KPI stands for Key Performance Indicator, which is a measurable value that demonstrates how effectively a company or individual is achieving key business objectives. KPIs provide targets for teams to shoot for, milestones to gauge progress, and insights that help people across the organization make better decisions. They are designed to align with business goals and targets, while metrics evaluate the performance of particular processes. KPIs are an important tool in measuring progress, but they are more likely to be acted upon if someone is held responsible for tracking and reporting on them. A good KPI is measurable, specific, achievable, relevant, and time-bound. KPIs are used in various areas of business, including finance, HR, marketing, and sales. Every business unit has unique KPIs that help them track progress, and many organizations use KPI dashboards to help them visualize, review, and analyze their performance metrics all in one place.