SBP017: What is a Key Performance Indicator (KPI)?



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What is a Key Performance Indicator?

A KPI is a measure of performance used to measure Progress towards a target / a goal / a desired state.


A KPI is different from a  metric. A metric is anything that can be measured:

  • Height
  • Length
  • Weight
  • The number Sales orders
  • The Value of fixed assets


A metric becomes a KPI when you link it to a goal and have a clearly defined target to pursue and evaluate against. It also needs to be assigned to someone.


Ensure that your KPIs are aligned to goals and have clearly define targets and someone is accountable.