What's a key performance indicator?

The result of a business measure, for example product sales or operational costs, evaluated against a target for that measure. You use KPIs to assess the performance of the strategic objectives and initiatives that are part of your organizational strategy.

When you define KPIs you should ensure they have these characteristics:

• Have measurable objectives that may vary over time.

• Can be evaluated using targets to determine performance status.

• Can be compared over time for trending purposes.