Which term describes quantifiable metrics a company uses to evaluate progress toward its goals?

Key performance indicators (KPIs) are defined as quantifiable metrics used by organizations to assess their progress toward achieving specific goals and objectives. These metrics provide a clear framework for measuring success and can cover various aspects of organizational performance, such as financial metrics, customer satisfaction, operational efficiency, and employee engagement.

KPIs are particularly valuable because they help to translate strategic objectives into measurable outcomes, allowing companies to monitor their performance over time. By tracking these indicators, organizations can identify trends, make data-driven decisions, and adjust their strategies as necessary to stay aligned with their goals.

Using KPIs ensures that all stakeholders understand what success looks like and fosters accountability within teams. They serve as a vital communication tool, aligning the organization’s efforts toward common objectives. This systematic approach to performance measurement is essential for continuous improvement and effective management.