Strategic planning loves its acronyms. And few get tossed around more casually—or confused more often—than KPIs and OKRs. They sound alike, show up in the same conversations, and occasionally spark more debate than they probably deserve.
But here’s the truth: it’s not really about the label.
Whether you’ve encountered these terms in your last board retreat or heard them dropped in a staff update, this is your plain-English guide. We’re not here to pick a side—we’re here to cut through the noise and help nonprofit boards and leaders use these tools to drive clarity, alignment, and actual progress.
Why This Matters
Your strategic plan should spell out what you’re trying to achieve and how you’ll measure progress. Simple, right? But overthinking the difference between KPIs and OKRs can lead to:
- Mixed signals between staff and board
- Bloated dashboards no one uses
- Or worse, the dreaded strategic theater—all optics, no traction
Understanding how these tools actually work (not just what they’re called) keeps your board aligned, your staff focused, and your metrics meaningful.
OK, So What Is a KPI?
KPI = Key Performance Indicator
KPIs are your steady-state metrics—the gauges on your dashboard that show how the organization is doing over time.
They help answer: “How are we doing?”
- Track performance in key areas
- Useful for spotting trends—good, bad, or meh
Examples:
- % of members attending at least one event annually
- Donor retention rate
- Email open rates
- Number of member advocacy actions
Use KPIs when:
- You want long-term trend data
- You’re monitoring stability or growth
And What About OKRs?
OKR = Objectives and Key Results
OKRs are designed for momentum and focus. The Objective sets a qualitative direction—your “what we’re trying to achieve.” The Key Results are the measurable milestones that show progress.
They help answer: “What are we focusing on right now, and how will we know we’re making progress?”
- Objectives are qualitative, short-term, time-bound
- Key Results are specific, quantitative, and tied to the Objective
- OKRs are often set quarterly or semi-annually
Example:
Objective: Increase grassroots advocacy this legislative session
Key Results:
- Boost member actions by 10%
- Recruit 25 new Capitol Hill Day participants
- Publish 3 advocacy updates via member channels
Use OKRs when:
- You want to rally the team around a priority
- You’re pushing toward a specific outcome
- You’re working in short cycles and want fast feedback
Here’s the kicker:
The same metric can be either a KPI or a Key Result—it’s not about what you call it, it’s about how you use it.
Let’s say you’re tracking “% of members who attend an event.”
If it’s part of your annual dashboard to monitor engagement over time, it’s a KPI.
But if it’s tied to a quarterly push to increase event participation? That same metric becomes a Key Result.
Why it matters:
Understanding this distinction helps boards and staff avoid unnecessary debates about labeling and focus instead on how the data supports decision-making. Are you using the metric to monitor or to motivate? That’s the real question.
What Should Boards Use in Strategic Planning?
If your organization has a multi-year strategic plan, KPIs are your best friend. They’re great for:
- Tracking progress toward big-picture goals
- Reporting consistently to the board
- Supporting fiduciary oversight (hello, duty of care!)
What about OKRs? Can you layer them into your strategic plan?
You can—but that doesn’t mean you should.
OKRs are built for agility and focus. If your team has the capacity and accountability structures in place, they can be a helpful way to break down your big goals into quarterly or annual action sprints. They help answer, “What are we focusing on right now to move this plan forward?”
But here’s the honest truth: if you’re not revisiting them regularly, if there’s no ownership, or if your organization isn’t wired for fast feedback loops, OKRs can turn into just another shiny distraction. More tracking. More dashboards. Less clarity.
So before you jump in, ask:
- Do we have the capacity to revisit priorities frequently?
- Do our teams have clear ownership and accountability?
- Will this framework support clarity—or clutter it?
Because at the end of the day, what really moves strategy forward isn’t the acronym—it’s the follow-through.
The Governance Gal Takeaway
Don’t let a technical debate about acronyms derail your strategy. Whether you’re tracking a KPI or a Key Result—they’re all just fancy progress numbers in the end. What really matters isn’t what you call it—it’s whether your board understands it, cares about it, and actually uses it to steer the ship.
Because at the end of the day, strategy isn’t driven by acronyms. It’s driven by focus, alignment, and follow-through.
Need help translating your strategic plan into performance measures that actually matter? Governance Gal has your back—no buzzwords required.
