Difference between KGI and OKR
Posted: Sun Jan 19, 2025 6:29 am
" OKR (Objective and Key Result) " stands for " the goal to be achieved and the key results to achieve that goal ."
While KGI and KPI are indicators that measure "progress togo email address toward the final goal," OKR refers to "a goal management method that shares and visualizes the process for achieving a goal within a team or company ."
In addition, KGI/KPI and OKR differ in terms of scale and flexibility.
KGIs and KPIs are medium- to long-term goals set by the entire company, and once set, they are rarely significantly changed.
However, when market conditions and business environments change, it can become difficult to move in a straight line toward KGI and KPIs.
On the other hand, OKRs are characterized by their high flexibility in being set on a quarterly or semi-annual basis.
It's a great way to periodically review the direction your company should be heading in and share it with the entire company.
Furthermore, by setting "individual OKRs," "team OKRs," and "company OKRs" and working to achieve them in conjunction with each other, it will lead to improved performance for both individuals and the company .
Difference between KGI and KSF
" KSF (Key Success Factor) " is a term that stands for " critical success factor " and refers to the actions necessary to achieve the final goal . The idea is to identify and realize KSF, achieve KPI, and ultimately achieve KGI.
KSFs are clarified by analyzing external factors (changes in the market and global situation, the entry of competitors, etc.) and internal factors (your company's strengths, business goals, etc.).
As the market and your company's situation change, your KSFs will also change, so it is important to regularly update them and incorporate them into your operations.
Benefits of setting KGI
There are four benefits to companies setting KGIs in their business strategies:
Stakeholders can understand the direction the company is heading
You can understand business goals and the achievement level of each business.
Efficiently improve your business
Easier to keep employees motivated
Let's take a closer look at each one.
Benefit 1: Stakeholders can understand the direction the company is heading.
Setting KGIs makes it easier for stakeholders to understand the direction the company is heading.
A stakeholder is any party that brings profits or losses to a company , including shareholders, managers, employees, customers, business partners, financial institutions, and government agencies.
While KGI and KPI are indicators that measure "progress togo email address toward the final goal," OKR refers to "a goal management method that shares and visualizes the process for achieving a goal within a team or company ."
In addition, KGI/KPI and OKR differ in terms of scale and flexibility.
KGIs and KPIs are medium- to long-term goals set by the entire company, and once set, they are rarely significantly changed.
However, when market conditions and business environments change, it can become difficult to move in a straight line toward KGI and KPIs.
On the other hand, OKRs are characterized by their high flexibility in being set on a quarterly or semi-annual basis.
It's a great way to periodically review the direction your company should be heading in and share it with the entire company.
Furthermore, by setting "individual OKRs," "team OKRs," and "company OKRs" and working to achieve them in conjunction with each other, it will lead to improved performance for both individuals and the company .
Difference between KGI and KSF
" KSF (Key Success Factor) " is a term that stands for " critical success factor " and refers to the actions necessary to achieve the final goal . The idea is to identify and realize KSF, achieve KPI, and ultimately achieve KGI.
KSFs are clarified by analyzing external factors (changes in the market and global situation, the entry of competitors, etc.) and internal factors (your company's strengths, business goals, etc.).
As the market and your company's situation change, your KSFs will also change, so it is important to regularly update them and incorporate them into your operations.
Benefits of setting KGI
There are four benefits to companies setting KGIs in their business strategies:
Stakeholders can understand the direction the company is heading
You can understand business goals and the achievement level of each business.
Efficiently improve your business
Easier to keep employees motivated
Let's take a closer look at each one.
Benefit 1: Stakeholders can understand the direction the company is heading.
Setting KGIs makes it easier for stakeholders to understand the direction the company is heading.
A stakeholder is any party that brings profits or losses to a company , including shareholders, managers, employees, customers, business partners, financial institutions, and government agencies.