The acronym 'KPI' stands for Key Performance Indicator. KPIs are measurable values that demonstrate how effectively an organization is achieving key business objectives. Organizations use KPIs to evaluate success at reaching targets. These indicators can be financial, customer-related, operational, or other metrics that align with strategic goals. By tracking KPIs, businesses can make data-driven decisions, identify areas for improvement, and measure progress over time to ensure that they remain on the path to success.