I have found that KPIs are a useful addition to an OKR framework.
Objectives are usually big and ambitious, but need to be pinned down using Key Results. Key Results are the definition of success for an Objective.
However, it’s often the case that there are many ‘numbers’ that affect the Key Results. In advance it is very difficult to know which combination of such metrics is the right one to target.
For example, if a KR is to increase sales from £70k to £100k of product X, you can break this down into various other KPIs - traffic, inquiries, conversion rate, AOV etc
In many cases these metrics can’t be hard coded into a KR, as the sweet spot for the business is unknown - and ultimately we don’t care which combination brings us to hit our KR.
So KPIs allow us to play with the next layer down from KRs, setting and revising targets for the constituent numbers that ultimately drive a KR.
Note: KRs should not change frequently, but KPIs can - with testing, iteration, and new information.
Objectives are usually big and ambitious, but need to be pinned down using Key Results. Key Results are the definition of success for an Objective.
However, it’s often the case that there are many ‘numbers’ that affect the Key Results. In advance it is very difficult to know which combination of such metrics is the right one to target.
For example, if a KR is to increase sales from £70k to £100k of product X, you can break this down into various other KPIs - traffic, inquiries, conversion rate, AOV etc
In many cases these metrics can’t be hard coded into a KR, as the sweet spot for the business is unknown - and ultimately we don’t care which combination brings us to hit our KR.
So KPIs allow us to play with the next layer down from KRs, setting and revising targets for the constituent numbers that ultimately drive a KR.
Note: KRs should not change frequently, but KPIs can - with testing, iteration, and new information.