KPIs vs OKRs: What They Are and Which Ones a Startup Needs
A key performance indicator (KPI) is a number you track continuously to see whether the business is healthy, such as weekly active users or monthly revenue. Objectives and key results (OKRs) are a goal-setting method: an ambitious objective for a period plus a few measurable results that show you achieved it.
By Javier Alonso, Founder & CEO. Updated .
KPIs: key performance indicators
KPIs are the few numbers that show whether the business is working. Good KPIs are measured the same way every time, reviewed on a fixed rhythm (often weekly) and tied to decisions. If a number moving would not change what you do, it is a metric, not a KPI.
OKRs: objectives and key results
OKRs were developed at Intel and popularised by John Doerr. An OKR has one qualitative objective, such as "Prove clinics will pay for reminders", and two to four measurable key results, such as "10 clinics on paid plans" and "no-show rate down 25% for pilot clinics". OKRs usually run for a quarter and are meant to be ambitious. Reaching around 70% of a key result is often treated as a good outcome.
How they work together
KPIs tell you where you stand. OKRs tell you what you are trying to change this quarter. A team might track five KPIs every week and set one OKR to move the one that matters most right now. Early startups rarely need a full OKR system. One objective per quarter with two or three key results is plenty.
Startup KPIs by stage
- Before launch: customer interviews completed, waitlist conversion of qualified visitors, number of committed early users.
- After launch, before product-market fit: activation rate, weekly active users, retention by cohort, qualitative feedback. See product-market fit.
- Early revenue: MRR, churn, CAC by channel, conversion from trial to paid.
- Scaling: LTV:CAC, payback, net revenue retention, gross margin.
Many teams also choose a single north star metric that best captures the value customers get, such as "weekly appointments confirmed" for a scheduling tool.
Example
A three-person startup with a new scheduling product tracks four weekly KPIs: new clinics activated, weekly active clinics, appointments confirmed and churned clinics. Its quarterly OKR is "Prove clinics will pay", with key results of 10 paying clinics, 80% three-month retention among them and two clinics referring another.
For your role
- Mentors
- Ask founders for their three KPIs and last week's values. If they cannot answer quickly, help them choose before discussing anything else.
- Investors
- Stage-appropriate KPIs show more judgment than a long dashboard. Ask why each one was chosen.
- Accelerators & incubators
- Agree a small set of stage-appropriate KPIs with each team at the start of the program. It makes progress reporting consistent without forcing every team into the same metrics.
Primary sources
- OKR meaning, definition and examples — What Matters
- 16 Startup Metrics — Andreessen Horowitz
Common questions
- What is the difference between a KPI and an OKR?
- A KPI is an ongoing measure of health. An OKR is a time-bound goal: an objective plus measurable key results you aim to achieve, often within a quarter.
- How many KPIs should a startup track?
- Usually three to five that match your stage. More than that dilutes attention.
- Do early startups need OKRs?
- Not a full system. One clear objective per quarter with two or three key results is usually enough for a small team.
Put it into practice
Traction Engine combines consistency, channel efficiency, experiment quality and retention into a weekly Traction Score.