What are "key performance indicators" (KPIs)?

Key performance indicators (KPIs) are specific, measurable metrics that organizations use to evaluate their success in achieving key business objectives. They play a crucial role in understanding how effectively a company or team is meeting its goals, which can be financial, operational, or strategic in nature.

By using KPIs, organizations can gauge their performance and identify areas for improvement. They serve as benchmarks that help track progress over time, inform decision-making, and ensure that everyone in the organization is aligned with the overall strategic goals. This focus on measurable outcomes distinguishes KPIs from other aspects of organizational management, making them a critical tool for monitoring and driving performance.