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Key performance indicator

Key performance indicator is a quantified measure selected to track progress toward a specific strategic or operational objective.

Also known asKPI

ByHoang TruongUpdated

See it move

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A dial gauge displays Revenue per rep at 88% of target, with the caption confirming the underlying figures: €37,000 actual against a €42,000 target. The needle's position relative to the full arc communicates the shortfall immediately, without requiring the reader to perform any arithmetic. A single-metric dial is the appropriate figure type when the purpose is to signal the distance to a specific target rather than to compare multiple variables.

Where it fits
SubjectManagerial AccountingCoreTopicStrategic Performance & the Balanced ScorecardCore

Check yourself

PracticeCORE

A regional sales manager proposes tracking 'number of client visits per week' as a KPI for her team. Her director argues this is a poor choice. Which objection best explains why?

Select an answer to check your understanding.