Small Business Glossary and Definitions

Key Performance Indicators (KPIs) are performance metrics that indicate how well an organization is achieving its goals. A quality KPI can be created by developing a process for producing a result, how that result aligns with a goal, a method for qualitative and quantitative measurement of the result, and ways for addressing failures or underperformance.

A KPI can provide an objective measurement for success. It can track changes over time, indicate areas of achievement and expose areas for improvement. KPIs will vary according to industry and the particular goals of an organization.