There is often confusion around the differences between Key Performance Indicators (KPIs) and Key Results (KRs). Below is an explanation of the differences, when you should use one over the other, as well as a visual you can share with your team to help create more clarity around the role of each in the strategic planning process.
Key Performance Indicator (KPI)
KPI stands for Key Performance Indicator, which is a measurable metric that is reviewed on a regular basis. These metrics are ongoing, and are indicators or signals that demonstrate success and health for your team.
Some example KPIs include:
- Annual Recurring Revenue
- Churn Rate
- Average Contract Value
- Net Promoter Score
Key Result (KR)
Key Results measure the success of a given objective. These metrics are time bound, specific, and designed to contribute to the overall outcomes of the business. Key Results are reviewed regularly, end when a specific objective ends, and are revisited on a quarterly basis.
Some example Key Results (KRs) include:
- Increase $12M Pipeline
- Deliver 25 QBRs
- Launch new feature
- Drive 10,000 unique page views
When To Use KPIs and Key Results
KPIs often measure the success of company-level objectives, while Key Results contribute to the larger KPIs, and are measured at a team level.
Strategic Planning as a Competitive Edge
KPIs and Key Results both have a place in a successful strategic planning framework. When in doubt, come back to the above visual to determine the difference in KPIs and Key Results when defining your own.
Are you interested in learning more about how today’s leading companies are leveraging their Strategic Planning process as a competitive edge?
Unlike Strategic Planning of the past, today’s Strategy and Operations leaders are evolving to meet the needs of their company. Rather than a static, manual process that feels more like checking a box, Elate can help evolve Strategic Planning to be a dynamic, real-time process that serves as a competitive advantage.
Our team would love to spend some time understanding what Strategic Planning looks like for your company today, and how we can help take it to the next level. Reach out to a member of our team, and we’ll be in touch today to schedule time to share how Elate can help make Strategic Planning a competitive edge.