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What is the difference between KPIs and OKRs?

An example of an AI chatbot conversation about KPIs and OKRs in performance management.

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You

What is the difference between KPIs and OKRs?

MagicBuddy
MagicBuddy

KPIs (Key Performance Indicators) are metrics used to measure the success of an organization, while OKRs (Objectives and Key Results) are a goal-setting framework that defines objectives and tracks their outcomes.

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You

Can you give me examples of each?

MagicBuddy
MagicBuddy

Sure! An example of a KPI could be 'Increase sales by 20% this quarter.' An OKR might be 'Improve customer satisfaction with a key result of achieving a 90% satisfaction score in surveys.'

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You

Which one should I use for my team?

MagicBuddy
MagicBuddy

It depends on your goals. Use KPIs for tracking performance metrics and OKRs for setting and achieving strategic objectives.

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You

How often should I review them?

MagicBuddy
MagicBuddy

KPIs are typically reviewed monthly or quarterly, while OKRs are often reviewed quarterly to align with the goal-setting cycle.

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