Key Performance Indicators (KPIs)

Cite this article as:"Key Performance Indicators (KPIs)," in The Business Professor, updated April 22, 2020, last accessed September 26, 2020,

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What are Key Performance Indicators (KPIs)?

Key performance indicators are metrics that demonstrate the results of a process or activity within an organizational unit. The results are used to make an assessment of performance – generally in terms of quality, efficiency, or effectiveness. Some common categories of indicator include:

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

KPIs are useful assessment tools at all levels of the organization and within any system of organizational management.

What are Key Goal Indicators (KGIs)?

Key Goal Indicators are metrics that demonstrate the progress toward or completion of organizational goals. KGIs are complements to KPIs that focus on the results of processes rather than their relation to organizational goals or how objectives are being achieved.

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