vision), the team (inherited and generated by the team, not just a part of personal goals) and the personal level (personal development and personal contribution).

Most goals are usually defined by management, but some goals are from the bottom up, not to increase the enthusiasm of the team. ?

OKR presentations or statements and reports containing questions and answers issued by the company can ensure cross-functional consistency and dependency agreements before finalization.

At the end of the target period, special attention should be paid to evaluating each key result of each target. Different people have different expectations for their goals. Google and Uber suggest that employees should achieve about 70% "OKR" every quarter, which is the key performance data every quarter, while Zynga hopes that employees can achieve 2 or 3 "OKR" every quarter.

Related introduction:

The production process of an enterprise is a process in which workers use labor tools to change their labor objects. Among the three basic elements of enterprise production (labor force, labor materials and labor objects), labor force is the most important factor. Accurate statistics, analysis and prediction of labor productivity indicators are of great significance for enterprises to organize production in an orderly manner, fully develop and rationally use human resources.

The advantages of this method are clear standards and easy evaluation. Its disadvantage is that it is difficult to set standards for simple work; Lack of quantification; Performance indicators are only some key indicators, and we should pay enough attention to the lack of certain evaluation of other contents.

KPI method conforms to an important management principle-"28 principle". In the process of enterprise value creation, there is a "20/80" law, that is, 20% of the backbone personnel create 80% of the enterprise value; Moreover, the "28 principle" also applies to every employee, that is, 80% of work tasks are completed by 20% of key behaviors.

Therefore, we must grasp 20% key behaviors, analyze and measure them, so as to grasp the key points of performance evaluation.