Key Performance Indicator (KPI)

A KPI is a number that tells you whether you're moving in the right direction toward a goal that actually matters. The key word is key — not every metric you can measure deserves to be a KPI. 

 
Think of it this way: if your goal is to grow customer satisfaction, your KPI might be your Net Promoter Score or your average resolution time. You're not tracking how many emails were sent or how many meetings were held — those are activities, not outcomes. 

 
Good KPIs have a few things in common. They're tied to a specific goal. They're measurable without needing to interpret them. They're reviewed regularly, not just at year-end. And they make someone accountable — meaning someone on the team owns the number. 

 
A common mistake: Teams sometimes drown in KPIs and end up tracking everything. If you can't recite your top three KPIs from memory, there are probably too many on your dashboard.