What are key performance indicators (KPIs) used for?

Key performance indicators (KPIs) are essential metrics used by organizations to assess progress towards their strategic objectives. They provide a quantifiable measure that can reflect the effectiveness and efficiency of various business activities. By using KPIs, businesses can determine whether they are moving towards their goals, allowing for informed decision-making and timely adjustments as needed.

The focus of KPIs is on measuring effectiveness in achieving overall business objectives, which encompasses various aspects such as financial performance, operational efficiency, customer satisfaction, and employee performance. While other options refer to specific applications or functions, they do not capture the broad purpose of KPIs in evaluating comprehensive performance towards strategic goals. Instead, KPIs serve as a vital tool in monitoring and driving the organization's success across multiple dimensions, making their role pivotal in effective management.