What Does "KPI" Stand For?

"KPI" stands for Key Performance Indicators. Many professionals use KPI as a mechanism to track performance at an individual, company or industry level. These indicators are a set of quantifiable measures used to compare performance over a specific period of time.

KPIs allow companies to stay on track when it comes to reaching strategic and operational goals. The indicators must always be concrete and never vague. In order to define such specific and valuable KPIs, business professionals must have a clear understanding of the company's mission, vision and goals. Usually, a company's KPIs hold an important place in annual reports.