What does KPI stand for?

KPI stands for Key Performance Indicator, a measurable value used to track progress toward specific goals.

How is a KPI different from a metric?

A metric is any measurable value, while a KPI is a metric tied directly to a strategic objective. All KPIs are metrics, but not all metrics are KPIs.

Why do companies use KPIs?

Companies use KPIs to monitor performance, ensure goal alignment, and make data-driven decisions that lead to improved outcomes.

How often should KPIs be measured?

KPIs can be tracked daily, weekly, monthly, or quarterly, depending on the nature of the business and its goals. Consistency is key to spotting trends and making adjustments early.

What makes a KPI effective?

An effective KPI is specific, measurable, achievable, relevant, and time-bound — following the S.M.A.R.T. framework.

Can KPIs change over time?

Yes. As business priorities and market conditions evolve, KPIs should be reviewed and adjusted to stay aligned with new objectives.

Key Performance Indicator (KPI)

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