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Tech Glossary

KPI (Key Performance Indicator)

Key Performance Indicators (KPIs) are measurable values that organizations use to evaluate their success in achieving specific business objectives. KPIs serve as critical benchmarks that help businesses monitor their progress, make informed decisions, and identify areas for improvement. They can be applied at various levels within an organization, from high-level strategic goals to more granular operational targets. Common examples of KPIs include sales growth, customer satisfaction scores, employee productivity metrics, and financial performance indicators like profit margins or return on investment (ROI).

KPIs are typically tailored to the specific needs and goals of an organization, ensuring that they provide relevant and actionable insights. Effective KPIs are clear, measurable, and aligned with the company's strategic objectives, allowing teams to focus on what matters most. By regularly tracking and analyzing KPIs, organizations can identify trends, assess the effectiveness of their strategies, and make data-driven adjustments to optimize performance. In a rapidly changing business environment, KPIs play a crucial role in helping companies stay competitive and achieve sustainable growth.

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