Glossary · K
Key Performance Indicators (KPI)
Key Performance Indicator
Measures of progress towards business objectives
What it means
A key performance indicator is a measure selected to show progress towards an important objective. A useful KPI has a clear definition, data source, owner and review period. It should help guide decisions rather than simply produce an attractive number.
What it means for a business
A sales team might track qualified opportunities and completed sales, while a manufacturer tracks delivery performance or first-pass yield. Teams should choose a manageable set of indicators and examine them together to avoid improving one measure at the expense of another.