A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving keybusiness objectives. Organizations use KPIs to evaluate their success at reaching targets. Selecting the right KPIs will ultimately depend on your industry and which part of the business you are looking to track.
Clarifying your business objectives and business strategy are the first two steps in defining meaningful KPIs. Business objectives state what you want to accomplish and by when. They must be time bound to set the gear ratios for every other metric and how they mesh together.