KPI: what it is and what it means

A KPI (Key Performance Indicator) is the single quantitative indicator that measures the performance of a specific area against a goal set in advance. The KPI is not the system: it is the measure selected by the system. Without a system that justifies the choice, a KPI is a number without a map. The distinction is operational: piling up KPIs without a system that justifies their presence produces crowded dashboards that do not guide decisions.

Distinctive: single quantitative indicator
Distinctive: without a system that justifies the choice
Essential: measures the performance of a specific area
Essential: against a goal set in advance
Constant: is a number without a map

Glossary

KPI

The single quantitative indicator that measures the performance of an area against a goal set in advance; a component of the system, not the system itself.