Definition
A Key Performance Indicator (KPI) is a measurable indicator used to evaluate how effectively a process, system or organisation is achieving a defined objective.
Human Explanation
A KPI translates objectives into measurable evidence. It allows organisations to monitor progress, compare performance over time and determine whether intended results are being achieved.
Why it Matters
Well-designed KPIs support evidence-based decision-making, highlight emerging problems and measure the effectiveness of improvement initiatives.
Conceptual Boundary
A KPI is not simply any metric. A measurement becomes a KPI only when it directly reflects progress towards a defined objective.
Practical Perspective
Too many KPIs often reduce visibility instead of improving it. Organisations should measure what supports decisions, not everything that can be measured.