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Glossary
OKRs & KPIs

What is KPI?

A KPI is a specific, quantifiable metric used to evaluate the success of an organization or a particular activity in which it engages. Unlike general metrics, KPIs focus on the most critical indicators of performance that directly impact business health and growth strategy.

When to use it

Teams should use KPIs to monitor the health of ongoing business processes and ensure they are meeting baseline performance targets. They are ideal for identifying trends over time, such as customer retention rates or system uptime, providing a steady pulse on whether the organization is staying on track.

Example

A SaaS team focused on growth might track Monthly Recurring Revenue (MRR) and Churn Rate as their primary KPIs. For instance, if the company aims to reach $100k MRR by year-end, they would monitor net new revenue added each month against their current baseline of $75k. If the churn rate spikes above 3%, the team uses this KPI as a signal to investigate product stability or customer success gaps before the revenue goal is compromised.

How Planet Roadmap helps with KPI

Planet Roadmap features a built-in OKR tracking module that allows teams to define specific KPIs and monitor their progress over time. You can link these metrics directly to roadmap initiatives to see exactly how your projects are moving the needle on core business goals.

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FAQ

How is a KPI different from an OKR?
KPIs are typically steady-state metrics that measure the health of an existing business process (like 'uptime' or 'customer satisfaction'), whereas OKRs are a goal-setting framework used to drive specific, time-bound changes or improvements (like 'launch a new mobile app by Q3').
What makes a metric a 'Key' Performance Indicator instead of just a metric?
A metric becomes a KPI when it is directly tied to a strategic business outcome. While a company might track hundreds of data points, only the 3-5 metrics that most accurately reflect progress toward its primary strategic goals should be designated as KPIs to maintain focus.

Related terms

OKRNorth Star MetricLagging IndicatorLeading IndicatorObjectiveKey ResultMonthly Active Users (MAU)Customer Lifetime Value (LTV)Customer Acquisition Cost (CAC)Churn

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