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What are KPI (Key Performance Indicators)
Key Performance Indicators are performance indicators/metrics associated with the process, service, organizational unit or the entire organization. KPIs reflect the desired performance (quality, efficiency or economy).

Key Performance Indicators, the abbreviation KPI is used. It is a term that refers to the performance indicators / metrics associated with the process, service, organizational unit or the entire organization. KPIs reflect the desired performance (quality, efficiency or economy).

Use of the KPI in practice: KPIs are used at all levels of organizational management, particularly in strategic management, management by objectives and service management (SOM).

  • Economic indicators
  • Quality indicators
  • Process performance indicators
  • IT services indicators
  • Supply indicators
  • System of interrelated indicators ( BSC)

KPI as well as objectives should comply with SMART conditions.

Note: In the narrow sense the KPI refer only to the processes and are seen as a complement to KGI (Key Goal Indicators). While the KPI measures the performance of the process, the KGI measures how the objectives are being achieved.

Related terms and methods:

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Last update: 10.09.2015

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