Key Performance Indicator
A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively an organization is achieving its key business objectives. Organizations use KPIs to evaluate their success at reaching targets, which can vary by industry and specific goals. Common examples of KPIs include metrics like sales growth, customer satisfaction, and employee turnover rate.
KPIs can be high-level, focusing on the overall performance of the organization, or low-level, concentrating on departmental or individual processes. By tracking these indicators, businesses can make informed decisions, identify areas for improvement, and align their strategies with their objectives.