What does KPI stand for in performance analysis?

KPI stands for Key Performance Indicator. This term is widely used in performance analysis to measure and evaluate the success of an organization, team, or individual in achieving key objectives. Key Performance Indicators are specific, quantifiable metrics that reflect the critical success factors of an organization. By defining KPIs, businesses can track progress, identify areas for improvement, and make informed decisions based on performance data.

KPIs serve as a valuable tool in strategic planning as they help organizations set defined targets and measure outcomes against those targets. This allows for a clear understanding of how well various strategies are performing and how effectively resources are being utilized. Given the focus on performance measurement, the term "Key Performance Indicator" accurately reflects the purpose and function of KPIs in the realm of performance analysis.