Glossary · Strategy & delivery
KPI
A measurable indicator that shows whether you are reaching a goal.
A KPI, short for Key Performance Indicator, is a measurable figure that tells you whether you are on track for a goal. Instead of going by gut feeling, you look at a concrete number that answers the same question every week or month: are we moving forward or not?
A good KPI is tied to a goal that really matters. Measure too many things at once and the signal drowns in the noise. So choose a handful of indicators that together give an honest picture, and leave the rest aside.
For an SME, the pitfall is that KPIs become a goal in themselves. A figure should help you decide, not just fill a report. If an indicator never leads to action, you are better off dropping it.
