Key Performance Indicators - KPI

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DEFINITION of 'Key Performance Indicators - KPI'

A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational goals. KPIs vary between companies and industries, depending on their priorities or performance criteria. Also referred to as "key success indicators (KSI)".

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BREAKING DOWN 'Key Performance Indicators - KPI'

A company must establish its strategic and operational goals and then choose the KPIs which best reflect those goals. For example, if a software company's goal is to have the fastest growth in its industry, its main performance indicator may be the measure of revenue growth year-on-year. A company's KPIs will be stated in its annual report. Also, KPIs will often be industry-wide standards, like "same store sales", in the retail sector.

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RELATED FAQS
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    Some of the key performance indicators (KPIs) for businesses seeking to attract new customers are focused on effectiveness ... Read Full Answer >>
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    There is no specific list of key performance indicators (KPIs) that can be universally applied to any business. The selection ... Read Full Answer >>
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    Key performance indicators (KPIs) can help evaluate employees by measuring how well they perform in meeting individual goals ... Read Full Answer >>
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