Key Performance Indicator

A Key Performance Indicator (KPI) is a quantifiable metric used to evaluate the ongoing performance of a process, activity, or organization. While KPIs and Key Results may look similar — both are measurable — they serve fundamentally different purposes in a goal-setting framework.

The key difference is that KPIs are health metrics that you monitor continuously (like body temperature), while Key Results are targets you set for a specific period. KPIs answer "How is this area performing right now?" while Key Results answer "What specific change do I want to achieve by when?" For example, "Customer satisfaction score" is a KPI; "Increase customer satisfaction from 7.2 to 8.5 by Q4" is a Key Result.

KPIs and OKRs complement each other well. KPIs help you identify areas that need improvement — a declining KPI might inspire an Objective. Key Results then set specific targets for that improvement. Once the OKR cycle ends, the KPI continues to be monitored. Some practitioners use KPIs as "guardrail metrics" alongside their OKRs to ensure that pushing on one area doesn't inadvertently harm another.