What is Key Performance Indicator?
A definition of Key Performance Indicator
“A key performance indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success in reaching targets.”

Business Glossary > What is Key Performance Indicator?
Examples of Key Performance Indicator in a Sentence:
Revenue growth rate is a key performance indicator for our company.
Our team’s success is measured using key performance indicators.
We revise key performance indicators annually to match our goals.
Why is Key Performance Indicator Important in Business?
Understanding and utilizing key performance indicators help businesses track progress and identify areas for improvement. KPIs provide clear targets, enable accountability, and facilitate timely decision-making to ensure strategic objectives are met, aligning efforts with business goals.
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Associated Terms
Here are some associated business terms and synonyms for “Key Performance Indicator”:
- KPI
- Performance Metric
- Business Indicator
Google Key Performance Indicators
Google utilizes key performance indicators such as user engagement and ad revenue to assess its business success. By consistently monitoring these KPIs, Google maintains its competitive edge and identifies opportunities for growth in the digital market.
Final Notes on Key Performance Indicator
Implementing effective key performance indicators ensures that a company remains on track to achieve strategic goals. Regularly reviewing and updating KPIs can lead to enhanced operational efficiency and competitiveness.
This has been a definition of Key Performance Indicator meaning.
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