The difference between KPIs and OKRs – and why companies need both

You're sitting in a strategy meeting...

...and everyone in the room has a different idea of how to measure the company's success. The CFO talks about revenue growth, the marketing team celebrates increasing social media reach, while the sales team argues that only deals won really count.

The problem? Without a common structure, measuring success remains a patchwork of isolated figures that neither build on each other nor contribute to the big picture.

This is where KPIs (key performance indicators) and OKRs (objectives and key results) come into play. But what exactly do these terms mean? How do they differ? And when is which method the right one?

What are KPIs? – Measuring performance without losing sight of the goal

KPIs (Key Performance Indicators) are quantitative metrics that make operational performance visible. They help companies measure progress, control quality, and base decisions on facts. The focus is on the “How much have we achieved?”

KPIs answer questions such as:

• How many leads did we generate through campaign X?
• What is the cost per acquisition?
• How is our revenue developing in the current quarter?

These figures are essential for operational control. They provide ongoing feedback on the performance of individual touchpoints, teams, or measures. But KPIs alone are not goals—they are metrics on the way to achieving them.

Examples of KPIs:

• Conversion rate: 4.2%
• Number of qualified leads: 150 per month
• Customer churn rate: 5%
• Contribution margin per product: $27

Contextualization is critical here: KPIs only are effective when they are linked to strategic goals – and this is exactly where OKRs come into play.

What are OKRs? – Formulate goals that set the course

OKRs (Objectives and Key Results) are a framework for strategic goal setting. At their core are ambitious but realistic objectives – qualitative statements about what a company, team, or individual wants to achieve. These are linked to key results that make it concrete and measurable when the goal has been achieved.

An OKR always consists of:

• Objective: A clearly formulated goal (e.g., “Increase our brand awareness in the IT industry”)
• Key Results: 2–5 measurable results (e.g., “Achieve 1,000 downloads of the white paper,” “10 publications in trade media”)

OKRs promote focus, clarity, and alignment across teams. They are particularly suitable for change processes, realignments, or growth projects. Unlike KPIs, OKRs are not necessarily achievable—they are challenging and provide direction.

Examples of OKRs:

• Objective: “Open up new markets”
• • KR1: “Prepare market entry in 3 new countries”
  • KR2: “Establish local partnerships with 5 key accounts”
• Objective: “Significantly increase product quality”
• • KR1: “Reduce support tickets by 30%”
  • KR2: “Increase Net Promoter Score to > 60”

The difference between KPIs and OKRs – simply explained

In many companies, the difference between KPIs and OKRs is not clearly communicated. The two terms are often used synonymously or played off against each other. However, they fulfill different roles in the management of a company – and that is precisely their greatest common advantage. Those who know the difference and work consciously with both can enable operational excellence and strategic progress at the same time.

KPIs are used to measure the current performance of a company or a sub-area. They serve to analyze developments, control measures, and validate results. OKRs, on the other hand, are tools for setting goals and focusing. They help to break new ground, set priorities, and make ambitious visions for the future tangible.

To clearly distinguish between these roles:

KPIs

• Purpose: Measure the success of processes and activities.
• Key question: How are our key figures developing?
• Description: Key performance indicators show the performance level and whether targets are being achieved. They can be used for all areas of a company.
• Focus: Past, present, and future performance.
• Metrics: Can be measured in various units (e.g., revenue, customer satisfaction in %, number of X).
• Examples: Revenue per customer, conversion rate, cost per lead.

OKRs

• Purpose: Set the company's goals for a specific period of time.
• Key question: What do we want to achieve in the next 3 months?
• Description: Objectives and Key Results are a management method for defining and tracking goals and the associated key results. They focus on qualitative and quantifiable results.
• Focus: Future (What do we want to achieve?).
• Metrics: Consist of an objective (qualitative) and key results (quantifiable).
• Examples: Objective: Design an excellent customer journey; key results: Reduce the average processing time for inquiries by 20%, increase customer satisfaction by 15%.

KPIs thus form the basis for analyzing performance and making optimizations. OKRs, on the other hand, open up new ways of thinking and release energy for change in a targeted manner. In a functioning system, OKRs are the goals and KPIs are the navigation points along the way.

When to use KPIs – when to use OKRs? The right application in a business context

One of the most common questions in practice is: When should I use KPIs and when should I use OKRs? The answer depends on the purpose of the control—whether you want to measure progress or set a direction. While KPIs focus on review and control, OKRs are based on outlook and transformation. Successful organizations understand how to use both methods in a differentiated yet interlinked way.

KPIs are particularly valuable where processes are established and continuous monitoring is required. They provide an objective basis for decisions, help identify deviations at an early stage, and ensure operational efficiency. In areas such as performance marketing, sales, and customer success, KPIs provide the transparency needed for daily management decisions.

OKRs, on the other hand, reveal their strengths where change, innovation, or new priorities are required. They provide managers and teams with a framework for formulating ambitious goals and systematically supporting their implementation—without getting bogged down in operational details.

KPIs should be used when:

• existing processes need to be measured reliably
• operational targets need to be tracked and optimized
• The focus is on efficiency, quality, and reliability
• Real-time monitoring is necessary

Example: “Number of demo requests per week” – a KPI for measuring the effectiveness of lead nurturing campaigns.

OKRs should be used when:

• Strategic initiatives are being planned or pursued
• A cross-functional alignment is necessary
• Teams need to work in an inspired and prioritized manner
• Change or growth needs to be managed

Example: “Double our brand awareness in the DACH region by the end of the year” – a clear goal with several key results for implementation.

The key lies in the combination: While KPIs form the basis for data-driven optimizations, OKRs provide orientation for forward-looking development.

How cosmos integrates KPIs and OKRs – one platform, two levels of control

In many companies, KPIs and OKRs exist side by side – often in separate tools, with little contextual reference and even less strategic connection. This is exactly where cosmos comes in. The Strategic Intelligence Platform brings both control systems together in a coherent, modular environment. What makes it special is not only the technical integration, but also the consistent connection with target groups, touchpoints, and strategic positioning.

cosmos does not think in silos, but in chains of effects. KPIs are not only measured, but also placed in the context of the company's goals. OKRs are not only defined, but also placed where they have an impact – directly on the activities, personas, or touchpoints they affect.

1. KPI Universe – operational clarity through networking

The KPI Universe is not a dashboard in the traditional sense. It is a visual, interactive network of all relevant performance indicators. Every touchpoint, every key event, and every target group is linked to a KPI that makes its effectiveness and relevance measurable.

What makes it special is that cosmos makes impact chains visible. You can see which activities really contribute to the business goal – and which resources are tied up without having any impact. This clarity is the basis for informed optimization.

2. OKR Notes System – strategic focus with responsibility

The OKR Notes System in cosmos enables clear goal setting at all levels – from the overarching corporate vision to individual activities. cosmos also records how consistently goals are pursued, achieved or adjusted – a real game changer for leadership transparency.

Goals that exist for too long, are frequently adjusted or missed are made visible. This helps managers set realistic goals and assign responsibilities clearly – without unnecessary micromanagement structures.

3. TargetLens™ Workflow – KPIs and OKRs in context

The TargetLens™ workflow links both control levels with each other – contextually, target group-oriented, and visually comprehensible. Each TargetLens™ represents a target group. Within this structure, KPIs and OKRs are anchored in the right places, such as at each individual touchpoint. This creates an integrated, data-based control system with maximum clarity.

Fun fact: OKRs at Google and Intel – from silicon to strategy

The history of OKRs does not begin in a start-up, but at a semiconductor company: Intel. In the 1970s, Andy Grove introduced the OKR system to bring clarity to a rapidly growing company. John Doerr, then an employee at Intel, later brought the system to Google, where it contributed significantly to the development of products such as Gmail, Chrome, and Android.

Today, companies around the world rely on OKRs – from LinkedIn to BMW, from NGOs to government agencies. What do they have in common? The desire to achieve ambitious goals in a structured and transparent way – beyond traditional annual targets or endless project plans.

Conclusion: Use KPIs and OKRs together – for clarity, strategy, and impact

Understanding the difference between KPIs and OKRs allows you to rethink corporate management. KPIs provide operational control, OKRs provide strategic direction. But it is only when they are combined that they deliver sustainable control, measurable progress, and true agility.

cosmos brings both together. The KPI Universe and the OKR Notes System are not separate tools, but part of a well-thought-out framework for the data-driven optimization of brand, marketing, and sales.

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