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Applying the OKR model brings more benefits to businesses. But how to convert from existing KPI to OKR?<a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/">Estuary</a> - For years, most companies have used the KPI model. However, as the business grows, the KPI system only meets a satisfactory level because KPI is an indicator of work control but not inspiring or increasing focus.<blockquote>Therefore, many leaders have switched to apply the OKR model. It gains success in the world's largest companies such as Google, Intel, Amazon.</blockquote><figure class="image"><img src="https://api.estuary.solutions/estuary-web-mediafile/file/a283cf59-6731-4f89-a1fa-99f914e06fdb" alt="3 Steps to convert from KPI to OKR (Objectives &amp; Key Results)"></figure><h2 style="text-align:justify;">Differences between KPI and OKR</h2>OKR (abbreviated by Objectives &amp; Key Results) has similarities with KPI. Still, OKR offers several benefits that traditional control processes do not have. The structure of the OKR model includes O - Objective and KR - Key Results to achieve that objective.According to OKR philosophy, governance is not a one-way, top-down assignment but a two-way interaction between leaders and employees, building and committing to achieving a mutual goal through specific key results. In an enterprise, it is crucial for workers to know their abilities and whether they can develop further or not. By setting goals, managers can exploit the potential of their human resources and help employees work with aspirations and be motivated to self-develop.Leaders use OKR to set quarterly and annual goals, which are guaranteed to inspire employees. They will then control and measure each step to achieve the key results. When the key results are completed, the organization is also moving towards its original goal.Read more: <a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/news/32-en-what-are-okrs-5-things-you-must-know-about-management-by-objectives-and-key-results-0795de5c">What are OKRs? 5 Things you must know about Management by Objectives and Key Results.</a>KPI (Key Performance Indicator) is an evaluation system to measure work efficiency through data, ratios, and quantitative indicators, reflecting the performance of organizations, functional departments, or individuals.Organizations often use KPI at many different levels to evaluate their success with a pre-set goal. High-level KPIs will focus on indicators and common goals of the whole business. In contrast, low-level KPIs assess the work performance of process systems, individuals, and departments.Read more: What are KPIs? Guidelines for building KPIs for employeesAccording to the description above, KPI and OKR have quite a few differences. KPI is a measurement method, but OKR is not.A KPI is an apparent number, but that number doesn't explain why or how to get there. For example, an employee is assigned a KPI of $200 million in sales/month, but why the target number is $200 million? And what does that number contribute to the company's big goal, and how to achieve $200 million? Well, the KPI does not explain it. In this respect, OKR does very well, and for the goal to come true, employees need to understand that goal.In an OKR system, the evaluation of Key Results helps to measure the achievement of inspirational goals. Due to such characteristics, the transformation between the 2 methods will be more complicated, not simply copying indicators from KPI.Suppose a company is using a KPI model and wants to switch to OKR. In that case, they will usually only consider KPIs as objectives at first. The complete transition between the two models takes time.<figure class="image"><img src="https://api.estuary.solutions/estuary-web-mediafile/file/d2fc6e8e-aa4e-431a-990d-a2b014a97664" alt="Manage OKRs and KPIs on Estuary Work Management Software"><figcaption>Manage OKRs and KPIs on <a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/services/internal-working-system">Estuary Work Management Software</a></figcaption></figure><h2 style="text-align:justify;">Here are four simple steps of the KPI to OKR conversion process:</h2><h3 class="indent-1" style="text-align:justify;">Step 1: Set objectives</h3>Objectives in OKR are not metrics, so they cannot be copied exactly from KPIs. You need to take a closer look at your current KPIs and place them in the group of inspirational objectives.<h3 class="indent-1" style="text-align:justify;">Step 2: Generate key results from KPI</h3>Once objectives have been established, you can set the KPIs as key results.Make sure there are no more than 3 KPIs for one objective to avoid being overwhelmed. Felip Castro - an OKR expert, advised that each OKR model should have no more than 10 key results. The smaller the number of critical results, the easier it is to understand and implement objectives.<h3 class="indent-1" style="text-align:justify;">Step 3: Identify the key results correctly</h3>The best way to set key results is to use the SMART model to evaluate established goals. Key results should be specific, measurable, achievable, relevant, and time-bound.It would help if you asked the following questions:<ul><li style="text-align:justify;">S (Specific): Are the key results clearly defined and understandable to members?</li><li style="text-align:justify;">M (Measurable): Can the success or failure of key results be measured?</li><li style="text-align:justify;">A (Achievable): Is this crucial outcome achievable in practice?</li><li style="text-align:justify;">R (Relevant): Are these key results significant to the goal?</li><li style="text-align:justify;">T (Time-bound): Have you set a deadline for the objectives to be completed? The usual timeframe for the OKR model is one quarter.</li></ul>Read more: <a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/news/34-en-3-steps-to-identify-the-right-key-results-in-okrs-11feb71d">3 Steps to identify the right Key Results in OKRs</a><h3 class="indent-1" style="text-align:justify;">Step 4: Use a proper monitoring tool</h3>As soon as you start with OKR, you will gradually realize that implementing the OKR model is not easy.In terms of human beings, not every company has the best people like Google. Discipline, culture and commitment, we are still far from the world's leading companies.In terms of method, applying OKR often faces difficulties from setting goals to implementing them. Following the OKR principle is very difficult. What are aspirational Objectives, and are Key Results measurable? One person's KR is often another person's O? But corporations don't have much time for trial and error. They can't wait months or quarters to learn how to apply OKR properly.<blockquote>Therefore, most firms have to apply both OKR and KPI at the same time.And it's time for companies to apply a proper tool to monitor and evaluate the results of these goals in a scientific and unified way.</blockquote><a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/services/internal-working-system">Estuary's Enterprise Work Management Software</a> is a practical goal administration system that meets 6 criteria: consistency, inheritance, linkage, standardized measurement, commitment and ease of implementation. It is the right solution for businesses that are intending to use the OKR model in governance.<figure class="image"><img src="https://api.estuary.solutions/estuary-web-mediafile/file/95d43f73-d0f9-4dc4-80ef-e47c52798c28" alt="App Interface of OKR &amp; KPI tracking on Estuary Work Management Software"><figcaption>App Interface of OKR &amp; KPI tracking on Estuary Work Management Software</figcaption></figure><h3 class="indent-1" style="text-align:justify;">Estuary's Enterprise Work Management Software helps firms build and manage objectives through the following steps:</h3><ol><li style="text-align:justify;">Set up the organizational structure (including departments and teams under the departments), metrics (target measure indicators) and cycle</li><li style="text-align:justify;">Set individual, group, department and company goals: Includes two methods: OKR (measured by Key results) and KPI (measured by specific indicators).</li><li style="text-align:justify;">Manage individual, group and departmental goals</li><li style="text-align:justify;">Update &amp; evaluate objectives: Automated check-in, self-review or review by managers</li><li style="text-align:justify;">Report objective status: Provide metrics in cycle</li></ol><h2 style="text-align:justify;">Summary</h2>With the OKR model, you can even expand your team size by 50 people without worrying about losing or disrupting productivity. It's also more accessible than ever to evaluate what each company member wants and achieves each quarter. Converting from KPI to OKR is not an overnight story. Still, with the help of modern management tools, businesses can build a unified goal system including OKRs and KPIs and measure them accurately.&nbsp;<a target="_blank" rel="noopener noreferrer" href="https://estuary.solutions/contact?msg=Request+Demo+Internal+Working+System&amp;service_id=3">REGISTER NOW ESTUARY WORK MANAGEMENT SOFTWARE</a>&nbsp;

3 Ways to convert from KPI to OKR (Objectives & Key Results)

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In an OKR system, the evaluation of Key Results helps to measure the achievement of inspirational goals. Due to such characteristics, the transformation between the 2 methods will be more complicated, not simply copying indicators from KPI.

3 Ways to convert from KPI to OKR (Objectives & Key Results)

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