Using OKRs & KPIs in the Project Management

Introduction

One of the most critical steps to running a successful project is regularly monitoring and evaluating progress. This is where two important performance management tools come into play: OKRs (Objectives and Key Results) and KPIs (Key Performance Indicator Indicato Objectives and Key Results (OKRs) and Key Performance Indicators). So, what are these approaches, and how do they help you measure project success? Let’s explore them together.  

The purpose of using KPIs is to monitor performance against defined goals that provide early warning signals when performance deviates from the plan and support decision-making based on the KPI values for the improvement areas.  

OKRs define the core purpose of an organisation, or project (objective) and the measurable results required to achieve that purpose (Key Results). Unlike KPIs, OKRs are often more aspirational and strategic.  

The purpose of using OKR is different from KPIs, which provide alignment of teams around shared priorities. OKRs and KPIs are two different but complementary management tools. OKRs help companies and teams achieve their strategic goals, while KPIs focus on measuring performance and outcomes.  

When used together in Project Management, OKRs and KPIs provide concrete and measurable data. They identify areas for performance improvement and support management decisions.  

Integrating KPIs & OKRs in Project Management

Let’s look at how you can set up a framework for integrating KPIs & OKRs in Project Management.  

• Begin with a clear understanding of the project’s vision and objectives   
• Define OKRS and KPIs in the project management plan:   
  • Set up a qualitative, ambitious statement of what the project wants to achieve, and set 3 to 5 measurable key results (metrics) that will track progress. The time frame can be quarterly or annual, aligned with project phases or milestones.  
  • Select 5–7 core KPIs to measure cost, time, scope, risk, and quality, such as Schedule Variance, Budget Variance, Defect Density, and Resource Utilisation. The time frame can be weekly or monthly.  
• Define the linkage between OKR & KPI through governance and reporting   
  • Ask questions to the team, ‘where we want to be’ for OKR and ‘How well the project is running’ for the Dashboard meters.  
  • Combine OKRs & KPIs in a single view (Power BI, Tableau, JIRA dashboards).  
  • Define the timeframe for Key Results and KPIs. Reporting periods will be Weekly/Monthly operational reviews for KPIs, and Quarterly/Phase-end strategic reviews for OKRs.  
  • The target audience for the reports can be the Project team and the Steering Committee. The Project Team will be KPI-focused, and the Steering Committee will be OKR-focused, supported by KPI evidence.  
• Create an action Plan to show how the OKRs align with individual responsibilities  
• Take Corrective Actions: Get feedback on KPIs and improve OKRs.  

Let’s try to explain the use of OKRs and KPIs through an example project. The organisation realised that its existing IT infrastructure was slowing down growth and putting operations at risk. System downtime was too frequent; employees were frustrated with IT services, and workloads were scattered across ageing servers. To prepare for the future, leadership launched an IT Infrastructure Upgrade Program with a clear Objective: Strengthen IT infrastructure resilience to support future growth.  

The program team translated this vision into three Key Results:  

1. Reduce system downtime from 5 hours per month to less than 1 hour per month.  
2. Migrate 80% of workloads to the cloud by the end of Q3.  
3. Increase employee satisfaction with IT services by 20%.  

These OKRs gave the team an ambitious but inspiring direction. However, the team also needed practical measures to ensure day-to-day delivery stayed on track. That’s where KPIs came in:  

• They tracked the % of servers migrated each month to monitor steady progress.  
• They measured SLA compliance rates to ensure service commitments were consistently met.  
• They monitored IT support ticket resolution times to identify whether employee satisfaction was improving in real time.  

By linking strategic OKRs with operational KPIs, the project team kept its focus on both the destination (a resilient, cloud-enabled IT environment) and the journey (executing efficiently, with quality and consistency).  

At the end of Q3, the results spoke for themselves: downtime had dropped dramatically, most workloads had been successfully migrated to the cloud, and employees were noticeably more satisfied with IT support. The combination of OKRs and KPIs not only guided delivery but also built confidence across stakeholders that the upgrade was positioning the organisation for sustainable growth.  

Conclusion

In summary, we can use OKRs for project “goal and impact” (the change you want) and KPIs for project “journey health” (are we delivering well). Together, they provide both strategic alignment and execution assurance.  

References:

1. Project Manager. 2025. What Is the Meaning of OKR? Definitions & Examples by William Malsam