One of the biggest mistakes leaders make is confusing clarity with rigidity. We want clear objectives, but we also need to be adaptable. We want accountability, but we don’t want to kill ambition. We need to measure performance, but we can’t let numbers dictate our entire strategy.
So how do we balance it all? By using OKRs and KPIs the right way; not as rules carved in stone, but as tools that guide, inspire, and empower.
The Real Purpose of Goals
A leader’s word is their bond. Consistency is key. Leaders must follow through on what they say they will do, whether it’s a small promise or a major commitment. Being reliable in actions builds trust and credibility. When words match actions, people know they can count on their leader, which is crucial for creating a stable and positive work culture.
Standing Up for What’s Right
If you ask most managers why they set goals, they’ll say something like:
- To track progress
- To measure success
- To hold people accountable
Sounds logical, right? But here’s the problem: Goals aren’t just checkpoints. They should be catalysts for action.
If your objectives only exist to measure people, you’ve already lost. Your team isn’t a set of data points. They’re the ones driving your company forward. And if they’re too afraid of missing a target, they’ll stop aiming for bigger things.
That’s where the OKR mindset comes in.
Set Ambitious Goals, but Stay Flexible
OKRs (Objectives and Key Results) aren’t just about tracking—they’re about growth. They help teams stretch beyond what feels comfortable.
But here’s the key: They’re not about hitting 100 percent. A well-set OKR is designed so that 70 to 80 percent progress is a win. It’s about direction, not perfection.
Leaders who get this right create cultures of possibility, where people aren’t afraid to try new things, experiment, and actually innovate instead of just playing it safe
Clarity in Performance, Not Control
Now, what about KPIs (Key Performance Indicators)? We still need them, but we need to stop using them as weapons and start using them as indicators, as the name suggests.
KPIs tell us whether the engine is running smoothly. Are we efficient? Are we meeting customer expectations? Are we financially stable?
But here’s where many organizations go wrong:
- They confuse efficiency with growth
- They punish teams for not hitting aggressive KPI targets
- They treat every KPI as a non-negotiable benchmark
The result? Employees who prioritize looking good over taking risks. Instead of working toward something meaningful, they’re just trying to avoid failure.
That’s why KPIs should support OKRs, not replace them.
The Balance: Inspire and Measure
Great leaders know that business isn’t just about numbers. It’s about people.
- OKRs create the vision. They say: Here’s where we’re going.
- KPIs create accountability. They say: Here’s how we’re doing along the way.
One without the other leads to dysfunction. OKRs without KPIs? Lots of ideas, no stability. KPIs without OKRs? Stability, but no progress.
The magic happens when they work together.
Final Thought: Don’t Set Traps, Set Pathways
When you set goals for your team, ask yourself:
- Are these objectives designed to challenge and inspire?
- Are our KPIs helping us learn and adjust, or are they just punishing us?
- Are we giving people enough room to grow, or are we forcing them into rigid definitions of success?
At the end of the day, leadership isn’t about controlling outcomes. It’s about creating an environment where the right outcomes happen naturally.
So set goals, track performance, but never forget: your team isn’t here to hit numbers. They’re here to build something bigger.
