KPI vs OKR vs KRA: How to make them work

In today’s world of people management, HR professionals often hear about KPI vs. OKR. Both are established ways to measure progress and success. But what do they really mean? And how can you use them to help your team reach business goals?  

Let’s break down the main differences, when to use each, and how they can work together to drive real results for your organization. To make things even more interesting, we’ll throw KRA into the mix. 

KPI vs. OKR: Main differences and when to use each 

OKRs and KPIs help organizations measure progress and track success. Both use clear, measurable targets to show if your organization is moving in the right direction.  

Let’s take a closer look at each one, then go over the main differences of KPI vs. OKR. 

What are KPIs? 

KPIs, or key performance indicators, are signals that show how well your team or company is doing. They track steady progress and help you see if you’re on the right path. KPIs are often used for metrics like: 

• employee turnover rate 
• sales growth 
• customer satisfaction scores 
• absenteeism 

KPIs are best for monitoring ongoing performance. They help you stay on track with your business goals and spot problems early. 

What are OKRs? 

OKRs stand for objectives and key results. This is a goal setting framework that helps teams set ambitious goals and measure progress.  

An OKR has two parts: 

• Objective: A clear, inspiring goal you want to achieve 
• Key results: Specific, measurable outcomes that show if teams are meeting their goals 

For example, an HR team might set this OKR: 

Objective: Improve employee engagement this year 

Key results: 

• Increase engagement survey scores by 10 percent 
• Launch three new team-building programs 
• Reduce voluntary turnover by 5 percent 

OKRs help teams focus on what matters most. They encourage everyone to work toward the same desired outcomes.  

Setting OKRs, for example, can be the starting point when drafting employee development plans. This framework helps employees and managers set clear goals and monitor progress over time. 

Now that we’ve defined KPIs and OKRs separately, let’s see how they compare. 

KPI vs OKR: The main differences 

KPIs are ongoing measures – they're part of business as usual or BAU. They track how things are going for your organization right now. 

OKRs are about setting and reaching ambitious yet realistic objectives. They help set future goals for your people.   

When to use KPI vs OKR 

Use KPIs to monitor regular business activities and stay on track. 

Use OKRs when you want to set ambitious goals, drive change, or improve key areas. 

Many organizations use both. KPIs help you keep an eye on things that are already working well, while OKRs push your team to achieve more. 

When used thoughtfully, OKRs and KPIs can help managers spot hidden talent and create opportunities for growth. These are key steps in unlocking employee potential. 

KPI vs KRA: How they compare 

Let’s add another set of letters to the mix: KRAs, or key result areas. How do they fit in with KPI vs OKR? 

What are KRAs? 

KRAs are broad areas of responsibility for a role or team. They give an overview of what someone is expected to deliver. For example, a sales manager’s KRAs might include: 

• growing revenue 
• building client relationships 
• managing the sales team 

The keyword is overview. KRAs are not as specific as KPIs or OKRs. Instead, they offer a big picture look at what needs to be measured. 

KRAs vs KPIs 

KRAs define what’s important in a job or department, while KPIs measure how well teams are doing in those areas. 

For example, if a KRA is “increase sales,” the KPI could be “monthly sales growth.” The KPI shows if your sales team is meeting the expectations set by the KRA. 

KRAs vs OKRs 

OKRs can also fit inside KRAs. Building on our previous example, an OKR for a KRA of “increase sales” could be: 

• Objective: Grow sales revenue by 20 percent this year  

• Key results: Add 50 new clients, expand into two new markets, increase average deal size by 10 percent 

In a nutshell: 

• KPAs define the scope 
• KPIs provide the measurement 
• OKRs offer both the plan and a way to track progress 

Used together, these elements offer a solid framework for setting goals and measuring success.  

Benefits of using KPIs, OKRs, and KRAs 

It shouldn’t be a matter of choosing KPI vs OKR or KPI vs KRA. It’s possible – and beneficial – to use all three. Each has unique benefits for setting solid goals and targets.  

Using KRAs helps managers and employees focus on a specific theme or area. It also helps clarify roles and expectations. 

OKRs help teams set ambitious yet realistic goals that are aligned to the wider company strategy. Using OKRs encourages innovation and challenge, giving just the right amount of stretch to help people grow in their roles. 

Finally, KPIs help track current performance. A quick look at KPIs helps you spot trends and issues early.  

When used together, KPIs, OKRs, and KRAs can help your organization set goals and improve your workflow, making day-to-day operations more effective. 

How they work together: An HR example 

The KRA defines the focus area, employee engagement. The OKR sets a specific goal and the milestones to achieve it. The KPIs are the numbers tracked (like survey scores and absenteeism) to measure progress and success in that area.  

How they work together: A marketing example 

In this example, the KRA sets the focus on brand awareness. The OKR outlines the specific goal and the actions to get there. The KPIs are the measurable numbers that show if the marketing team is making progress and achieving the desired outcomes.   

Best practices for setting KPIs, OKRs, and KRAs 

Setting KPIs, OKRs, and KRAs can help your team reach business goals and stay focused. But to get the most out of these tools, it’s important to follow some best practices. Here are key tips to help set clear, useful, and motivating metrics for your organization. 

Focus on what matters most 

Don’t try to measure everything. Too many metrics can confuse your team and make it hard to know what matters. Pick the most important KPIs, OKRs, and KRAs that support your business goals. 

Keep these tips in mind: 

• Limit OKRs to a few key objectives per team or department 
• Choose KPIs that truly show progress on the main goals 
• Review the list often and remove anything that isn’t useful 

To help your teams focus, always return to your business strategy and organizational goals as your North Star.  

Align with company strategy 

Your metrics should support your company’s long-term goals. When KPIs, OKRs, and KRAs are aligned with strategy, everyone works toward the same outcomes. 

Start with your company’s big-picture goals. Then, set team and individual metrics that support these goals. Employees should have an idea of the type of organizational structure your company has. This helps people see how their KPIs, OKRs, and KRAs fit into the overall structure. 

Make metrics clear and specific 

Vague goals don’t help teams know what to do next. Every KPI, OKR, and KRA should be easy to understand and measure. 

Encourage writing objectives and key results in plain language. This way, everyone sees and understands what success looks like.  

Involve your teams 

People are more motivated when they help set goals. Involving staff leads to better ideas and stronger buy-in. 

This means: 

• asking for input from different roles and departments 
• encouraging open discussion about what to measure and why 
• making sure everyone understands how their work connects to the big picture 

These actions lead to higher engagement and enthusiasm, resulting in a positive workplace culture. 

Track progress regularly 

Remind your managers and teams to monitor progress. Regular tracking helps everyone spot trends, fix problems early, and celebrate wins. This involves using simple tools or dashboards to track progress in real time.  

Review and adjust as needed 

Business needs change, and your metrics should change, too. Regular reviews help keep your KPIs, OKRs, and KRAs relevant and useful. Schedule check-ins to review progress and discuss results.  

The power of combining KPIs, OKRs, and KRAs 

It’s not about choosing one metric or framework over the others. They are all important tools for tracking progress, setting ambitious goals, and measuring success. When used together, KPIs, OKRs, and KRAs help your organization stay on track and reach its long-term business goals. 

With the right goal-setting framework, your HR team can support your company’s aims and create a workplace where everyone can succeed.  

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