KPI stands for Key Performance Indicators. KPIs are metrics that you measure in order to show you how you are doing against a desired level of performance and outcomes. The only real difference between a KPI and a metric is the word ‘key’ implies these are ‘really’ important.
KPIs are not just financial, as these are typically lagging indicators. KPI planning needs to consider what the drivers of these indicators are across the organization, and in doing so, achieving clarity on what the faster moving leading indicators are.
Key Performance Indicators are used in numerous ways by most businesses and can be used in an agile working environment. Their brilliance and success comes from their simplicity.