KPI = Key Performance Indicator

What does it mean?

In business, a Key Performance Indicator (KPI) is a quantifiable metric used to track progress towards specific goals and objectives. KPIs act as a compass, guiding businesses by highlighting areas exceeding expectations, falling short, or requiring adjustments in strategy. Selecting the right KPIs depends on the specific goals of a team, department, or the entire organization.

Example:

For instance, a sales team might have a KPI of "Monthly New Customer Acquisition." By tracking this metric, the sales manager can assess the team's effectiveness in generating leads and closing deals. If the KPI consistently falls below target, the manager can analyze the data and identify areas for improvement, such as refining sales training or adjusting marketing strategies. By focusing on relevant KPIs, businesses can make data-driven decisions to optimize performance and achieve lasting success.