A key performance indicator (KPI) is a measurable value that is used to assess the performance of an organization, team, or individual against a set of targets or objectives. KPIs are often used to track progress towards specific goals, such as increasing sales, improving customer satisfaction, or reducing costs.
For example, a company may set a KPI to increase its sales by 10% over the next year. To track progress towards this goal, the company may track the total number of sales made each month and compare it to the same period in the previous year. If the company is on track to achieve its goal, the KPI will show an increase in sales of at least 10% over the course of the year.
KPIs are an important tool for organizations, as they provide a clear and quantifiable way to measure progress towards specific goals. By regularly tracking and analyzing KPIs, organizations can identify areas of success and areas for improvement, and make informed decisions about how to achieve their goals.