KPI
kay-pee-EYE
/ˌkeɪ piː ˈaɪ/
Key Performance Indicator; a quantifiable measure used to evaluate the success of an organization or employee in meeting objectives.
A KPI is not just any data point; it is a 'key' one that directly relates to the most important goals of the business.
The story behind the word. The term gained popularity in the 1990s as businesses moved toward 'Data-Driven Decision Making'. It reflects the modern corporate need to distill complex human work into simple, 'key' numbers that can be tracked on a dashboard.
Word relationships
- indicator: An indicator is a general sign of something; a KPI is a specific, agreed-upon business measurement.
Commonly confused with
- metric: A metric is any measurement; a KPI is a critical measurement that defines success.
Word family
- KPIs (noun): Plural form of Key Performance Indicator.
Collocations
- track KPIs
- meet a KPI
- define KPIs
- primary KPI
Example sentences
- "Our primary KPI for this quarter is to reduce customer churn by 15%." A quarterly business review.
- "If you measure everything, you measure nothing; choose your KPIs wisely." A business leadership article.
Memory hook
Keep People Informed. KPIs keep the whole team informed about what matters most. The key to the goal.
When not to use
Don't use KPI for minor tasks. If it doesn't indicate 'key' performance, it's just a metric.
Fun facts
- Some companies have 'Vanity KPIs'—numbers that look good on paper (like social media likes) but don't actually help the business grow.
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