OKRs, KPIs, and KRAs - Don't get confused

Trust me, I used to get confused around these terms. We are doing the essence of these in our daily lives in one way or another. 

OKRs (Objectives and Key Results)

• A goal-setting framework defining objectives and measurable results.
• Purpose: Align teams and individuals with strategic objectives.
• Scope: Strategic, ambitious, and time-bound.
• Measurement: Success is measured using specific Key Results.
• Focus: Stretch goals to drive growth and innovation.
• Timeframe: Short-term (usually quarterly) and revised frequently.
• Example:
  • Objective: Improve customer satisfaction.
  • Key Result 1: Increase NPS from 70 to 85.
  • Key Result 2: Reduce response time to <5 hours.

KPIs (Key Performance Indicators)

• Metrics that track ongoing performance against goals.
• Purpose: Measure performance and effectiveness of processes.
• Scope: Tactical, focused on tracking progress.
• Measurement: Based on predefined numerical targets (e.g., % increase, time reduction).
• Focus: Continuous monitoring of business health and efficiency.
• Timeframe: Ongoing, tracked weekly, monthly, or annually.
• Example:
  • KPI: Customer satisfaction score.
  • KPI: Average resolution time.
  • KPI: Retention rate.

KRAs (Key Result Areas)

• Broad areas of responsibility that contribute to business success.
• Purpose: Define focus areas where performance is critical.
• Scope: Broad responsibility areas within a role or department.
• Measurement: Typically qualitative, guiding what needs to be achieved.
• Focus: Areas where individuals or teams must deliver results.
• Timeframe: Long-term, role-based, and stable over time.
• Example:
  • KRA: Customer Service.
  • KRA: Sales Growth.
  • KRA: Operational Efficiency.