OKRs, KPIs & performance goals · Core

Variance

Also called: deviation, plan variance

ELI5

The difference between actual and planned performance.

Used in conversation

“The number is useful only if everyone calculates variance the same way.”

Pitch context

You will see “Variance” in organisation plans, workforce reviews, change programmes and people reports when the discussion reaches okrs, kpis & performance goals.

Why it matters: In okrs, kpis & performance goals, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

Sources & evidence · 8

Direct term-level sources and supporting source families.