what are kpis

KPI stands for Key Performance Indicator, which is a type of performance measurement used to evaluate the success of an organization or a particular activity in which it engages. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making, and help focus attention on what matters most. KPIs are quantifiable measures that gauge a companys performance against a set of targets, objectives, or industry peers. They are most commonly defined in a way that is understandable, meaningful, and measurable, and they are rarely defined in such a way that their fulfillment would be hampered by factors seen as non-controllable by the organizations or individuals responsible. KPIs should be set at a senior level within an organization and cascaded through all levels of management. KPIs come in many flavors and are tied to strategic goals. They provide objective evidence of progress towards achieving a desired result and measure what is intended to be measured to help inform better decision making. KPIs are an important tool businesses use to evaluate achievements, analyze issues, and solve problems.