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<title data-rh="true">SLI vs KPI - Alex Ewerlöf Notes</title>
<meta data-rh="true" name="theme-color" content="#001426"/><meta data-rh="true" property="og:type" content="article"/><meta data-rh="true" property="og:title" content="SLI vs KPI"/><meta data-rh="true" name="twitter:title" content="SLI vs KPI"/><meta data-rh="true" name="description" content="Is Service Level Indicator (SLI) the same as Key Performance Indicator (KPI)? This article answers that question with lots of examples, elaborating the question from multiple dimensions: concern, time horizon, audience, actionability, etc."/><meta data-rh="true" property="og:description" content="Is Service Level Indicator (SLI) the same as Key Performance Indicator (KPI)?"/><meta data-rh="true" name="twitter:description" content="Is Service Level Indicator (SLI) the same as Key Performance Indicator (KPI)?"/><meta data-rh="true" property="og:image" content="https://substackcdn.com/image/fetch/$s_!JTt1!,w_1200,h_675,c_fill,f_jpg,q_auto:good,fl_progressive:steep,g_auto/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png"/><meta data-rh="true" name="twitter:image" content="https://substackcdn.com/image/fetch/$s_!WonY!,f_auto,q_auto:best,fl_progressive:steep/https%3A%2F%2Falexewerlof.substack.com%2Fapi%2Fv1%2Fpost_preview%2F151250438%2Ftwitter.jpg%3Fversion%3D4"/><meta data-rh="true" name="twitter:card" content="summary_large_image"/><meta data-rh="true" property="article:modified_time" content="2024-11-21T23:07:27.517Z"/>
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Engineering</a></div><h1 dir="auto" class="post-title published title-X77sOw">SLI vs KPI</h1><h3 dir="auto" class="subtitle subtitle-HEEcLo">Is Service Level Indicator (SLI) the same as Key Performance Indicator (KPI)?</h3><div aria-label="Post UFI" role="region" class="pencraft pc-display-flex pc-flexDirection-column pc-paddingBottom-16 pc-reset"><div class="pencraft pc-display-flex pc-paddingTop-16 pc-paddingBottom-16 pc-justifyContent-space-between pc-alignItems-center pc-reset"><div class="pencraft pc-display-flex pc-gap-12 pc-alignItems-center pc-reset byline-wrapper"><div class="pencraft pc-display-flex pc-reset"><div class="pencraft pc-display-flex pc-flexDirection-row pc-gap-8 pc-alignItems-center pc-justifyContent-flex-start pc-reset"><div style="--scale:36px;--offset:9px;--border-width:4.5px;" class="pencraft pc-display-flex pc-flexDirection-row pc-alignItems-center pc-justifyContent-flex-start pc-reset ltr-qDBmby"><a href="https://substack.com/@alexewerlof" aria-label="View 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class="label">Share</div></button></div></div></div></div><div class="visibility-check"></div><div><div class="dt-post-body"><div class="available-content"><div dir="auto" class="body markup"><p>I get this question a lot: is Service Level Indicator (SLI) the same as Key Performance Indicator (KPI)?</p><p>It depends! 🤓</p><p>Just joking. 😄There are many similarities but also some important nuances that this article digs into.</p><p><em>Does it really matter to distinguish between the two? Well, that one actually depends!!! If the point of the language is to communicate ideas, it pays dividends to use the right word.</em></p><p><span>Both SLI and KPI got popularized by Google although they don’t originate there. SLI and KPI are metrics where the “I” stands for indicator. Both metrics aim towards optimizing an </span><em>objective</em><span> and support data-driven decisions.</span></p><p><strong>But that’s where the similarities end.</strong><span> There are fundamental differences between the two that stem from their purpose and expand to their scope, concern, audience, actions, and even formula.</span></p><p>What’s interesting is that KPI/OKR and SLI/SLO are two systems that can be converted to each other with many nuances.</p><h1 class="header-anchor-post">Usage<div class="pencraft pc-display-flex pc-alignItems-center pc-position-absolute pc-reset header-anchor-parent"><div class="pencraft pc-display-contents pc-reset pubTheme-yiXxQA"><div id="§usage" class="pencraft pc-reset header-anchor offset-top"></div><button tabindex="0" type="button" aria-label="Link" data-href="https://blog.alexewerlof.com/i/151250438/usage" class="pencraft pc-reset pencraft iconButton-mq_Et5 iconButtonBase-dJGHgN buttonBase-GK1x3M buttonStyle-r7yGCK size_sm-G3LciD priority_secondary-S63h9o"><svg xmlns="http://www.w3.org/2000/svg" width="18" height="18" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-link"><path d="M10 13a5 5 0 0 0 7.54.54l3-3a5 5 0 0 0-7.07-7.07l-1.72 1.71"></path><path d="M14 11a5 5 0 0 0-7.54-.54l-3 3a5 5 0 0 0 7.07 7.07l1.71-1.71"></path></svg></button></div></div></h1><div class="captioned-image-container"><figure><a target="_blank" href="https://substackcdn.com/image/fetch/$s_!P3BA!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png" data-component-name="Image2ToDOM" class="image-link image2 is-viewable-img can-restack"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!P3BA!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 424w, https://substackcdn.com/image/fetch/$s_!P3BA!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 848w, https://substackcdn.com/image/fetch/$s_!P3BA!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 1272w, https://substackcdn.com/image/fetch/$s_!P3BA!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 1456w" sizes="100vw"/><img src="https://substackcdn.com/image/fetch/$s_!P3BA!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png" width="711" height="557" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:557,&quot;width&quot;:711,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:113682,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt srcset="https://substackcdn.com/image/fetch/$s_!P3BA!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 424w, https://substackcdn.com/image/fetch/$s_!P3BA!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 848w, https://substackcdn.com/image/fetch/$s_!P3BA!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 1272w, https://substackcdn.com/image/fetch/$s_!P3BA!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 1456w" sizes="100vw" fetchpriority="high" class="sizing-normal"/></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg aria-hidden="true" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a><figcaption class="image-caption">Typical KPIs and SLIs</figcaption></figure></div><p>Key Performance Indicators enjoy a large usage across business, sales, marketing, product, finance, and beyond.</p><p>KPIs cover various areas, including financial metrics (e.g. revenue per customer), product metrics (e.g. monthly active users), customer satisfaction, employee productivity, operational efficiency (e.g. number of goods produced without defects), culture (e.g. OfficeVibe scores), etc.</p><p>The target of KPIs can be to optimize systems, organizations, products, business, etc.</p><p><a href="https://blog.alexewerlof.com/p/sli">Service Level Indicator</a><span> on the other hand is primarily concerned with reliability engineering and has seen an </span><a href="https://trends.google.com/trends/explore?date=today%205-y&amp;q=kpi,sli&amp;hl=en-GB">uptake</a><span> due to the popularity of SRE (site reliability engineering) in recent years.</span></p><p><span>SLI covers various </span><a href="https://blog.alexewerlof.com/p/service">services</a><span> metrics like latency, error rate, throughput, data consistency, cache hit ratio, etc.</span></p><p>In my experience KPIs are more high level and wishy washy leading to memes like this:</p><div class="captioned-image-container"><figure><a target="_blank" href="https://substackcdn.com/image/fetch/$s_!cZoN!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg" data-component-name="Image2ToDOM" class="image-link image2 is-viewable-img can-restack"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!cZoN!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 424w, https://substackcdn.com/image/fetch/$s_!cZoN!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 848w, https://substackcdn.com/image/fetch/$s_!cZoN!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!cZoN!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 1456w" sizes="100vw"/><img src="https://substackcdn.com/image/fetch/$s_!cZoN!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg" width="566" height="522.135" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:738,&quot;width&quot;:800,&quot;resizeWidth&quot;:566,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;Jacqueline Lemus on LinkedIn: KPI = keep people interested! 👩‍💻&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="Jacqueline Lemus on LinkedIn: KPI = keep people interested! 👩‍💻" title="Jacqueline Lemus on LinkedIn: KPI = keep people interested! 👩‍💻" srcset="https://substackcdn.com/image/fetch/$s_!cZoN!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 424w, https://substackcdn.com/image/fetch/$s_!cZoN!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 848w, https://substackcdn.com/image/fetch/$s_!cZoN!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!cZoN!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 1456w" sizes="100vw" loading="lazy" class="sizing-normal"/></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg aria-hidden="true" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>SLI on the other hand typically enjoys a more formal definition and scoped usage (reliability engineering). </p><h1 class="header-anchor-post">Normalization<div class="pencraft pc-display-flex pc-alignItems-center pc-position-absolute pc-reset header-anchor-parent"><div class="pencraft pc-display-contents pc-reset pubTheme-yiXxQA"><div id="§normalization" class="pencraft pc-reset header-anchor offset-top"></div><button tabindex="0" type="button" aria-label="Link" data-href="https://blog.alexewerlof.com/i/151250438/normalization" class="pencraft pc-reset pencraft iconButton-mq_Et5 iconButtonBase-dJGHgN buttonBase-GK1x3M buttonStyle-r7yGCK size_sm-G3LciD priority_secondary-S63h9o"><svg xmlns="http://www.w3.org/2000/svg" width="18" height="18" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-link"><path d="M10 13a5 5 0 0 0 7.54.54l3-3a5 5 0 0 0-7.07-7.07l-1.72 1.71"></path><path d="M14 11a5 5 0 0 0-7.54-.54l-3 3a5 5 0 0 0 7.07 7.07l1.71-1.71"></path></svg></button></div></div></h1><p>KPI does not need to be normalized. The metric datapoints can be any number. For example, the monthly active users (MAU). </p><p>SLI doesn’t need to be normalized either. But it usually is:</p><div data-component-name="Latex" class="pencraft pc-display-flex pc-paddingTop-4px pc-paddingBottom-4px pc-justifyContent-center pc-reset flex-grow-rzmknG latex-rendered"><div class="pencraft pc-display-flex pc-flexDirection-column pc-justifyContent-center pc-reset"><span style="display:block;">\(\text{SLI} = \frac{\text{Good}}{\text{Valid}} \times 100\)</span></div></div><p><span>This normalization makes it much easier to assess the Service Level Status (</span><a href="https://blog.alexewerlof.com/p/sls">SLS</a><span>) against the Service Level Objective (</span><a href="https://blog.alexewerlof.com/p/sls">SLO</a><span>) which are both values between 0 to 100.</span></p><h1 class="header-anchor-post">Objective<div class="pencraft pc-display-flex pc-alignItems-center pc-position-absolute pc-reset header-anchor-parent"><div class="pencraft pc-display-contents pc-reset pubTheme-yiXxQA"><div id="§objective" class="pencraft pc-reset header-anchor offset-top"></div><button tabindex="0" type="button" aria-label="Link" data-href="https://blog.alexewerlof.com/i/151250438/objective" class="pencraft pc-reset pencraft iconButton-mq_Et5 iconButtonBase-dJGHgN buttonBase-GK1x3M buttonStyle-r7yGCK size_sm-G3LciD priority_secondary-S63h9o"><svg xmlns="http://www.w3.org/2000/svg" width="18" height="18" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-link"><path d="M10 13a5 5 0 0 0 7.54.54l3-3a5 5 0 0 0-7.07-7.07l-1.72 1.71"></path><path d="M14 11a5 5 0 0 0-7.54-.54l-3 3a5 5 0 0 0 7.07 7.07l1.71-1.71"></path></svg></button></div></div></h1><div class="captioned-image-container"><figure><a target="_blank" href="https://substackcdn.com/image/fetch/$s_!JTt1!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png" data-component-name="Image2ToDOM" class="image-link image2 is-viewable-img can-restack"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!JTt1!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png 424w, https://substackcdn.com/image/fetch/$s_!JTt1!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png 848w, https://substackcdn.com/image/fetch/$s_!JTt1!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png 1272w, https://substackcdn.com/image/fetch/$s_!JTt1!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png 1456w" sizes="100vw"/><img src="https://substackcdn.com/image/fetch/$s_!JTt1!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png" width="711" height="452" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/c411a150-9c81-4218-8b5a-2d710baf5076_711x452.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:452,&quot;width&quot;:711,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:45739,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt srcset="https://substackcdn.com/image/fetch/$s_!JTt1!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png 424w, https://substackcdn.com/image/fetch/$s_!JTt1!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png 848w, https://substackcdn.com/image/fetch/$s_!JTt1!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png 1272w, https://substackcdn.com/image/fetch/$s_!JTt1!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png 1456w" sizes="100vw" loading="lazy" class="sizing-normal"/></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg aria-hidden="true" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p>KPI is often used in combination with OKR (objectives and key results). For example:</p><ul><li><p>OKR</p><ul><li><p><strong>Objective:</strong><span> Increase Monthly Active Users (MAU)</span></p></li><li><p><strong>Key results</strong><span> within the next quarter</span></p><ul><li><p>Increase new user sign-ups by 20%</p></li><li><p>Improve user retention rate from 60% to 75%</p></li><li><p>Reduce user churn rate by 15%</p></li></ul></li></ul></li><li><p>KPI</p><ul><li><p>User sign-ups</p></li><li><p>User retention rate</p></li><li><p>User churn rate</p></li></ul></li></ul><p><span>One important point to call out is that OKRs are often </span><em>ambitious</em><span>. They </span><strong>shoot for the stars, aim for the moon</strong><span>. Even if you miss an OKR, you may still celebrate an improvement. 🎉</span></p><p><span>This is in stark contrast with how SLOs work. The mantra for SLO is to </span><strong>under promise and overdeliver</strong><span>. 🔨</span></p><div data-component-name="SubscribeWidget" class="subscribe-widget"><div class="pencraft pc-display-flex pc-justifyContent-center pc-reset"><div class="container-IpPqBD"><form action="/api/v1/free?nojs=true" method="post" novalidate class="form form-M5sC90"><input type="hidden" name="first_url" value/><input type="hidden" name="first_referrer" value/><input type="hidden" name="current_url"/><input type="hidden" name="current_referrer"/><input type="hidden" name="first_session_url" value/><input type="hidden" name="first_session_referrer" value/><input type="hidden" name="referral_code"/><input type="hidden" name="source" value="subscribe-widget"/><input type="hidden" name="referring_pub_id"/><input type="hidden" name="additional_referring_pub_ids"/><input type="hidden" name="source_post_id" value="151250438"/><div class="sideBySideWrap-vGXrwP"><div class="emailInputWrapper-QlA86j"><div class="pencraft pc-display-flex pc-minWidth-0 pc-position-relative pc-reset flex-auto-j3S2WA"><input name="email" placeholder="Type your email..." type="email" class="pencraft emailInput-OkIMeB input-y4v6N4 inputText-pV_yWb"/></div></div><button tabindex="0" type="submit" disabled class="pencraft pc-reset pencraft rightButton primary subscribe-btn button-VFSdkv buttonBase-GK1x3M"><span class="button-text ">Subscribe</span></button></div><div id="error-container"></div></form></div></div></div><p>Example: say an SLO commits to 99% of requests in 28 days be responded without errors over a period of 28 days.</p><p><span>If we got 213M requests in that period, at least 210,870,000 requests should be responded to with no error (this number is the </span><a href="https://blog.alexewerlof.com/p/sls">Service Level Status</a><span> in a given period).</span></p><p>Note that any higher number is fine (e.g. 212M) but lower (e.g. 200M) means that the SLO is breached.</p><h1 class="header-anchor-post">Accountability<div class="pencraft pc-display-flex pc-alignItems-center pc-position-absolute pc-reset header-anchor-parent"><div class="pencraft pc-display-contents pc-reset pubTheme-yiXxQA"><div id="§accountability" class="pencraft pc-reset header-anchor offset-top"></div><button tabindex="0" type="button" aria-label="Link" data-href="https://blog.alexewerlof.com/i/151250438/accountability" class="pencraft pc-reset pencraft iconButton-mq_Et5 iconButtonBase-dJGHgN buttonBase-GK1x3M buttonStyle-r7yGCK size_sm-G3LciD priority_secondary-S63h9o"><svg xmlns="http://www.w3.org/2000/svg" width="18" height="18" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-link"><path d="M10 13a5 5 0 0 0 7.54.54l3-3a5 5 0 0 0-7.07-7.07l-1.72 1.71"></path><path d="M14 11a5 5 0 0 0-7.54-.54l-3 3a5 5 0 0 0 7.07 7.07l1.71-1.71"></path></svg></button></div></div></h1><p>Both metrics have a notion of accountability. Although in my experience KPI and OKR are usually hard to implement in a way that drives action and is present on a day-to-day basis at the leaf nodes of the organization tree. They’re primarily used by upper and middle management to align key performance metrics.</p><p>SLI on the other hand, gets its meaning from the SLO that sets the minimum expectation.</p><p><span>A good SLO should be tied to alerting so that the </span><a href="https://blog.alexewerlof.com/p/service-level-terminology">service owner</a><span> gets to action as soon as the service level is degraded.</span></p><div class="captioned-image-container"><figure><a target="_blank" href="https://substackcdn.com/image/fetch/$s_!vRar!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png" data-component-name="Image2ToDOM" class="image-link image2 is-viewable-img can-restack"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!vRar!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 424w, https://substackcdn.com/image/fetch/$s_!vRar!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 848w, https://substackcdn.com/image/fetch/$s_!vRar!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 1272w, https://substackcdn.com/image/fetch/$s_!vRar!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 1456w" sizes="100vw"/><img src="https://substackcdn.com/image/fetch/$s_!vRar!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png" width="1041" height="1033" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1033,&quot;width&quot;:1041,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt srcset="https://substackcdn.com/image/fetch/$s_!vRar!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 424w, https://substackcdn.com/image/fetch/$s_!vRar!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 848w, https://substackcdn.com/image/fetch/$s_!vRar!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 1272w, https://substackcdn.com/image/fetch/$s_!vRar!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 1456w" sizes="100vw" loading="lazy" class="sizing-normal"/></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg aria-hidden="true" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a><figcaption class="image-caption"><span>Source: </span><a href="https://blog.alexewerlof.com/p/service-level-terminology">Service Level Terminology</a></figcaption></figure></div><p><span>Moreover, a good SLI measures only what is </span><a href="https://blog.alexewerlof.com/p/you-build-it-you-own-it">owned</a><span> by the service owner and nothing more. In fact, you should never be responsible for what is out of your control.</span></p><div data-component-name="DigestPostEmbed" class="digestPostEmbed-flwiST"><a href="https://blog.alexewerlof.com/p/responsible-for-control" rel="noopener" target="_blank"><div class="pencraft pc-display-flex pc-gap-16 pc-reset"><div style="width:70px;height:70px;" class="pencraft pc-reset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!18Wx!,w_140,h_140,c_fill,f_webp,q_auto:good,fl_progressive:steep,g_auto/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7855ff73-782f-4250-b6f4-f6bb636d37af_1067x738.png"/><img src="https://substackcdn.com/image/fetch/$s_!18Wx!,w_140,h_140,c_fill,f_auto,q_auto:good,fl_progressive:steep,g_auto/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7855ff73-782f-4250-b6f4-f6bb636d37af_1067x738.png" sizes="100vw" alt="You should never be responsible for what you don't control" width="140" height="140" class="img-OACg1c smSquare-NGbPBa pencraft pc-reset"/></picture></div><div class="pencraft pc-display-flex pc-flexDirection-column pc-reset"><h4 class="pencraft pc-reset color-pub-primary-text-NyXPlw line-height-24-jnGwiv font-display-nhmvtD size-20-P_cSRT weight-bold-DmI9lw reset-IxiVJZ">You should never be responsible for what you don't control</h4><div class="pencraft pc-display-flex pc-gap-4 pc-alignItems-center pc-reset"><div class="pencraft pc-reset color-pub-secondary-text-hGQ02T line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA"><a href="https://substack.com/profile/87732486-alex-ewerlof" class="inheritColor-WetTGJ">Alex Ewerlöf</a></div><div class="pencraft pc-reset color-pub-secondary-text-hGQ02T reset-IxiVJZ">·</div><div class="pencraft pc-reset color-pub-secondary-text-hGQ02T line-height-20-t4M0El font-meta-MWBumP size-11-NuY2Zx weight-medium-fw81nC transform-uppercase-yKDgcq reset-IxiVJZ meta-EgzBVA">February 20, 2024</div></div><div class="pencraft pc-display-flex pc-gap-16 pc-paddingTop-0 pc-paddingBottom-0 pc-alignItems-center pc-reset"><a href="https://blog.alexewerlof.com/p/responsible-for-control" class="pencraft pc-reset align-center-y7ZD4w line-height-20-t4M0El font-text-qe4AeH size-13-hZTUKr weight-medium-fw81nC reset-IxiVJZ"><div class="pencraft pc-display-flex pc-gap-8 pc-alignItems-center pc-reset link-HREYZo"><span class="pencraft pc-reset color-accent-BVX_7M line-height-20-t4M0El font-text-qe4AeH size-14-MLPa7j weight-semibold-uqA4FV reset-IxiVJZ">Read full story</span><svg xmlns="http://www.w3.org/2000/svg" width="16" height="16" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-arrow-right"><path d="M5 12h14"></path><path d="m12 5 7 7-7 7"></path></svg></div></a></div></div></div></a></div><p>On the other hand, KPIs tend to measure the performance of a larger organization unit (e.g. a cluster of teams) which makes them harder to trace to an individual or service. The notion of ownership is not as granular.</p><h1 class="header-anchor-post">Time Horizon<div class="pencraft pc-display-flex pc-alignItems-center pc-position-absolute pc-reset header-anchor-parent"><div class="pencraft pc-display-contents pc-reset pubTheme-yiXxQA"><div id="§time-horizon" class="pencraft pc-reset header-anchor offset-top"></div><button tabindex="0" type="button" aria-label="Link" data-href="https://blog.alexewerlof.com/i/151250438/time-horizon" class="pencraft pc-reset pencraft iconButton-mq_Et5 iconButtonBase-dJGHgN buttonBase-GK1x3M buttonStyle-r7yGCK size_sm-G3LciD priority_secondary-S63h9o"><svg xmlns="http://www.w3.org/2000/svg" width="18" height="18" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-link"><path d="M10 13a5 5 0 0 0 7.54.54l3-3a5 5 0 0 0-7.07-7.07l-1.72 1.71"></path><path d="M14 11a5 5 0 0 0-7.54-.54l-3 3a5 5 0 0 0 7.07 7.07l1.71-1.71"></path></svg></button></div></div></h1><p>KPI/OKR is generally concerned with a longer time horizon. Usually, this time span is a quarter of the year. As a result, even if the KPI is not performing too well, the organization waits till the end of the quarter before a definitive assessment.</p><p>There’s also a risk that the org will be punished if the OKR is met too early: leadership may just move the goal post and set a more aggressive OKRs.</p><p>As a result, Parkinson’s law takes over:</p><blockquote><p><span>Work expands so as to fill the time available for its completion —</span><a href="https://en.wikipedia.org/wiki/Parkinson%27s_law">Parkinson’s law</a></p></blockquote><p><span>SLI on the other hand has a shorter </span><a href="https://blog.alexewerlof.com/p/compliance-period">compliance period</a><span> (also known as SLO window): typically, 30 days.</span></p><p><span>As we </span><a href="https://blog.alexewerlof.com/p/compliance-period">elaborated before</a><span>, the length of this window directly impacts forgiveness. SLOs having a shorter window than OKRs means that they are less forgiving towards service level degradation and require quicker reactions, hence the alerting.</span></p><h1 class="header-anchor-post">conclusion<div class="pencraft pc-display-flex pc-alignItems-center pc-position-absolute pc-reset header-anchor-parent"><div class="pencraft pc-display-contents pc-reset pubTheme-yiXxQA"><div id="§conclusion" class="pencraft pc-reset header-anchor offset-top"></div><button tabindex="0" type="button" aria-label="Link" data-href="https://blog.alexewerlof.com/i/151250438/conclusion" class="pencraft pc-reset pencraft iconButton-mq_Et5 iconButtonBase-dJGHgN buttonBase-GK1x3M buttonStyle-r7yGCK size_sm-G3LciD priority_secondary-S63h9o"><svg xmlns="http://www.w3.org/2000/svg" width="18" height="18" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-link"><path d="M10 13a5 5 0 0 0 7.54.54l3-3a5 5 0 0 0-7.07-7.07l-1.72 1.71"></path><path d="M14 11a5 5 0 0 0-7.54-.54l-3 3a5 5 0 0 0 7.07 7.07l1.71-1.71"></path></svg></button></div></div></h1><p>Let’s recap what we’ve learned:</p><ul><li><p><span>KPI: high level performance metrics with a wide range of applications. The keyword in KPI is </span><em>performance</em><span>.</span></p></li><li><p><span>SLI: concrete system reliability metrics. The keyword in SLI is </span><em>service</em><span>.</span></p></li></ul><div data-component-name="SubscribeWidget" class="subscribe-widget"><div class="pencraft pc-display-flex pc-justifyContent-center pc-reset"><div class="container-IpPqBD"><form action="/api/v1/free?nojs=true" method="post" novalidate class="form form-M5sC90"><input type="hidden" name="first_url" value/><input type="hidden" name="first_referrer" value/><input type="hidden" name="current_url"/><input type="hidden" name="current_referrer"/><input type="hidden" name="first_session_url" value/><input type="hidden" name="first_session_referrer" value/><input type="hidden" name="referral_code"/><input type="hidden" name="source" value="subscribe-widget"/><input type="hidden" name="referring_pub_id"/><input type="hidden" name="additional_referring_pub_ids"/><input type="hidden" name="source_post_id" value="151250438"/><div class="sideBySideWrap-vGXrwP"><div class="emailInputWrapper-QlA86j"><div class="pencraft pc-display-flex pc-minWidth-0 pc-position-relative pc-reset flex-auto-j3S2WA"><input name="email" placeholder="Type your email..." type="email" class="pencraft emailInput-OkIMeB input-y4v6N4 inputText-pV_yWb"/></div></div><button tabindex="0" type="submit" disabled class="pencraft pc-reset pencraft rightButton primary subscribe-btn button-VFSdkv buttonBase-GK1x3M"><span class="button-text ">Subscribe</span></button></div><div id="error-container"></div></form></div></div></div><p>Now, here’s the kicker! SLI can be a KPI!</p><div class="captioned-image-container"><figure><a target="_blank" href="https://substackcdn.com/image/fetch/$s_!O2_Y!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg" data-component-name="Image2ToDOM" class="image-link image2 is-viewable-img can-restack"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!O2_Y!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg 424w, https://substackcdn.com/image/fetch/$s_!O2_Y!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg 848w, https://substackcdn.com/image/fetch/$s_!O2_Y!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!O2_Y!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg 1456w" sizes="100vw"/><img src="https://substackcdn.com/image/fetch/$s_!O2_Y!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg" width="1080" height="1350" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/e15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1350,&quot;width&quot;:1080,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;No alt text provided for this image&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" alt="No alt text provided for this image" title="No alt text provided for this image" srcset="https://substackcdn.com/image/fetch/$s_!O2_Y!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg 424w, 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20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a><figcaption class="image-caption"><span>Source: </span><a href="https://www.linkedin.com/posts/eric-partaker-5560b92_83-of-companies-report-boosted-results-with-activity-7151197359819894785-V0iL/?utm_source=share&amp;utm_medium=member_desktop">LinkedIn</a></figcaption></figure></div><p>Let’s say your company sells an API (e.g. OpenAI API access) and charges the customers for every call.</p><p>In this scenario, there’s a business motivation to keep the API available as much as possible because downtime directly hurts that business model.</p><ul><li><p>OKR</p><ul><li><p>Objective: keep the system availability high</p></li><li><p>Key Results over the next quarter:</p><ul><li><p>Achieve 99.95% API availability</p></li><li><p>Reduce average response time to under 200ms</p></li><li><p>Decrease the number of critical incidents by 30%</p></li></ul></li><li><p>KPI</p><ul><li><p>Percentage of time the API is available and functioning correctly.</p></li><li><p>Time taken for the API to respond to requests.</p></li><li><p>Count of significant incidents impacting API availability.</p></li></ul></li></ul></li></ul><p>Turning the OKR/KPI to SLI/SLO we get:</p><ul><li><p><span>SLI: </span><a href="https://blog.alexewerlof.com/p/time-based-vs-event-based">Time-Based</a><span> Availability. SLO: 99.95% over 30 days</span></p></li><li><p><span>SLI: </span><a href="https://blog.alexewerlof.com/p/compliance-period">Event-Based</a><span> Latency. SLO: 95% of request latencies should be less than 200ms</span></p></li><li><p><span>SLI: </span><a href="https://blog.alexewerlof.com/p/compliance-period">Event-Based</a><span> non-critical incidents. SLO: 90% of incidents over the past 90 days are not critical</span></p></li></ul><p>Note that I used several assumptions that were not stated in the OKR or KPI:</p><ul><li><p>Availability SLI is calculated over 30 days instead of the 90 days that was stated in OKR (to motivate quicker reaction)</p></li><li><p><span>We used a 95% objective out of nowhere! Maybe that’s where the current </span><a href="https://blog.alexewerlof.com/p/sls">SLS</a><span> is at. Maybe it’s coming from the SLA. Instead of average, we replied on the notion of </span><a href="https://blog.alexewerlof.com/p/percentile">percentile</a><span> which is embedded in the SLI/SLO formula.</span></p></li><li><p>Currently 60% of incidents are non-critical (baseline wasn’t stated)</p></li></ul><p>And that’s the point! SLI/SLO are usually more detailed, normalized, and stricter towards failure.</p><p>Any KPI can be converted to SLI by adding the missing details, but there’s no guarantee that it’ll be desired by the audience or whether it makes sense.</p><p>You can also convert any SLI to a KPI by removing details and making it more friendly to a non-technical audience.</p><p>Finally, I just want to leave you with an important point: an SLO that is not tied to alerting is just an OKR! That’s because SLO is supposed to tie to accountability of the service owners and alerting is the absolute basic level to implement that accountability.</p><div data-attrs="{&quot;url&quot;:&quot;https://blog.alexewerlof.com/p/sli-vs-kpi?utm_source=substack&amp;utm_medium=email&amp;utm_content=share&amp;action=share&quot;,&quot;text&quot;:&quot;Share&quot;}" data-component-name="CaptionedButtonToDOM" class="captioned-button-wrap"><div class="preamble"><p class="cta-caption">If you find this post insightful, please share it in your circles to inspire others.</p></div><p data-attrs="{&quot;url&quot;:&quot;https://blog.alexewerlof.com/p/sli-vs-kpi?utm_source=substack&amp;utm_medium=email&amp;utm_content=share&amp;action=share&quot;,&quot;text&quot;:&quot;Share&quot;}" data-component-name="ButtonCreateButton" class="button-wrapper"><a href="https://blog.alexewerlof.com/p/sli-vs-kpi?utm_source=substack&amp;utm_medium=email&amp;utm_content=share&amp;action=share" class="button primary"><span>Share</span></a></p></div><div><hr/></div><p><em><a href="https://blog.alexewerlof.com/p/faq#%C2%A7payment">My monetization strategy</a><span> is to give away most content for free. 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Service Level Indicator (SLI) the same as Key Performance Indicator (KPI)? This article answers that question with lots of examples, elaborating the question from multiple dimensions: concern, time horizon, audience, actionability, etc.\",\"search_engine_title\":null,\"section_id\":67723,\"should_send_free_preview\":false,\"show_guest_bios\":true,\"slug\":\"sli-vs-kpi\",\"social_title\":null,\"subtitle\":\"Is Service Level Indicator (SLI) the same as Key Performance Indicator (KPI)?\",\"teaser_post_eligible\":true,\"title\":\"SLI vs KPI\",\"type\":\"newsletter\",\"video_upload_id\":null,\"write_comment_permissions\":\"everyone\",\"meter_type\":\"none\",\"live_stream_id\":null,\"is_published\":true,\"restacks\":0,\"reactions\":{\"\u2764\":10},\"top_exclusions\":[],\"pins\":[],\"section_pins\":[],\"has_shareable_clips\":false,\"previous_post_slug\":\"service-level-terminology\",\"next_post_slug\":\"mapping-reliability-to-accountability\",\"cover_image\":\"https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png\",\"cover_image_is_square\":false,\"cover_image_is_explicit\":false,\"videoUpload\":null,\"podcastFields\":{\"post_id\":151250438,\"podcast_episode_number\":null,\"podcast_season_number\":null,\"podcast_episode_type\":null,\"should_syndicate_to_other_feed\":null,\"syndicate_to_section_id\":null,\"hide_from_feed\":false,\"free_podcast_url\":null,\"free_podcast_duration\":null,\"preview_contains_ad\":false,\"was_imported_self_serve_sync\":false,\"draft_free_podcast_url\":null,\"draft_free_podcast_duration\":null},\"podcastUpload\":null,\"podcastPreviewUpload\":null,\"voiceover_upload_id\":null,\"voiceoverUpload\":null,\"has_voiceover\":false,\"description\":\"Is Service Level Indicator (SLI) the same as Key Performance Indicator (KPI)?\",\"body_html\":\"<p>I get this question a lot: is Service Level Indicator (SLI) the same as Key Performance Indicator (KPI)?</p><p>It depends! \uD83E\uDD13</p><p>Just joking. \uD83D\uDE04There are many similarities but also some important nuances that this article digs into.</p><p><em>Does it really matter to distinguish between the two? Well, that one actually depends!!! If the point of the language is to communicate ideas, it pays dividends to use the right word.</em></p><p>Both SLI and KPI got popularized by Google although they don\u2019t originate there. SLI and KPI are metrics where the \u201CI\u201D stands for indicator. Both metrics aim towards optimizing an <em>objective</em> and support data-driven decisions.</p><p><strong>But that\u2019s where the similarities end.</strong> There are fundamental differences between the two that stem from their purpose and expand to their scope, concern, audience, actions, and even formula.</p><p>What\u2019s interesting is that KPI/OKR and SLI/SLO are two systems that can be converted to each other with many nuances.</p><h1>Usage</h1><div class=\\\"captioned-image-container\\\"><figure><a class=\\\"image-link image2 is-viewable-img\\\" target=\\\"_blank\\\" href=\\\"https://substackcdn.com/image/fetch/$s_!P3BA!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png\\\" data-component-name=\\\"Image2ToDOM\\\"><div class=\\\"image2-inset\\\"><picture><source type=\\\"image/webp\\\" srcset=\\\"https://substackcdn.com/image/fetch/$s_!P3BA!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 424w, https://substackcdn.com/image/fetch/$s_!P3BA!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 848w, https://substackcdn.com/image/fetch/$s_!P3BA!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 1272w, https://substackcdn.com/image/fetch/$s_!P3BA!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 1456w\\\" sizes=\\\"100vw\\\"><img src=\\\"https://substackcdn.com/image/fetch/$s_!P3BA!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png\\\" width=\\\"711\\\" height=\\\"557\\\" data-attrs=\\\"{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:557,&quot;width&quot;:711,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:113682,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\\\" class=\\\"sizing-normal\\\" alt=\\\"\\\" srcset=\\\"https://substackcdn.com/image/fetch/$s_!P3BA!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 424w, https://substackcdn.com/image/fetch/$s_!P3BA!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 848w, https://substackcdn.com/image/fetch/$s_!P3BA!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 1272w, https://substackcdn.com/image/fetch/$s_!P3BA!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F1ab7f28f-a2f5-48cc-904e-d7731e06a87e_711x557.png 1456w\\\" sizes=\\\"100vw\\\" fetchpriority=\\\"high\\\"></picture><div class=\\\"image-link-expand\\\"><div class=\\\"pencraft pc-display-flex pc-gap-8 pc-reset\\\"><button tabindex=\\\"0\\\" type=\\\"button\\\" class=\\\"pencraft pc-reset pencraft icon-container restack-image\\\"><svg aria-hidden=\\\"true\\\" width=\\\"20\\\" height=\\\"20\\\" viewBox=\\\"0 0 20 20\\\" fill=\\\"none\\\" stroke-width=\\\"1.5\\\" stroke=\\\"var(--color-fg-primary)\\\" stroke-linecap=\\\"round\\\" stroke-linejoin=\\\"round\\\" xmlns=\\\"http://www.w3.org/2000/svg\\\"><g><path d=\\\"M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882\\\"></path></g></svg></button><button tabindex=\\\"0\\\" type=\\\"button\\\" class=\\\"pencraft pc-reset pencraft icon-container view-image\\\"><svg xmlns=\\\"http://www.w3.org/2000/svg\\\" width=\\\"20\\\" height=\\\"20\\\" viewBox=\\\"0 0 24 24\\\" fill=\\\"none\\\" stroke=\\\"currentColor\\\" stroke-width=\\\"2\\\" stroke-linecap=\\\"round\\\" stroke-linejoin=\\\"round\\\" class=\\\"lucide lucide-maximize2 lucide-maximize-2\\\"><polyline points=\\\"15 3 21 3 21 9\\\"></polyline><polyline points=\\\"9 21 3 21 3 15\\\"></polyline><line x1=\\\"21\\\" x2=\\\"14\\\" y1=\\\"3\\\" y2=\\\"10\\\"></line><line x1=\\\"3\\\" x2=\\\"10\\\" y1=\\\"21\\\" y2=\\\"14\\\"></line></svg></button></div></div></div></a><figcaption class=\\\"image-caption\\\">Typical KPIs and SLIs</figcaption></figure></div><p>Key Performance Indicators enjoy a large usage across business, sales, marketing, product, finance, and beyond.</p><p>KPIs cover various areas, including financial metrics (e.g. revenue per customer), product metrics (e.g. monthly active users), customer satisfaction, employee productivity, operational efficiency (e.g. number of goods produced without defects), culture (e.g. OfficeVibe scores), etc.</p><p>The target of KPIs can be to optimize systems, organizations, products, business, etc.</p><p><a href=\\\"https://blog.alexewerlof.com/p/sli\\\">Service Level Indicator</a> on the other hand is primarily concerned with reliability engineering and has seen an <a href=\\\"https://trends.google.com/trends/explore?date=today%205-y&amp;q=kpi,sli&amp;hl=en-GB\\\">uptake</a> due to the popularity of SRE (site reliability engineering) in recent years.</p><p>SLI covers various <a href=\\\"https://blog.alexewerlof.com/p/service\\\">services</a> metrics like latency, error rate, throughput, data consistency, cache hit ratio, etc.</p><p>In my experience KPIs are more high level and wishy washy leading to memes like this:</p><div class=\\\"captioned-image-container\\\"><figure><a class=\\\"image-link image2 is-viewable-img\\\" target=\\\"_blank\\\" href=\\\"https://substackcdn.com/image/fetch/$s_!cZoN!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg\\\" data-component-name=\\\"Image2ToDOM\\\"><div class=\\\"image2-inset\\\"><picture><source type=\\\"image/webp\\\" srcset=\\\"https://substackcdn.com/image/fetch/$s_!cZoN!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 424w, https://substackcdn.com/image/fetch/$s_!cZoN!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 848w, https://substackcdn.com/image/fetch/$s_!cZoN!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!cZoN!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 1456w\\\" sizes=\\\"100vw\\\"><img src=\\\"https://substackcdn.com/image/fetch/$s_!cZoN!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg\\\" width=\\\"566\\\" height=\\\"522.135\\\" data-attrs=\\\"{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:738,&quot;width&quot;:800,&quot;resizeWidth&quot;:566,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;Jacqueline Lemus on LinkedIn: KPI = keep people interested! \uD83D\uDC69\u200D\uD83D\uDCBB&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\\\" class=\\\"sizing-normal\\\" alt=\\\"Jacqueline Lemus on LinkedIn: KPI = keep people interested! \uD83D\uDC69\u200D\uD83D\uDCBB\\\" title=\\\"Jacqueline Lemus on LinkedIn: KPI = keep people interested! \uD83D\uDC69\u200D\uD83D\uDCBB\\\" srcset=\\\"https://substackcdn.com/image/fetch/$s_!cZoN!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 424w, https://substackcdn.com/image/fetch/$s_!cZoN!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 848w, https://substackcdn.com/image/fetch/$s_!cZoN!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!cZoN!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F68b0fea6-86dd-45a3-a580-2eccb390ece9_800x738.jpeg 1456w\\\" sizes=\\\"100vw\\\" loading=\\\"lazy\\\"></picture><div class=\\\"image-link-expand\\\"><div class=\\\"pencraft pc-display-flex pc-gap-8 pc-reset\\\"><button tabindex=\\\"0\\\" type=\\\"button\\\" class=\\\"pencraft pc-reset pencraft icon-container restack-image\\\"><svg aria-hidden=\\\"true\\\" width=\\\"20\\\" height=\\\"20\\\" viewBox=\\\"0 0 20 20\\\" fill=\\\"none\\\" stroke-width=\\\"1.5\\\" stroke=\\\"var(--color-fg-primary)\\\" stroke-linecap=\\\"round\\\" stroke-linejoin=\\\"round\\\" xmlns=\\\"http://www.w3.org/2000/svg\\\"><g><path d=\\\"M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882\\\"></path></g></svg></button><button tabindex=\\\"0\\\" type=\\\"button\\\" class=\\\"pencraft pc-reset pencraft icon-container view-image\\\"><svg xmlns=\\\"http://www.w3.org/2000/svg\\\" width=\\\"20\\\" height=\\\"20\\\" viewBox=\\\"0 0 24 24\\\" fill=\\\"none\\\" stroke=\\\"currentColor\\\" stroke-width=\\\"2\\\" stroke-linecap=\\\"round\\\" stroke-linejoin=\\\"round\\\" class=\\\"lucide lucide-maximize2 lucide-maximize-2\\\"><polyline points=\\\"15 3 21 3 21 9\\\"></polyline><polyline points=\\\"9 21 3 21 3 15\\\"></polyline><line x1=\\\"21\\\" x2=\\\"14\\\" y1=\\\"3\\\" y2=\\\"10\\\"></line><line x1=\\\"3\\\" x2=\\\"10\\\" y1=\\\"21\\\" y2=\\\"14\\\"></line></svg></button></div></div></div></a></figure></div><p>SLI on the other hand typically enjoys a more formal definition and scoped usage (reliability engineering). </p><h1>Normalization</h1><p>KPI does not need to be normalized. The metric datapoints can be any number. For example, the monthly active users (MAU). </p><p>SLI doesn\u2019t need to be normalized either. But it usually is:</p><div class=\\\"latex-rendered\\\" data-attrs=\\\"{&quot;persistentExpression&quot;:&quot;\\\\\\\\text{SLI} = \\\\\\\\frac{\\\\\\\\text{Good}}{\\\\\\\\text{Valid}} \\\\\\\\times 100&quot;,&quot;id&quot;:&quot;MXHPYELWVQ&quot;}\\\" data-component-name=\\\"LatexBlockToDOM\\\"></div><p>This normalization makes it much easier to assess the Service Level Status (<a href=\\\"https://blog.alexewerlof.com/p/sls\\\">SLS</a>) against the Service Level Objective (<a href=\\\"https://blog.alexewerlof.com/p/sls\\\">SLO</a>) which are both values between 0 to 100.</p><h1>Objective</h1><div class=\\\"captioned-image-container\\\"><figure><a class=\\\"image-link image2 is-viewable-img\\\" target=\\\"_blank\\\" href=\\\"https://substackcdn.com/image/fetch/$s_!JTt1!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png\\\" data-component-name=\\\"Image2ToDOM\\\"><div 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srcset=\\\"https://substackcdn.com/image/fetch/$s_!JTt1!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png 424w, https://substackcdn.com/image/fetch/$s_!JTt1!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png 848w, https://substackcdn.com/image/fetch/$s_!JTt1!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png 1272w, https://substackcdn.com/image/fetch/$s_!JTt1!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc411a150-9c81-4218-8b5a-2d710baf5076_711x452.png 1456w\\\" sizes=\\\"100vw\\\" loading=\\\"lazy\\\"></picture><div class=\\\"image-link-expand\\\"><div class=\\\"pencraft pc-display-flex pc-gap-8 pc-reset\\\"><button tabindex=\\\"0\\\" type=\\\"button\\\" class=\\\"pencraft pc-reset pencraft icon-container restack-image\\\"><svg aria-hidden=\\\"true\\\" width=\\\"20\\\" height=\\\"20\\\" viewBox=\\\"0 0 20 20\\\" fill=\\\"none\\\" stroke-width=\\\"1.5\\\" stroke=\\\"var(--color-fg-primary)\\\" stroke-linecap=\\\"round\\\" stroke-linejoin=\\\"round\\\" xmlns=\\\"http://www.w3.org/2000/svg\\\"><g><path d=\\\"M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882\\\"></path></g></svg></button><button tabindex=\\\"0\\\" type=\\\"button\\\" class=\\\"pencraft pc-reset pencraft icon-container view-image\\\"><svg xmlns=\\\"http://www.w3.org/2000/svg\\\" width=\\\"20\\\" height=\\\"20\\\" viewBox=\\\"0 0 24 24\\\" fill=\\\"none\\\" stroke=\\\"currentColor\\\" stroke-width=\\\"2\\\" stroke-linecap=\\\"round\\\" stroke-linejoin=\\\"round\\\" class=\\\"lucide lucide-maximize2 lucide-maximize-2\\\"><polyline points=\\\"15 3 21 3 21 9\\\"></polyline><polyline points=\\\"9 21 3 21 3 15\\\"></polyline><line x1=\\\"21\\\" x2=\\\"14\\\" y1=\\\"3\\\" y2=\\\"10\\\"></line><line x1=\\\"3\\\" x2=\\\"10\\\" y1=\\\"21\\\" y2=\\\"14\\\"></line></svg></button></div></div></div></a></figure></div><p>KPI is often used in combination with OKR (objectives and key results). For example:</p><ul><li><p>OKR</p><ul><li><p><strong>Objective:</strong> Increase Monthly Active Users (MAU)</p></li><li><p><strong>Key results</strong> within the next quarter</p><ul><li><p>Increase new user sign-ups by 20%</p></li><li><p>Improve user retention rate from 60% to 75%</p></li><li><p>Reduce user churn rate by 15%</p></li></ul></li></ul></li><li><p>KPI</p><ul><li><p>User sign-ups</p></li><li><p>User retention rate</p></li><li><p>User churn rate</p></li></ul></li></ul><p>One important point to call out is that OKRs are often <em>ambitious</em>. They <strong>shoot for the stars, aim for the moon</strong>. Even if you miss an OKR, you may still celebrate an improvement. \uD83C\uDF89</p><p>This is in stark contrast with how SLOs work. The mantra for SLO is to <strong>under promise and overdeliver</strong>. \uD83D\uDD28</p><p class=\\\"button-wrapper\\\" data-attrs=\\\"{&quot;url&quot;:&quot;https://blog.alexewerlof.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe now&quot;,&quot;action&quot;:null,&quot;class&quot;:null}\\\" data-component-name=\\\"ButtonCreateButton\\\"><a class=\\\"button primary\\\" href=\\\"https://blog.alexewerlof.com/subscribe?\\\"><span>Subscribe now</span></a></p><p>Example: say an SLO commits to 99% of requests in 28 days be responded without errors over a period of 28 days.</p><p>If we got 213M requests in that period, at least 210,870,000 requests should be responded to with no error (this number is the <a href=\\\"https://blog.alexewerlof.com/p/sls\\\">Service Level Status</a> in a given period).</p><p>Note that any higher number is fine (e.g. 212M) but lower (e.g. 200M) means that the SLO is breached.</p><h1>Accountability</h1><p>Both metrics have a notion of accountability. Although in my experience KPI and OKR are usually hard to implement in a way that drives action and is present on a day-to-day basis at the leaf nodes of the organization tree. They\u2019re primarily used by upper and middle management to align key performance metrics.</p><p>SLI on the other hand, gets its meaning from the SLO that sets the minimum expectation.</p><p>A good SLO should be tied to alerting so that the <a href=\\\"https://blog.alexewerlof.com/p/service-level-terminology\\\">service owner</a> gets to action as soon as the service level is degraded.</p><div class=\\\"captioned-image-container\\\"><figure><a class=\\\"image-link image2 is-viewable-img\\\" target=\\\"_blank\\\" href=\\\"https://substackcdn.com/image/fetch/$s_!vRar!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png\\\" data-component-name=\\\"Image2ToDOM\\\"><div class=\\\"image2-inset\\\"><picture><source type=\\\"image/webp\\\" srcset=\\\"https://substackcdn.com/image/fetch/$s_!vRar!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 424w, https://substackcdn.com/image/fetch/$s_!vRar!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 848w, https://substackcdn.com/image/fetch/$s_!vRar!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 1272w, https://substackcdn.com/image/fetch/$s_!vRar!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 1456w\\\" sizes=\\\"100vw\\\"><img src=\\\"https://substackcdn.com/image/fetch/$s_!vRar!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png\\\" width=\\\"1041\\\" height=\\\"1033\\\" data-attrs=\\\"{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1033,&quot;width&quot;:1041,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\\\" class=\\\"sizing-normal\\\" alt=\\\"\\\" srcset=\\\"https://substackcdn.com/image/fetch/$s_!vRar!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 424w, https://substackcdn.com/image/fetch/$s_!vRar!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 848w, https://substackcdn.com/image/fetch/$s_!vRar!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 1272w, https://substackcdn.com/image/fetch/$s_!vRar!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6464c97e-a1d6-42c8-bde0-c9bc90b16a97_1041x1033.png 1456w\\\" sizes=\\\"100vw\\\" loading=\\\"lazy\\\"></picture><div class=\\\"image-link-expand\\\"><div class=\\\"pencraft pc-display-flex pc-gap-8 pc-reset\\\"><button tabindex=\\\"0\\\" type=\\\"button\\\" class=\\\"pencraft pc-reset pencraft icon-container restack-image\\\"><svg aria-hidden=\\\"true\\\" width=\\\"20\\\" height=\\\"20\\\" viewBox=\\\"0 0 20 20\\\" fill=\\\"none\\\" stroke-width=\\\"1.5\\\" stroke=\\\"var(--color-fg-primary)\\\" stroke-linecap=\\\"round\\\" stroke-linejoin=\\\"round\\\" xmlns=\\\"http://www.w3.org/2000/svg\\\"><g><path d=\\\"M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882\\\"></path></g></svg></button><button tabindex=\\\"0\\\" type=\\\"button\\\" class=\\\"pencraft pc-reset pencraft icon-container view-image\\\"><svg xmlns=\\\"http://www.w3.org/2000/svg\\\" width=\\\"20\\\" height=\\\"20\\\" viewBox=\\\"0 0 24 24\\\" fill=\\\"none\\\" stroke=\\\"currentColor\\\" stroke-width=\\\"2\\\" stroke-linecap=\\\"round\\\" stroke-linejoin=\\\"round\\\" class=\\\"lucide lucide-maximize2 lucide-maximize-2\\\"><polyline points=\\\"15 3 21 3 21 9\\\"></polyline><polyline points=\\\"9 21 3 21 3 15\\\"></polyline><line x1=\\\"21\\\" x2=\\\"14\\\" y1=\\\"3\\\" y2=\\\"10\\\"></line><line x1=\\\"3\\\" x2=\\\"10\\\" y1=\\\"21\\\" y2=\\\"14\\\"></line></svg></button></div></div></div></a><figcaption class=\\\"image-caption\\\">Source: <a href=\\\"https://blog.alexewerlof.com/p/service-level-terminology\\\">Service Level Terminology</a></figcaption></figure></div><p>Moreover, a good SLI measures only what is <a href=\\\"https://blog.alexewerlof.com/p/you-build-it-you-own-it\\\">owned</a> by the service owner and nothing more. In fact, you should never be responsible for what is out of your control.</p><div class=\\\"digest-post-embed\\\" data-attrs=\\\"{&quot;nodeId&quot;:&quot;2a3e3cc8-7eca-499a-bc3f-5316818927d3&quot;,&quot;caption&quot;:&quot;One of my favorite sentences to say during Service Level Workshops is:&quot;,&quot;cta&quot;:null,&quot;showBylines&quot;:true,&quot;showDescription&quot;:true,&quot;showImage&quot;:true,&quot;size&quot;:&quot;sm&quot;,&quot;isEditorNode&quot;:true,&quot;title&quot;:&quot;You should never be responsible for what you don't control&quot;,&quot;publishedBylines&quot;:[{&quot;id&quot;:87732486,&quot;name&quot;:&quot;Alex Ewerl\u00F6f&quot;,&quot;bio&quot;:&quot;Writes about technical leadership, growth mindset, and system reliability engineering.\\\\n\\\\nSenior Staff Engineer, MSc Systems Engineering from KTH, Stockholmer, dad, amateur artist.\\\\n\\\\nRead more here: https://www.alexewerlof.com/who&quot;,&quot;photo_url&quot;:&quot;https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fe2713990-da82-481b-b579-01a7aaa5b85b_560x560.jpeg&quot;,&quot;is_guest&quot;:false,&quot;bestseller_tier&quot;:null}],&quot;post_date&quot;:&quot;2024-02-20T18:54:47.854Z&quot;,&quot;cover_image&quot;:&quot;https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F7855ff73-782f-4250-b6f4-f6bb636d37af_1067x738.png&quot;,&quot;cover_image_alt&quot;:null,&quot;canonical_url&quot;:&quot;https://blog.alexewerlof.com/p/responsible-for-control&quot;,&quot;section_name&quot;:&quot;Reliability Engineering&quot;,&quot;video_upload_id&quot;:null,&quot;id&quot;:141855236,&quot;type&quot;:&quot;newsletter&quot;,&quot;reaction_count&quot;:19,&quot;comment_count&quot;:0,&quot;publication_id&quot;:null,&quot;publication_name&quot;:&quot;Alex Ewerl\u00F6f Notes&quot;,&quot;publication_logo_url&quot;:&quot;https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F8c58cb07-9341-402b-bcdb-9fa767c2cdac_500x500.png&quot;,&quot;belowTheFold&quot;:true,&quot;youtube_url&quot;:null,&quot;show_links&quot;:null,&quot;feed_url&quot;:null}\\\"></div><p>On the other hand, KPIs tend to measure the performance of a larger organization unit (e.g. a cluster of teams) which makes them harder to trace to an individual or service. The notion of ownership is not as granular.</p><h1>Time Horizon</h1><p>KPI/OKR is generally concerned with a longer time horizon. Usually, this time span is a quarter of the year. As a result, even if the KPI is not performing too well, the organization waits till the end of the quarter before a definitive assessment.</p><p>There\u2019s also a risk that the org will be punished if the OKR is met too early: leadership may just move the goal post and set a more aggressive OKRs.</p><p>As a result, Parkinson\u2019s law takes over:</p><blockquote><p>Work expands so as to fill the time available for its completion \u2014<a href=\\\"https://en.wikipedia.org/wiki/Parkinson%27s_law\\\">Parkinson\u2019s law</a></p></blockquote><p>SLI on the other hand has a shorter <a href=\\\"https://blog.alexewerlof.com/p/compliance-period\\\">compliance period</a> (also known as SLO window): typically, 30 days.</p><p>As we <a href=\\\"https://blog.alexewerlof.com/p/compliance-period\\\">elaborated before</a>, the length of this window directly impacts forgiveness. SLOs having a shorter window than OKRs means that they are less forgiving towards service level degradation and require quicker reactions, hence the alerting.</p><h1>conclusion</h1><p>Let\u2019s recap what we\u2019ve learned:</p><ul><li><p>KPI: high level performance metrics with a wide range of applications. The keyword in KPI is <em>performance</em>.</p></li><li><p>SLI: concrete system reliability metrics. The keyword in SLI is <em>service</em>.</p></li></ul><p class=\\\"button-wrapper\\\" data-attrs=\\\"{&quot;url&quot;:&quot;https://blog.alexewerlof.com/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe now&quot;,&quot;action&quot;:null,&quot;class&quot;:null}\\\" data-component-name=\\\"ButtonCreateButton\\\"><a class=\\\"button primary\\\" href=\\\"https://blog.alexewerlof.com/subscribe?\\\"><span>Subscribe now</span></a></p><p>Now, here\u2019s the kicker! SLI can be a KPI!</p><div class=\\\"captioned-image-container\\\"><figure><a class=\\\"image-link image2 is-viewable-img\\\" target=\\\"_blank\\\" href=\\\"https://substackcdn.com/image/fetch/$s_!O2_Y!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg\\\" data-component-name=\\\"Image2ToDOM\\\"><div class=\\\"image2-inset\\\"><picture><source type=\\\"image/webp\\\" srcset=\\\"https://substackcdn.com/image/fetch/$s_!O2_Y!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg 424w, https://substackcdn.com/image/fetch/$s_!O2_Y!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg 848w, https://substackcdn.com/image/fetch/$s_!O2_Y!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!O2_Y!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg 1456w\\\" sizes=\\\"100vw\\\"><img src=\\\"https://substackcdn.com/image/fetch/$s_!O2_Y!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg\\\" width=\\\"1080\\\" height=\\\"1350\\\" data-attrs=\\\"{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/e15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1350,&quot;width&quot;:1080,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;No alt text provided for this image&quot;,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\\\" class=\\\"sizing-normal\\\" alt=\\\"No alt text provided for this image\\\" title=\\\"No alt text provided for this image\\\" srcset=\\\"https://substackcdn.com/image/fetch/$s_!O2_Y!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg 424w, https://substackcdn.com/image/fetch/$s_!O2_Y!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg 848w, https://substackcdn.com/image/fetch/$s_!O2_Y!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!O2_Y!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe15ae30f-7fbc-44a3-8406-13a0a11c90c5_1080x1350.jpeg 1456w\\\" sizes=\\\"100vw\\\" loading=\\\"lazy\\\"></picture><div class=\\\"image-link-expand\\\"><div class=\\\"pencraft pc-display-flex pc-gap-8 pc-reset\\\"><button tabindex=\\\"0\\\" type=\\\"button\\\" class=\\\"pencraft pc-reset pencraft icon-container restack-image\\\"><svg aria-hidden=\\\"true\\\" width=\\\"20\\\" height=\\\"20\\\" viewBox=\\\"0 0 20 20\\\" fill=\\\"none\\\" stroke-width=\\\"1.5\\\" stroke=\\\"var(--color-fg-primary)\\\" stroke-linecap=\\\"round\\\" stroke-linejoin=\\\"round\\\" xmlns=\\\"http://www.w3.org/2000/svg\\\"><g><path d=\\\"M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882\\\"></path></g></svg></button><button tabindex=\\\"0\\\" type=\\\"button\\\" class=\\\"pencraft pc-reset pencraft icon-container view-image\\\"><svg xmlns=\\\"http://www.w3.org/2000/svg\\\" width=\\\"20\\\" height=\\\"20\\\" viewBox=\\\"0 0 24 24\\\" fill=\\\"none\\\" stroke=\\\"currentColor\\\" stroke-width=\\\"2\\\" stroke-linecap=\\\"round\\\" stroke-linejoin=\\\"round\\\" class=\\\"lucide lucide-maximize2 lucide-maximize-2\\\"><polyline points=\\\"15 3 21 3 21 9\\\"></polyline><polyline points=\\\"9 21 3 21 3 15\\\"></polyline><line x1=\\\"21\\\" x2=\\\"14\\\" y1=\\\"3\\\" y2=\\\"10\\\"></line><line x1=\\\"3\\\" x2=\\\"10\\\" y1=\\\"21\\\" y2=\\\"14\\\"></line></svg></button></div></div></div></a><figcaption class=\\\"image-caption\\\">Source: <a href=\\\"https://www.linkedin.com/posts/eric-partaker-5560b92_83-of-companies-report-boosted-results-with-activity-7151197359819894785-V0iL/?utm_source=share&amp;utm_medium=member_desktop\\\">LinkedIn</a></figcaption></figure></div><p>Let\u2019s say your company sells an API (e.g. OpenAI API access) and charges the customers for every call.</p><p>In this scenario, there\u2019s a business motivation to keep the API available as much as possible because downtime directly hurts that business model.</p><ul><li><p>OKR</p><ul><li><p>Objective: keep the system availability high</p></li><li><p>Key Results over the next quarter:</p><ul><li><p>Achieve 99.95% API availability</p></li><li><p>Reduce average response time to under 200ms</p></li><li><p>Decrease the number of critical incidents by 30%</p></li></ul></li><li><p>KPI</p><ul><li><p>Percentage of time the API is available and functioning correctly.</p></li><li><p>Time taken for the API to respond to requests.</p></li><li><p>Count of significant incidents impacting API availability.</p></li></ul></li></ul></li></ul><p>Turning the OKR/KPI to SLI/SLO we get:</p><ul><li><p>SLI: <a href=\\\"https://blog.alexewerlof.com/p/time-based-vs-event-based\\\">Time-Based</a> Availability. SLO: 99.95% over 30 days</p></li><li><p>SLI: <a href=\\\"https://blog.alexewerlof.com/p/compliance-period\\\">Event-Based</a> Latency. SLO: 95% of request latencies should be less than 200ms</p></li><li><p>SLI: <a href=\\\"https://blog.alexewerlof.com/p/compliance-period\\\">Event-Based</a> non-critical incidents. SLO: 90% of incidents over the past 90 days are not critical</p></li></ul><p>Note that I used several assumptions that were not stated in the OKR or KPI:</p><ul><li><p>Availability SLI is calculated over 30 days instead of the 90 days that was stated in OKR (to motivate quicker reaction)</p></li><li><p>We used a 95% objective out of nowhere! Maybe that\u2019s where the current <a href=\\\"https://blog.alexewerlof.com/p/sls\\\">SLS</a> is at. Maybe it\u2019s coming from the SLA. Instead of average, we replied on the notion of <a href=\\\"https://blog.alexewerlof.com/p/percentile\\\">percentile</a> which is embedded in the SLI/SLO formula.</p></li><li><p>Currently 60% of incidents are non-critical (baseline wasn\u2019t stated)</p></li></ul><p>And that\u2019s the point! SLI/SLO are usually more detailed, normalized, and stricter towards failure.</p><p>Any KPI can be converted to SLI by adding the missing details, but there\u2019s no guarantee that it\u2019ll be desired by the audience or whether it makes sense.</p><p>You can also convert any SLI to a KPI by removing details and making it more friendly to a non-technical audience.</p><p>Finally, I just want to leave you with an important point: an SLO that is not tied to alerting is just an OKR! That\u2019s because SLO is supposed to tie to accountability of the service owners and alerting is the absolute basic level to implement that accountability.</p><div class=\\\"captioned-button-wrap\\\" data-attrs=\\\"{&quot;url&quot;:&quot;https://blog.alexewerlof.com/p/sli-vs-kpi?utm_source=substack&utm_medium=email&utm_content=share&action=share&quot;,&quot;text&quot;:&quot;Share&quot;}\\\" data-component-name=\\\"CaptionedButtonToDOM\\\"><div class=\\\"preamble\\\"><p class=\\\"cta-caption\\\">If you find this post insightful, please share it in your circles to inspire others.</p></div><p class=\\\"button-wrapper\\\" data-attrs=\\\"{&quot;url&quot;:&quot;https://blog.alexewerlof.com/p/sli-vs-kpi?utm_source=substack&utm_medium=email&utm_content=share&action=share&quot;,&quot;text&quot;:&quot;Share&quot;}\\\" data-component-name=\\\"ButtonCreateButton\\\"><a class=\\\"button primary\\\" href=\\\"https://blog.alexewerlof.com/p/sli-vs-kpi?utm_source=substack&utm_medium=email&utm_content=share&action=share\\\"><span>Share</span></a></p></div><div><hr></div><p><em><a href=\\\"https://blog.alexewerlof.com/p/faq#%C2%A7payment\\\">My monetization strategy</a>&nbsp;is to give away most content for free. However, these posts take anywhere from a few hours to a few days to draft, edit, research, illustrate, and publish. I pull these hours from my private time, vacation days and weekends.</em></p><p><em>You can support me by sparing a few bucks for a paid subscription. As a token of appreciation, you get access to the Pro-Tips sections as well as my online book&nbsp;<a href=\\\"https://blog.alexewerlof.com/p/rem\\\">Reliability Engineering Mindset</a>. Right now, you can get 20% off via&nbsp;<a href=\\\"https://blog.alexewerlof.com/protipsdiscount\\\">this link</a>. You can also <a href=\\\"https://blog.alexewerlof.com/leaderboard\\\">invite your friends</a> to gain free access.</em></p>\",\"has_dynamic_content\":false,\"truncated_body_text\":\"I get this question a lot: is Service Level Indicator (SLI) the same as Key Performance Indicator (KPI)?\",\"wordcount\":1360,\"post_preview_limit\":null,\"language\":\"en\",\"postTags\":[{\"id\":\"16ae81cf-b8ab-4197-a786-e4fb8710a014\",\"publication_id\":1002265,\"name\":\"kpi\",\"slug\":\"kpi\",\"hidden\":false},{\"id\":\"4010aeb1-ad54-4c2f-85dc-901526c78867\",\"publication_id\":1002265,\"name\":\"sli\",\"slug\":\"sli\",\"hidden\":false},{\"id\":\"534a54d4-65f3-4e24-88c0-c603442c7530\",\"publication_id\":1002265,\"name\":\"slo\",\"slug\":\"slo\",\"hidden\":false},{\"id\":\"5e680a13-60a3-45b8-b0a0-6275b3f1ff23\",\"publication_id\":1002265,\"name\":\"measurement\",\"slug\":\"measurement\",\"hidden\":false},{\"id\":\"ad3f6666-21d7-4a1b-bbc3-162fbd74e32d\",\"publication_id\":1002265,\"name\":\"performance\",\"slug\":\"performance\",\"hidden\":false},{\"id\":\"b5af8f90-2f3f-425e-8033-998082b18dee\",\"publication_id\":1002265,\"name\":\"okr\",\"slug\":\"okr\",\"hidden\":false},{\"id\":\"ca5bffd5-ee68-4ccf-b626-27c834d348e8\",\"publication_id\":1002265,\"name\":\"sls\",\"slug\":\"sls\",\"hidden\":false},{\"id\":\"e52ec82c-ab7b-45ab-8f2d-6102570d3bf0\",\"publication_id\":1002265,\"name\":\"metrics\",\"slug\":\"metrics\",\"hidden\":false}],\"postCountryBlocks\":[],\"headlineTest\":null,\"coverImagePalette\":{\"Vibrant\":{\"rgb\":[222,165,75],\"population\":44},\"DarkVibrant\":{\"rgb\":[4,20,36],\"population\":4184},\"LightVibrant\":{\"rgb\":[234.456338028169,198.97183098591552,142.943661971831],\"population\":0},\"Muted\":{\"rgb\":[144,115,63],\"population\":211},\"DarkMuted\":{\"rgb\":[97,83,56],\"population\":211},\"LightMuted\":{\"rgb\":[129.2957746478873,88.35211267605635,23.7042253521127],\"population\":0}},\"publishedBylines\":[{\"id\":87732486,\"name\":\"Alex Ewerl\u00F6f\",\"handle\":\"alexewerlof\",\"photo_url\":\"https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2Fe2713990-da82-481b-b579-01a7aaa5b85b_560x560.jpeg\",\"bio\":\"Writes about technical leadership, growth mindset, and system reliability engineering. 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