Key Performance Indicators (KPI)

Skill level: Basic, intermediate


Key performance indicators (KPI), help an organization measure progress toward specific goals. They must be quantifiable measurements, agreed to by management, that reflect the critical success factors of an organization. They are unique and differ depending on the organization.

The KPI you select must be in line with organizational goals, key to organizational success, and quantifiable (measurable). Generally, KPI are long-term considerations and do not change often. The setting for a particular KPI may change as the organization’s goals change, or as the organization gets closer to achieving a goal.


  • Track performance against goals and objectives
  • Easily adaptable to any situation
  • Vital component of organization performance measurement

How to Use

  • Step 1.  Brainstorm and list the key performance indicators needed.
  • Step 2.  Stratify/organize measures with common objectives.
  • Step 3.  Establish where and when they will be used (monthly scorecard, weekly report).
  • Step 4.  Define how you are going to measure them.
  • Step 5.  Implement, measure, and adjust as needed.

Relevant Definitions

Stratification (stratify): An action of regrouping concepts, ideas, or proposals that have similar meanings or objectives.


  • Sales: percentage of income from returning customers
  • Call center: waiting time (minutes) before call is answered
  • Home care center: number of referred new customers per year


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