What is KPI mean? Explained
What is kpi mean
Pronunciation
/wɑt ɪs kpi miːn/
Part of Speech
Noun phrase
Definition
A Key Performance Indicator (KPI) is a measurable value that indicates how effectively an organization is achieving its objectives.
Examples
- The company’s KPI for sales growth was exceeded last quarter.
- The manager was tasked with developing KPIs for the marketing team.
Synonyms
- Performance metric
- Success indicator
Antonyms
- Failure indicator
- Inefficiency metric
Additional Information
KPIs are often used in business and management to evaluate performance and make data-driven decisions. They can be financial or non-financial, and are typically quantifiable. Effective KPIs should be specific, measurable, achievable, relevant, and time-bound (SMART). It is essential to choose KPIs that align with the organization’s goals and objectives.
KPIs can be used to measure various aspects of an organization, such as sales, customer satisfaction, productivity, and more. They provide insights into areas that need improvement and help managers allocate resources effectively.
Etymology
The term “Key Performance Indicator” originated in the 1960s as a way to measure organizational performance. It has since become a widely used concept in business and management.
Usage Notes
KPIs are commonly used in business reports, presentations, and meetings. They are often displayed in dashboards, graphs, or charts to provide a visual representation of the data.
Cultural References
KPIs have been referenced in popular culture, such as in TV shows and movies that feature business or management settings.
Idiomatic Expressions or Phrases
- “Meet the KPIs”
- “KPI-driven decision-making”
Related Words or Phrases
- Performance metric
- Success indicator
- Business intelligence
Collocations
- KPI dashboard
- KPI report
- KPI analysis
Frequency of Use
KPIs are frequently used in business and management settings, making them a common term in modern language.