Definition: KPI, or Key Performance Indicator, is a measurable value that demonstrates how effectively a company, team, or individual is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets.
Purpose: KPIs serve as a vital tool for performance measurement and strategic management. They help businesses focus on what matters most by identifying areas of improvement, enabling informed decision-making, and aligning activities with overarching business goals and strategies.
Types and Examples: KPIs can be quantitative or qualitative, financial or non-financial. Examples include sales revenue, customer satisfaction scores, conversion rates, and employee engagement levels. The selection of KPIs depends on specific business objectives and the industry context, ensuring relevance and alignment with strategic priorities.
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