What Is Key Performance Indicators (KPI)?

To be a successful manager, you must know how to measure your business's performance. Key performance indicators (KPIs) are measurements to identify and quantify business performance. They are selected through a management framework that identifies the critical KPIs for your organization. The management framework is a set of standards or guidelines that help you determine what KPIs are essential for your company and how to use them. It can also help you decide when KPIs should be measured, how often they should be measured, and what format the data should be presented in. When used correctly, KPIs can be beneficial tools for managing a business. They can help you identify potential problems before they become too big to handle and allow you to make informed decisions about where resources should be focused to maximize profitability across all areas of your organization—including customer service, sales growth rates, employee retention rates, etcetera. A KPI is a metric that helps you measure your organization's performance. It could be anything, as long as it's essential to the business. You can think of it like this: you have a lot of different parts to your machine, and each region has its job. If one of those parts breaks, then the whole machine won't work anymore—so you need to ensure each piece is doing its job well. You could measure this by seeing how many widgets are produced per hour or daily, but that would only tell you a little about whether or not they're good widgets. So instead, you can measure how many times per hour/day each device gets dropped on the floor and needs to be fixed before being sold (or how many times per hour/day it gets sold). This way, when something goes wrong with one part of your machine, you can quickly find out which one is responsible for causing problems—and fix it before any real damage is done!