KPI stands for “Key Performance Indicator.” It is a measurable value that indicates how effectively a company is achieving its key business objectives.
KPIs are used to track and measure progress towards specific goals and objectives and can be used at various levels within an organization, from individual employees to departments to the overall company. KPIs are typically tied to specific targets or benchmarks and can be used to monitor performance over time.
Examples of KPIs include financial metrics such as revenue growth, profit margin, and return on investment (ROI), as well as non-financial metrics such as customer satisfaction, employee engagement, and website traffic. The selection of KPIs will depend on the specific goals and objectives of the business and should be aligned with the overall business strategy.
KPIs are an important tool for measuring and improving performance, as they provide a clear and objective measure of progress toward specific goals. By tracking KPIs, businesses can identify areas where they are underperforming and take action to address these issues, as well as celebrate successes and continue to build momentum toward achieving their objectives.