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The difference between Metrics, KPIs & Key Results
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- Опубликовано: 7 авг 2024
- Metrics, Key Results and KPIs are indispensable tools for result-driven organisations. They have similar characteristics, but aren't all the same and shouldn't be confused. Find out the differences.
Also check out the following blog posts: www.perdoo.com/blog/the-diffe...
The anatomy of a KPI: www.perdoo.com/blog/the-anato...
The anatomy of a Key Result: www.perdoo.com/blog/what-is-a...
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About Perdoo
Perdoo is a goal management platform that helps organizations bridge the strategy-execution gap by bringing their strategy, people and goals (namely OKRs & KPIs) onto a single platform. By doing so Perdoo doesn’t only help organizations achieve results that truly matter to them, it also helps improve transparency, alignment and overall focus. To learn more about us, head over to www.perdoo.com
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You'll find our latest insights and resources (including an online introduction to OKR, an eBook How to write great OKRs and guides full of example goals) on our resources page: www.perdoo.com/resources/
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Metrics are like rulers for your business-they help you measure how well you're doing.
Key Performance Indicators are like signposts that show you if you're on the right track with your goals.
Key Results are like your GPS-they help you navigate towards your objectives by giving you specific targets.
Love it!
This was very helpful and easy to understand and remember. thanks!
Wonderfully explained! Thanks so much
The Best video for beginners to understand KPI's & Metrics
Hi Ravindran,
Happy to hear our video has been helpful! We publish content regularly-stay tuned for all the latest insights on OKR, KPI, goals and strategy execution.
Best,
The Perdoo Team
Excellent Explanation!!!!
Can't praise this enough. Many thanks...
very helpful! thanks for this.
Hi there, happy to hear you’ve enjoyed our video. We publish on our RUclips channel and blog (www.perdoo.com/resources/) frequently-stay tuned for all our new content!
Excellent contribution. Thanks a lot.
PD: It would have been great an example with the three measures (i.e. Metrics, KPI and Key results).
Hi John,
Happy to hear you've enjoyed our content!
The blog articles mentioned in the description provide you with examples of KPIs and Key Results. We hope that helps!
Best,
The Perdoo Team
I read the article, there is no example !!!
thank you!
This is very helpful thank you
loved the explanation
Hi dears
Kindly I confuse in one thing as follows .
Kpi is used at operational or at tactical level ?
When I use big data technology to create predictive model AM I use results as benchmarking or as performance indicator to compare between actual results and target at operation or at tactical level ?
Thank you for your valuable reply in advance
Thanks!
What about the term performance indicators?
How do you differentiate Start value and current value in this video?In KPI, you are saying CURRENT value as start value and adding Target value. However, in KR, you including all three current, start and Target. How and why? Please answer me either in this chat or as a video. Appreciate your commitments!
Thank you.
Very helpful, thank you very much! I have a question, although I don't know if you can help me. For my bachelor thesis, I have to evaluate a company and calculate important KPIs. I thought I would divide up the following points like this: Earnings indicators (EBIT, ordinary operating result, EBT), then under profitability indicators (ROI,...) liquidity indicators and cash flow.
However, my professor recommended that I simply subdivide this under Cash Analysis, Profit Analysis and Strategic Analysis. Unfortunately, I can't find anything on the Internet that I can calculate under Cash Analysis, for example, and I don't want to do anything wrong. I would be very grateful for your help!
Hey, thanks for this video. Very clear. I have a question. Can you suggest me a video about setting good annual objectives?
Hi Jens,
At Perdoo we believe Annual OKRs can create friction in an organization’s OKR program. Annual OKRs live between Strategic and Quarterly OKRs-they are usually too short-term to provide meaningful direction and too long-term for people to actively work on them. Due to this, they tend to limit agility in today’s ever fluctuating market. This article explains why working with Annual OKRs isn’t always a good idea: www.perdoo.com/blog/why-you-should-stop-working-with-annual-okrs/.
However, to get a better overall understanding on how to set the right OKRs, our resource How to write great OKRs can be a good place to start: www.perdoo.com/how-to-write-great-okrs/.
I hope that helps!
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This is very helpful. Do you have samples on how to generate KPI in the Process and Key results as well? We need to measure our indices in semiconductor.
Hi Minotchka,
Happy to hear our video has been helpful!
Please take a look at our Resources hub (perdoo.com/resources), we have a large array of resources that can point you in the right direction when setting KPIs and OKRs.
Best,
The Perdoo team
What is the difference between Current Value and Start Value in Key Results?
So many companies use this the wrong way. Instead of using it as data to analyse and resolve a challenge, they use it to enforce ridiculous threats just to pass a certain failing KPI, especially in 3rd party call center companies.
How do you create KRA & KPI to measure how trainings contribute to business performance?
Hi jetchico,
Unfortunately, we're not able to answer individual questions like these. We do take questions like yours into account when creating new videos.
If you need immediate help with your question, have a look at our Resources hub (perdoo.com/resources) or Perdoo Coaching (perdoo.com/pricing/?t=coaching). Please do note that our coaching services are only available to customers of our software.
Kind regards,
The Perdoo team
Sir I have a question on kpis, you mentioned that it also has target value. Where will the target value come from? Is there a standard for that or it will depend on the one who'll measure it?
Hi Montgomery, a target value simply defines the value you'd like to achieve for a specific KPI - and these are specific to your team or org. You can of course use industry benchmarks or your past actual values (ie. if you want to achieve a higher target this month as compared to last month) as inspiration.
Here's our Ultimate Guide to KPIs for further reference: www.perdoo.com/kpis/
Hope that helps!
- The Perdoo Team
I have been struggling to come up with correct OKR for my HR department. Our CEO insists each department head to come up with one objective and 3 key results. Due to financial crisis we have been facing, decide to come up with achieve HR cost optimization or cutting sister for this quarter. But the issue can’t know how to quantify my key results . We are using your software Perdo. Any advise for me in this particular subject and if you have some examples specially for HR . Thanks
Hi Ali,
We understand that given the current circumstances, realigning your goals is key in achieving your organization's strategy. Here are a few resources that can point you and your team in the right direction in establishing what matters most at the moment and help set goals accordingly:
How to write great OKRs: www.perdoo.com/how-to-write-great-okrs/
The ultimate guide to OKR: www.perdoo.com/the-ultimate-okr-guide/
The anatomy of a Key Result: www.perdoo.com/resources/what-is-a-key-result/
The one mistake almost everyone makes when setting Key Results: www.perdoo.com/resources/setting-key-results/
I hope this helps and wishing you and your team all the best!
Best,
The Perdoo Team
very interesting, but if you put in your video like table and ecxemple make more perfect
Thanks for your suggestion Abdul. We'll take that into account when we'll start working on a new version of this video.
thank you for writing the transcript! the auto-generated ones are horrible but reading along really helps me out :)
Helpful!, Can be with examples please?
Hi there,
A metric is a tool used to measure something. So in business terms you might want to measure your employee satisfaction, so you might focus on the metric: Employee Net Promoter Score (eNPS).
A KPI includes a metric, but also a target value, and a current value, to help you measure the metric. So for example your KPI could be to ensure your eNPS is 50 or higher. (eNPS ≥ 50)
For Key Results, for example, you may create an OKR to improve your employee satisfaction. Your Objective could be “Our employees have never been happier”. A Key Result could be: “Increase eNPs from 30 to 50”. Your Key Result includes a metric, a target value, a start value and a current value.
They’re similar so I understand the confusion, however, they’re used for different purposes. Perhaps this video can provide further clarity: ruclips.net/video/JelX96pTTo4/видео.html.
Hope this helps!
Still not easy to differentiate.. anyhow thanks
❤❤❤❤
Who is the speaker in the video?
Hi there, the speaker is Henrik-Jan van der Pol, CEO of Perdoo (www.perdoo.com). Perdoo is an OKR platform used by ambitious organizations to execute strategy and drive 10x growth. We offer all the tools and expert coaching you need to turn strategy into results.
any example for each ?
Hi there,
A metric is a tool used to measure something. So in business terms you might want to measure your employee satisfaction, so you might focus on the metric: Employee Net Promoter Score (eNPS).
A KPI includes a metric, but also a target value, and a current value, to help you measure the metric. So for example your KPI could be to ensure your eNPS is 50 or higher. (eNPS ≥ 50)
For Key Results, for example, you may create an OKR to improve your employee satisfaction. Your Objective could be “Our employees have never been happier”. A Key Result could be: “Increase eNPs from 30 to 50”. Your Key Result includes a metric, a target value, a start value and a current value.
They’re similar so I understand the confusion, however, they’re used for different purposes. Perhaps this video can provide further clarity: ruclips.net/video/JelX96pTTo4/видео.html.
Hope this helps!
@@Perdoothanks. Very helpful!
Video that do not have kpi , matrix or key result!
Hi there,
A metric is a tool used to measure something. So in business terms you might want to measure your employee satisfaction, so you might focus on the metric: Employee Net Promoter Score (eNPS).
A KPI includes a metric, but also a target value, and a current value, to help you measure the metric. So for example your KPI could be to ensure your eNPS is 50 or higher. (eNPS ≥ 50)
For Key Results, for example, you may create an OKR to improve your employee satisfaction. Your Objective could be “Our employees have never been happier”. A Key Result could be: “Increase eNPs from 30 to 50”. Your Key Result includes a metric, a target value, a start value and a current value.
They’re similar so I understand the confusion, however, they’re used for different purposes. Perhaps this video can provide further clarity: ruclips.net/video/JelX96pTTo4/видео.html.
Hope this helps!
good once, but with example would have been helpful
Hi there,
A metric is a tool used to measure something. So in business terms you might want to measure your employee satisfaction, so you might focus on the metric: Employee Net Promoter Score (eNPS).
A KPI includes a metric, but also a target value, and a current value, to help you measure the metric. So for example your KPI could be to ensure your eNPS is 50 or higher. (eNPS ≥ 50)
For Key Results, for example, you may create an OKR to improve your employee satisfaction. Your Objective could be “Our employees have never been happier”. A Key Result could be: “Increase eNPs from 30 to 50”. Your Key Result includes a metric, a target value, a start value and a current value.
They’re similar so I understand the confusion, however, they’re used for different purposes. Perhaps this video can provide further clarity: ruclips.net/video/JelX96pTTo4/видео.html.
Hope this helps!
All KPIS are metrics but not all metrics are KPIS
I found the videos to be very dry and theoretical. It ended up confusing more. May be using a real business example would have helped.