The difference of Metrics, KPI’s and OKR’s

In Summary:
- Metrics track data.
- KPIs monitor success against strategic goals.
- OKRs help define and measure goals.

Metrics are used to collect and track data and can be tied to external data sources.
Unlike KPIs, metrics are not derived by calculating or combining other data points.

- A quantifiable measure used to track performance, progress, or trends.
- Metrics are neutral and can describe any aspect of a process or system, often without specific goals.
- They are data points used for analysis, not tied to specific outcomes.
- Example: Daily active users (DAU), website traffic, bounce rate, or average response time.

- A metric tied directly to critical business outcomes, used to evaluate success or performance against specific goals.
- KPIs are select, focused metrics that indicate how well an individual, team, or organization is performing against strategic objectives.
- Often tied to business-critical areas.
- Example: Revenue growth rate, customer retention rate, profit margin, or cost per acquisition.

- Framework to set ambitious goals and track progress toward achieving them.
- Components:
- - Objective: A qualitative, inspiring goal to be achieved.
- - Key Results: Measurable outcomes that indicate progress toward the objective.
- Scope:
- Focuses on what you want to achieve (Objective) and how to measure progress (Key Results).
- Usually set at a team or organizational level.
- Example:
- - Objective: Improve customer satisfaction.
- - Key Results:
- 1. Increase Net Promoter Score (NPS) from 70 to 85.
- 2. Reduce customer churn rate from 10% to 5%.
- 3. Achieve a 90% resolution rate on customer support issues within 24 hours.