What does the acronym KPI stand for in performance measurement?

The acronym KPI stands for Key Performance Indicator. This term is widely used in business and organizational contexts to refer to measurable values that demonstrate how effectively a company or organization is achieving key business objectives. KPIs are crucial for assessing performance and guiding decision-making by providing a clear picture of progress toward specific goals.

Key Performance Indicators can be financial indicators like revenue growth, or customer-focused metrics like customer satisfaction scores. They help organizations focus on the most important aspects of performance, driving improvements and strategies in areas that matter most. Each KPI should be well-defined, quantifiable, and aligned with the overall goals of the organization, allowing for objective evaluation and comparison over time.

While the other options present plausible-sounding alternatives, they do not reflect the established meaning of KPI in the context of performance measurement.