Key Performance Indicators (KPIs)

What are they?

According to, Key Performance Indicators, or KPI’s, are quantifiable metrics that help leaders and managers gauge their organization’s performance over time. They help determine actual strategic, financial, and operational achievements as compared to forecasts or objectives that were established, as well as how they compare with other comparable actors in their organization, industry, ecosystem, or region.

When chosen at the company level, KPIs typically are used to define what “success” means for the company in its industry, or in the context of it’s own objectives. They typically include metrics related to financial performance, customer-relationships, and process or operational efficiencies.

Financial metrics typically include items such as sales growth for various products or product lines, profit margins of various types, and return of assets of various types and liquidity ratios.

Sales, client, or customer relationship metrics might include selling/marketing cost-per-sale efficiency, customer satisfaction, and customer retention.

Process and Operational metrics would include task or work efficiency, worker engagement, and productivity measurements.

Organizations typically track and measure KPIs using analytical and reporting software tools.

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