Key Performance Indicators (KPIs) vs Key Results Indicators (KRIs)

Introduction

Many organisations confuse key performance indicators (KPIs) with key results indicators (KRIs). The mix‑up leads to dashboards that tell you “what” is happening but not “how” to improve it. This guide clarifies the difference, shows when each metric belongs on a board‑level versus a management‑level dashboard, and provides practical tools you can start using today.

What Is a KPI?

A KPI measures a specific, actionable outcome that drives day‑to‑day operations. KPIs are:

• Forward‑looking and tied to short‑term targets (daily, weekly, monthly).
• Operable by front‑line managers and teams.
• Usually expressed as a ratio, percentage, or count (e.g., conversion rate, average handle time, sales per rep).

Because they are actionable, KPIs form the backbone of an operational dashboard.

What Is a KRI?

KRIs (sometimes called key risk indicators) are high‑level metrics that tell senior leadership whether the business is on the right strategic trajectory. KRIs are:

• Lagging or leading indicators evaluated on a quarterly or annual basis.
• Broad‑spectrum measures such as net margin, customer‑satisfaction index, or ROI.
• Designed for board‑level reporting rather than day‑to‑day management.

Think of KRIs as the speedometer on a car – they show the speed, but they don’t tell the driver which gear to shift.

KPIs vs KRIs – A Quick Comparison

Aspect	KPI (Operational)	KRI (Strategic)
Time horizon	Daily‑to‑monthly	Quarterly‑annual
Audience	Team leads, managers	Board & senior execs
Purpose	Guide immediate actions	Signal strategic health
Typical format	Percentage, count, ratio	Financial %, risk score, trend

When to Use a KPI vs a KRI

Use a KPI when you need to:

• Drive performance improvement in a specific process.
• Motivate a team with clear, short‑term targets.
• Monitor day‑to‑day efficiency (e.g., order‑to‑cash cycle time).

Use a KRI when you need to:

• Assess overall business health for investors or board members.
• Track long‑term risk exposure (e.g., credit risk, market volatility).
• Provide context for multiple KPIs on a balanced‑scorecard.

Designing the Right Dashboard

Best practice is to keep two distinct dashboards:

• Board Dashboard – 8‑12 high‑level KRIs that give a snapshot of strategic performance.
• Management Dashboard – 20‑30 KPIs broken down by department, function, or team.

Both dashboards should share a common data source to ensure consistency.

Tools to Build Your Dashboards

Our ready‑made Excel templates can jump‑start your reporting:

• Financial Dashboard Excel
• Balanced Scorecard & Strategy Map Toolkit
• Automated Excel Reporting

Industry‑Specific Examples

1. SaaS Companies

• KPI: Monthly Recurring Revenue (MRR) growth rate – tracked weekly.
• KRI: Customer Lifetime Value (CLV) to Customer Acquisition Cost (CAC) ratio – reviewed quarterly.

2. Manufacturing

• KPI: Overall Equipment Effectiveness (OEE) – daily shift reports.
• KRI: Safety Incident Frequency Rate – annual safety audit.

3. Professional Services

• KPI: Billable utilization % per consultant – measured monthly.
• KRI: Net profit margin on top‑line services – quarterly board review.

Quick Implementation Checklist

Step	Action	Owner
1	Identify 5‑7 strategic goals for the next 12 months.	Executive Team
2	Map each goal to 1‑2 KRIs (e.g., profit margin, NPS).	Finance & Strategy
3	Define operational processes that support each goal.	Department Heads
4	Choose 3‑5 KPIs per process (e.g., cycle time, defect rate).	Operations Managers
5	Build two dashboards – board (KRIs) and management (KPIs).	Data Analyst
6	Set review cadence – weekly KPI huddles, quarterly KRI board meetings.	Leadership

Next Steps

Ready to turn this framework into a live reporting system? Grab our Balanced Scorecard and Strategy Map Toolkit to design, populate, and automate both KPI and KRI dashboards in minutes.

Suggested Tags & Category

Tags: KPIs, KRIs, Performance Metrics
Category: Resources