Key Performance Indicator (KPI)
A Key Performance Indicator (KPI) is a quantifiable measure used to evaluate the success of an organization, a specific activity, or the progress toward an intended result. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision-making, and help focus attention on what matters most. They are essential for setting targets, tracking progress, and making informed decisions across various business functions such as finance, HR, marketing, and sales.
KPIs can be high-level, measuring the overall performance of a company, or low-level, focusing on the impact of tasks and projects led by individual teams. It is important to define KPIs properly to ensure they are realistic and aligned with the organizations goals. A KPI dashboard is often used to display all the metrics being measured to track progress toward individual KPIs, team objectives, and company goals.
In summary, KPIs are critical quantifiable indicators that help organizations measure and evaluate their performance, make informed decisions, and work towards achieving their desired results.
