Strategy
KPI (Key Performance Indicator)
Also known as: Key Performance Indicator & KPIs
Plain English
A metric that shows how well you’re doing.
Definition
A KPI is a measurable value used to track progress towards a specific business objective.
In practice
Used to monitor glossaryPerformancePerformance refers to how quickly and efficiently a system responds to user actions and processes tasks.Open glossary term and inform decision-making across teams and products.
In context
Every one creates glossaryBehaviourBehaviour refers to how users interact with a system, including actions, patterns, and responses.Open glossary term. Choosing average handling time as a support KPI produces shorter calls, and the effect on resolution is the thing nobody measured.
The reality
Too many KPIs dilute focus - only a few truly matter.
Compared with
KPI vs Metric
A metric is anything you can measure. A KPI is a metric elevated to indicate progress against an objective. Most dashboards report dozens of metrics and rather few genuine KPIs.
FAQ
Common questions
A few practical answers to the questions that usually come up around this term.
What is a KPI?
A KPI is a metric used to measure progress towards a goal.
Why are KPIs important?
They help track glossaryPerformancePerformance refers to how quickly and efficiently a system responds to user actions and processes tasks.Open glossary term and guide decisions.
What makes a good KPI?
It is measurable, relevant, and aligned with objectives.
What is the difference between a KPI and a metric?
A KPI is tied to a goal, while a metric is any measurement.
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