← DictionaryKey Performance Indicator
A metric chosen because it reflects progress against a stated objective.
The few numbers that actually matter.
What It Is
Key Performance Indicator sits on the Measurement side of the work, in the Foundations area. In practice it means this: a metric chosen because it reflects progress against a stated objective.
It is an idea you reason with rather than a deliverable you hand over, so two teams can both hold it correctly and still apply it differently. That is the version worth keeping, because it survives contact with a real project.
How It's Used
Why It Matters
Key Performance Indicator is cheap to get right early and awkward to fix late. When it is unclear, reporting becomes a matter of opinion. Clarity here removes a surprising amount of downstream argument.
Think of it as a lens. Look through it and some choices get obvious. The few numbers that actually matter.
Termshift™
How the meaning shifts depending on who is using it, and where.
Professionally, Key Performance Indicator carries the narrow meaning: a metric chosen because it reflects progress against a stated objective.
Explained to someone with no marketing background, Key Performance Indicator is the few numbers that actually matter.
The Bottom Line
Treat Key Performance Indicator as a decision, not a description. The few numbers that actually matter.