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What is a Key Performance Indicator?

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A key performance indicator, or KPI, is a business measurement that is designed to focus on strategic goals.
The idea behind KPIs, is that people tend to focus on what you can measure. By carefully designing what you measure you improve your chances of meeting a strategic goal. For example, if a bank has a strategy to better manage risk, a well designed risk measurement can be considered a key performance indicator.
A well designed KPI is typically an easy to understand non-financial indicator that is used to define the goals and incentives of a team or individual. The design of KPI involves an analysis of how it will likely impact the performance of an organization including any downsides the measurement may produce. For example, if you focus on a quality related KPI, costs may go up or production may slow down.
Overview: Key Performance Indicator
A quantitative indicator that is designed to measure a goal in a way that motivates employees and provides visibility to management.
Setting performance goals and measuring results.
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Business Analysis

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Audience Analysis
Behavioral Requirements
Best In Class
Black Box
Brand Analysis
Budget Planning
Business Analysis
Business Architecture
Business Attributes
Business Case
Business Conditions
Business Models
Business Needs
Business Needs Analysis
Business Plan
Business Requirements
Business Rules
Business Strategy
Business Swot
Business Theory
Capacity Planning
Choice Architecture
Competitive Intelligence
Context Of Use
Cost Benefit Analysis
Success Factors
Data Analysis
Data Dredging
Data Mining
Decision Analysis
External SWOT
Feasibility Analysis
Fishbone Diagram
Gap Analysis
Ishikawa Diagrams
Management Accounting
Market Research
Needs Analysis
Net Present Value
Operations Analysis
Organizing Principle
Pain Points
Performance Analysis
Problem Analysis
Productivity Analysis
Project Charter
Proof Of Concept
Qualitative Analysis
Requirements Gathering
Scenario Planning
Situation Analysis
Statement Of Work
Statistical Analysis
Story Points
Strategic Drivers
SWOT Analysis
Technology Analysis
Terms Of Reference
Total Cost Of Ownership
Use Case
User Stories
Voice Of The Customer
What-if Analysis
Workflow Analysis
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