Key Performance Indicators (KPIs): Definition and Examples
Dasha Bunks
Liberty University
PSYC 775 - Teaching of Psychology
Dr. Winn
2022
Key Performance Indicators (KPIs): Definition and Examples
Most businesses and organizations set goals in order to achieve the right objectives and fulfill the needs
of its stakeholders. Those goals start at the top and trickle down to every team within the organization,
each performing unique functions to advance the business.
There are many different ways to set and measure goals. One popular way to measure an individual,
team or company’s progress toward a goal is by using key performance indicators, or KPIs, which set a
standar What are key performance indicators?
Key performance indicators (KPIs) are measurable values that determine how effectively an individual,
team or organization is achieving a business objective. Organizations use KPIs to help individuals at all
levels focus their work toward achieving a common goal. KPIs also help businesses understand whether
they’re spending utilizing their time, and budget and talent on the right strategies, tasks and tools in
order to achieve its goals.
Professionals can also set personal KPIs to gauge their individual success, guide their decision-making
efforts and improve performance over time. By tracking KPIs, both individuals and organizations can
better understand their development and evolve with the market.
Types of KPIs
KPIs can be used in nearly any part of a business. Here are the two main types that may be used to
account for the needs of the group using them:
Lagging vs.
leading KPIs
Lagging KPIs measure the current state of a business and its achievements toward a goal
after a set period of time. Leading KPIs measure and determine a business’ future state.
High vs. low
KPIs
Key performance indicators that target an entire organization’s goals are called high KPIs.
These indicators measure the company’s success as a whole. KPIs that target smaller
projects, such as departmental strategies, are called low KPIs.
d of success for a specific business objective.
