Key Performance Indicator (KPI)
A KPI should have an owner, definition, calculation, target, time horizon, and decision it informs. Not every metric is a KPI: supporting metrics help explain performance, while KPIs represent outcomes that matter. Teams should limit the number of KPIs, document trade-offs and guardrails, and revisit them when the strategy or product changes.
What is Key Performance Indicator (KPI)?
A Key Performance Indicator (KPI) is a measurable value used to evaluate progress toward a specific strategic or operational objective.
Why it matters
A KPI should have an owner, definition, calculation, target, time horizon, and decision it informs. Not every metric is a KPI: supporting metrics help explain performance, while KPIs represent outcomes that matter. Teams should limit the number of KPIs, document trade-offs and guardrails, and revisit them when the strategy or product changes.
Example
A product team chooses retained weekly active teams as a KPI because it reflects recurring customer value better than total registrations.