KPI stands for Key Performance Indicator. It is a measurable value that demonstrates how effectively an organization or its departments are achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success in reaching targets. Common examples of KPIs include revenue growth, customer acquisition, and employee performance. By regularly monitoring KPIs, businesses can facilitate informed decision-making, identify areas for improvement, and align team efforts with organizational goals, ultimately driving performance and enhancing outcomes.