Table 2

Distinction between OKRs and other performance management tools

CriteriaOKRsMBOBSCKPIs
Fundamental QuestionWhat is to be achieved? How to get there?What is to be achieved?How can strategy be translated into measurable outcomes?How can the performance be measured?
Creation CycleQuarterlyAnnualAnnualDiverse
VisibilityPublic and transparentPrivate and isolatedUsually privateUsually private, but the level of transparency can vary
InvolvementBottom-up and Top-downTop-downTop-downTop-down
Relation to CompensationDetached from compensationOften tied to compensationOften tied to compensationOften tied to compensation
CharacteristicAggressive and aspirationalRisk averseRisk averseRisk averse
Source(s): Author’s own work

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