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KPIs

A key performance indicator (KPI) is a measurable value that demonstrates how effectively an organization is achieving a key business objective. KPIs are used to quantify performance and guide decision-making, distinguishing strategic goals from broader metrics by focusing on indicators that are critical to success. They are typically tied to strategy, targets, and time frames.

Selecting KPIs involves aligning with objectives, ensuring they are SMART (specific, measurable, achievable, relevant, time-bound), and

Examples by domain include: in sales, revenue growth, win rate, and pipeline coverage; in marketing, cost per

Implementation and governance involve establishing data sources, ensuring data quality, assigning ownership, setting targets, and establishing

deciding
between
leading
indicators
(predictive)
and
lagging
indicators
(outcome-based).
Best
practice
favors
a
small
set
of
well-defined
KPIs
that
cover
outcome,
process,
and
input
aspects,
and
that
can
be
tracked
with
reliable
data.
acquisition,
customer
lifetime
value,
and
lead-to-customer
conversion;
in
operations,
cycle
time,
throughput,
and
first-pass
yield;
in
human
resources,
turnover
rate,
time
to
fill,
and
training
completion.
review
cadences
to
adjust
as
strategy
evolves.
KPIs
are
most
effective
when
integrated
into
dashboards
and
performance
reviews.
Limitations
include
data
quality
issues,
the
risk
of
focusing
on
metrics
rather
than
outcomes,
and
the
potential
to
overload
with
indicators.
KPIs
are
commonly
used
within
broader
performance
management
frameworks
such
as
the
balanced
scorecard.