What is a Key Performance Indicator? 

A KPI is a measure of performance used to measure progress towards a target / a goal / a desired state. 

A KPI is different from a  metric. A metric is anything that can be measured: 

• Height 
• Length 
• Weight 
• The number Sales orders 
• The Value of fixed assets 

A metric becomes a KPI when you link it to a goal and have a clearly defined target to pursue and evaluate against. It also needs to be assigned to someone. 

Tip: 

Ensure that your KPIs are aligned to goals and have clearly define targets and someone is accountable.