Key performance indicators (KPIs) are vital in strategic planning as they provide measurable values that demonstrate how effectively an organization is achieving its objectives. By utilizing KPIs, businesses can identify areas of improvement and measure success against set targets. They offer insights into performance trends, helping leaders to make informed decisions. Additionally, KPIs align team efforts towards common goals and enhance accountability across the organization. Overall, KPIs serve as a critical tool to gauge progress and implement necessary adjustments in strategy.