When to use each framework

Different measurement frameworks serve different purposes in your product strategy. Knowing when to use each one helps you get maximum value from your metrics. KPIs work best for ongoing performance monitoring. Think of them as health metrics that track how your systems and teams are doing day to day. Use KPIs to measure progress toward your key results and to keep an eye on established processes. For example, a customer support team might have a key result like “Resolve 90% of tickets within 24 hours.” To track progress toward that, they’d use KPIs such as average response time and ticket resolution rate.

OKRs shine when you're pushing for significant improvement or change. They're perfect for quarterly focus areas where multiple teams need to coordinate their efforts. A company might set OKRs when launching a new product feature, entering a new market, or solving a critical business problem that cuts across departments.

Your North Star Metric provides long-term direction that rarely changes. It helps teams prioritize work and make decisions when faced with competing options. While KPIs and OKRs might change quarterly or annually, a good North Star Metric remains stable for years, changing only when your business model fundamentally shifts.