KPI
Business & Finance abbreviation · Management & Strategy
| Stands for | Key performance indicator |
|---|---|
| Categories | Business & Finance |
KPI stands for Key performance indicator, a management & strategy abbreviation.
A quantifiable measure that tracks how well a company, team or individual is meeting a stated objective, such as monthly revenue, customer churn, on-time delivery or average handling time. Organizations usually choose a small set of KPIs per function and review them on dashboards weekly, monthly or quarterly.
Example: Our main KPI for the support team this quarter is first-contact resolution, currently at 72 percent against a target of 80.
Usage notes
Pronounced as letters, K-P-I; the plural is KPIs, with no apostrophe. A KPI differs from an ordinary metric in that it is tied directly to a strategic goal and has a target. Management writers distinguish lagging KPIs (results already achieved, such as profit) from leading KPIs (predictors, such as the sales pipeline). KPIs are often paired with OKRs, where key results are typically expressed as KPI targets.
Related abbreviations
More management & strategy abbreviations
- FMEA – Failure mode and effects analysis
- GRC – Governance, risk and compliance
- GTM – Go-to-market
- HiPPO – Highest paid person's opinion
- ITT – Invitation to tender
- JV – Joint venture
- KRA – Key result area
- KRI – Key risk indicator
- KT – Knowledge transfer
- LOB – Line of business
- MBO – Management by objectives
- MBWA – Management by walking around