What are key performance indicators (KPIs)?

Key performance indicators (KPIs) are specific metrics that organizations use to evaluate their success in achieving set objectives. They provide measurable values that help assess the effectiveness of various strategies and initiatives within a company. By using KPIs, businesses can track progress, identify areas for improvement, and make informed decisions based on data-driven insights.

For instance, a company might establish KPIs related to sales growth, customer satisfaction, or operational efficiency, allowing them to gauge their performance against these critical targets. This focus on quantifiable outcomes makes KPIs an essential part of performance management and strategic planning, thereby facilitating alignment between everyday activities and long-term goals.