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WHAT IS KPI?



A key performance indicator (KPI) is a metric used to measure the performance of an organization or specific business processes or goals. KPIs are used to evaluate the effectiveness of an organization's strategies and to identify areas for improvement.


KPIs are typically selected based on the specific goals and objectives of an organization, and can vary widely depending on the industry, business model, and target market. Examples of common KPIs include:

  • Revenue growth

  • Customer satisfaction

  • Employee retention

  • Cost reduction

  • Time to market

  • Quality metrics (such as defect rate or error rate)

KPIs are typically measured over a specific time period, such as monthly, quarterly, or annually, and can be used to track progress and identify trends. They are often used in conjunction with other metrics, such as benchmarks and targets, to provide a more complete picture of an organization's performance.


Effective KPI management involves selecting the right KPIs, setting appropriate targets, and tracking progress on an ongoing basis. This can help organizations make informed decisions, allocate resources effectively, and achieve their goals.

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