What Are KPIs (Key Performance Indicators)? 30 Examples for Finance, HR, Process, etc.

If you're leading a team or steering a company, you know it's not always smooth sailing. How do you ensure you're on course toward your goals? That's where Key Performance Indicators (KPIs) come into play. They're not just numbers on a spreadsheet; they're your navigational tools, providing crucial insights into your organization's performance.

Think of KPIs as the compass guiding your ship. Choose the right ones, and you'll stay on course towards your desired destination. But choose poorly, and you might find yourself adrift, measuring things that don't truly matter for your success.

In this guide, we'll demystify KPIs, provide a step-by-step approach to selecting and tracking them, and offer over 30 practical examples to inspire your own KPI strategy.

Before we dive into the specifics of KPIs, let me introduce you to ClearPoint Strategy, the software that can revolutionize your performance management process. ClearPoint is an intuitive strategy planning, management, and execution platform that can transform the way you manage and monitor KPIs. With ClearPoint, you can:

• Streamline Data Management: Collect, analyze, and report on data seamlessly.
• Create Customizable Dashboards: Tailor KPI dashboards to different departments and executive teams for a clear view of performance.
• Foster Collaboration: Share consistent and accurate KPI reports across your organization to improve communication and alignment.

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What Are Key Performance Indicators (KPIs)?

One of the questions we are asked regularly is, "What is a KPI?"

A Key Performance Indicator (KPI) is a critical measure used to track and assess your organization's progress toward achieving its strategic goals.

Let's break it down:

• Indicator: Any raw measurement within your business. Think total hours worked, website visitors, etc.
• Performance Indicator: A measurement tied to your organization's performance, such as production output, customer satisfaction scores, or marketing campaign results.
• Key Performance Indicator (KPI): The cream of the crop. These are the most critical measurements, directly linked to your strategic goals and overall success.

In our experience, the most effective leadership teams track fewer than 25 measures that cut across the organization’s four perspectives: financial, customer, process, and people.

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30 Key Performance Indicators Examples by Department & Industry

We've broken down our list of KPIs into the four categories of the Balanced Scorecard: Financial, Customer, Process and People. Make sure you select a few from each category so that your strategy is well-balanced across the organization.

Note that the right KPIs for you might not be the right KPIs for another organization. Make sure you’ve researched as many key performance indicators as you can to determine which ones are appropriate for your industry. 

From there, determine which KPI targets will help you further understand and meet your goals, and then integrate them throughout your department. KPIs should match your strategy, not just your industry.

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Here's a diverse selection of KPI examples to get you thinking:

Finance KPIs

1. Profit Margins:

• ‍Gross Profit Margin: Measures the percentage of revenue that exceeds the cost of goods sold. Formula: (Revenue - Cost of Goods Sold) / Revenue.‍
• Net Profit Margin: Measures overall profitability after all expenses are accounted for. Formula: Net Profit / Revenue.

2. Cost Efficiency:

• ‍Total Cost Management: Tracks total expenses and identifies areas to reduce and manage costs effectively.

3. Revenue vs. Target:

• ‍Revenue Target Comparison: Compares actual revenue to projected revenue. Analyzing discrepancies helps assess departmental performance.

4. Cost of Goods Sold (COGS):

• ‍Production Cost Analysis: Calculates total production costs to determine product markup and profit margins. Formula: Total Production Costs / Number of Units Sold.

5. Days Sales Outstanding (DSO):

• ‍Accounts Receivable Efficiency: Measures the average number of days to collect payment after a sale. Formula: (Accounts Receivable / Total Credit Sales) x Number of Days.

6. Sales by Region:

• ‍Regional Sales Performance: Analyzes sales performance across different regions to provide feedback and improve underperforming areas.

7. Expenses vs. Budget:

• ‍Budget Adherence: Compares actual expenses to budgeted amounts to understand deviations and improve future budgeting.

8. Cash Flow from Financing Activities:

• ‍Financial Strength: Demonstrates cash flow from financing activities. Formula: (Cash Received from Issuing Stock or Debt) - (Cash Paid as Dividends and Debt Reacquisition).

9. Average Annual Expenses to Serve One Customer:

• ‍Customer Service Cost: Calculates the average annual cost to serve one customer. Formula: Total Expenses / Total Customers.

10. EBITDA:

• ‍Operational Profitability: Measures earnings before interest, taxes, depreciation, and amortization. Formula: Revenue - Expenses (Excluding Interest, Tax, Depreciation & Amortization).

11. Customer Lifetime Value (CLV) / Customer Acquisition Cost (CAC): ‍

• ‍Profitability Ratio: Assesses the ratio of customer lifetime value to acquisition cost. Formula: Net Expected Lifetime Profit from Customer / Cost to Acquire Customer.

Claim your FREE eBook on 68 effective financial KPIs you should use for better strategic insights

Customer KPIs

12. Customer Lifetime Value (CLV):

• ‍Long-term Customer Value: Evaluates the value derived from long-term customer relationships.

13. Customer Acquisition Cost (CAC):

• Cost Efficiency of Acquiring Customers: Calculates the cost of acquiring new customers. Formula: Total Acquisition Costs / Number of New Customers.

14. Customer Satisfaction & Retention:

• Customer Happiness and Loyalty: Measures customer satisfaction and retention rates using surveys and repeat purchase percentages.

15. Net Promoter Score (NPS):

• Customer Loyalty Indicator: Assesses the likelihood of customers recommending the organization. Conduct quarterly surveys to track changes.

16. Number of Customers:

• Customer Base Analysis: Tracks the number of customers gained and lost to understand customer needs better.

17. Customer Churn Rate:

• Customer Retention: Measures the percentage of customers lost over a specific period. Formula: Number of Customers Lost / Number of Customers at the Start of the Period.

18. Contact Volume by Channel:

• Customer Support Preferences: Monitors the number of support requests by phone and email to understand customer preferences.

19. Percentage of Satisfied Customers:

• Customer Satisfaction: Measures the percentage of customers who are very or extremely satisfied. Formula: (Number of Very/Extremely Satisfied Customers / Total Survey Respondents) x 100.

20. New vs. Repeat Site Visits:

• Website Traffic Insights: Differentiates between new and repeat visitors to generate insights. Formula: (Website Visits by New Visitors / Total Website Visits) x 100.

Claim your FREE eBook on 53 important customer KPIs for enhanced customer satisfaction

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Process KPIs

21. Customer Support Tickets:some text

• ‍Support Efficiency: Tracks the number of new tickets, resolved tickets, and resolution times.

22. Percentage of Product Defects:some text

• ‍Product Quality: Measures the percentage of defective products. Formula: (Number of Defective Units / Total Units Produced) x 100.

23. Efficiency Measure:some text

• ‍Operational Efficiency: Analyzes efficiency based on industry-specific metrics, such as units produced per hour in manufacturing.

Human Resources KPIs

24. Employee Turnover Rate (ETR):

• Employee Retention: Measures the rate at which employees leave the company. Formula: (Number of Departing Employees / Average Number of Employees) x 100.

25. Response to Open Positions:

• Recruitment Effectiveness: Measures the percentage of qualified applicants for open positions.

26. Employee Satisfaction:

• Workplace Happiness: Assesses employee satisfaction through surveys and other metrics.

27. Retirement Rate:

• Strategic Workforce Planning: Calculates the percentage of employees retiring. Formula: (Number of Retirees / Total Headcount) x 100.

28. Knowledge Achieved with Training:

• Training Effectiveness: Evaluates training effectiveness through exam pass rates and average scores.

29. Internal Promotions vs. External Hires:

• Succession Planning: Measures the ratio of internal promotions to external hires.

30. Salary Competitiveness Ratio (SCR):

• Compensation Competitiveness: Compares company salary averages to industry standards. Formula: Company Average Salary / Competitor Average Salary.

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Industry-Specific Key Performance Indicators Examples

Local Governments

Public Safety KPIs:

• Crime Rate: Measures the number of crimes reported per 1,000 or 100,000 residents.
• Emergency Response Time: Average time taken for emergency services (police, fire, ambulance) to respond to incidents.
• Fire Incident Rate: Number of fire incidents per 1,000 or 100,000 residents.
• Traffic Accident Rate: Number of traffic accidents per 1,000 or 100,000 residents.

Financial KPIs:

• Budget Variance: Difference between the budgeted amount and the actual amount spent.
• Revenue Collection Rate: Percentage of revenue collected compared to the amount billed.
• Debt Ratio: Ratio of total debt to total revenue.
• Grant Funding Utilization: Percentage of available grant funds that have been utilized.

Public Health KPIs:

• Immunization Rates: Percentage of the population that is immunized against specific diseases.
• Hospital Readmission Rates: Percentage of patients readmitted to hospitals within a certain period.
• Air Quality Index: Measurement of air pollution levels.
• Access to Healthcare: Percentage of the population with access to healthcare services.

Infrastructure and Public Works KPIs:

• Road Condition Index: Percentage of roads in good, fair, or poor condition.
• Water Quality Compliance: Percentage of water samples meeting safety standards.
• Waste Management Efficiency: Amount of waste recycled or properly disposed of as a percentage of total waste collected.
• Infrastructure Project Completion Rate: Percentage of infrastructure projects completed on time and within budget.

Community and Social Services KPIs:

• Affordable Housing Availability: Number of affordable housing units available compared to the demand.
• Unemployment Rate: Percentage of the labor force that is unemployed.
• Social Service Program Participation: Number of residents participating in social service programs.
• Library Usage: Number of library visits or number of items borrowed.

Environmental Sustainability KPIs:

• Energy Consumption: Total energy consumption by government facilities.
• Green Space Availability: Percentage of land designated as parks or green spaces.
• Renewable Energy Usage: Percentage of energy used that comes from renewable sources.
• Carbon Footprint: Total greenhouse gas emissions produced by government operations.

Education KPIs:

• Graduation Rates: Percentage of students who graduate from high school.
• Student-Teacher Ratio: Average number of students per teacher.
• Literacy Rates: Percentage of the population that is literate.
• School Attendance Rates: Percentage of students attending school regularly.

Download your FREE eBook on 142 important KPIs for local governments here

Healthcare Industry

Clinical Performance KPIs:

• Patient Mortality Rate: Percentage of patients who die during their hospital stay or within a certain period after discharge.
• Hospital Readmission Rate: Percentage of patients readmitted to the hospital within 30 days of discharge.
• Infection Rates: Incidence of hospital-acquired infections (HAIs) such as MRSA or C. difficile.
• Surgical Complication Rate: Percentage of patients experiencing complications following surgical procedures.

Patient Experience KPIs:

• Patient Satisfaction Score: Average score from patient satisfaction surveys, often measured using tools like HCAHPS (Hospital Consumer Assessment of Healthcare Providers and Systems).
• Average Length of Stay (ALOS): Average number of days a patient stays in the hospital.
• Patient Wait Times: Average time patients spend waiting to see a healthcare provider.
• Discharge Against Medical Advice (AMA) Rate: Percentage of patients who leave the hospital against medical advice.

Operational Efficiency KPIs:

• Bed Occupancy Rate: Percentage of hospital beds occupied at a given time.
• Staff-to-Patient Ratio: Number of healthcare staff members per patient.
• Average Treatment Cost: Average cost incurred for treating patients.
• Emergency Department (ED) Throughput: Average time from patient arrival to departure in the emergency department.

Financial Performance KPIs:

• Revenue Cycle Metrics: Measures such as days in accounts receivable (A/R), net collection rate, and claim denial rate.
• Operating Margin: Ratio of operating income to total revenue.
• Cost per Patient: Average cost incurred per patient visit or treatment.
• Charity Care and Bad Debt: Amount of care provided for which payment is not expected.

Quality of Care KPIs:

• Medication Error Rate: Number of medication errors per 1,000 patient days.
• Treatment Adherence Rate: Percentage of patients following prescribed treatment plans.
• Preventive Care Measures: Rates of preventive measures such as vaccinations and screenings.
• Care Plan Compliance: Percentage of patients with completed and adhered-to care plans.

Human Resources KPIs:

• Staff Turnover Rate: Percentage of staff leaving the organization within a specific period.
• Staff Training and Development: Number of training hours per employee.
• Employee Satisfaction Score: Average score from employee satisfaction surveys.
• Overtime Hours: Total overtime hours worked by staff members.

Regulatory Compliance KPIs:

• Accreditation Status: Compliance with standards set by accrediting bodies such as The Joint Commission.
• Incident Reporting Rate: Frequency of reported incidents, including adverse events and near misses.
• Compliance Audit Results: Scores or findings from internal and external compliance audits.
• Patient Data Security Incidents: Number of data breaches or security incidents involving patient information.

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Why Is It So Critical to Select The Right KPIs?

The right KPIs are incredibly powerful. They not only measure progress but also motivate your team by highlighting areas where improvement is needed. Imagine a sales team with a clear KPI tied to revenue growth – that's a recipe for focused action and impressive results.

Conversely, choosing the wrong KPIs can lead you astray. If a manufacturing company only focuses on production volume while neglecting quality, they might end up with a warehouse full of defective products and unhappy customers.

There are two rules for selecting the right KPIs (key performance indicators):

1. KISS: You’ve likely heard the acronym, “Keep it simple, stupid.” This phrase rings true for KPIs. Make it as easy to understand as possible, so your employees will be clear about what they need to do.
2. SMART KPIs: SMART stands for specific, measurable, attainable, realistic, and timely. Is your KPI all of these things? Read our blog on How To Get SMART With Your KPI Tracking for specifics on how to improve in each area.

How Can You Create a Culture of KPI Monitoring and Improvement?

To create a culture of KPI monitoring and improvement, it is essential to educate your team on the significance and use of KPIs. Ensure they understand that KPIs are tools for enhancement rather than enforcement. Additionally, establish a performance management system that is consistent, transparent, and straightforward.

Introducing KPIs into your work environment may initially present some challenges. Not everyone may fully understand what KPIs are and how they are used. Organize educational sessions to explain the concept of KPIs and highlight their importance for the organization's future.

Emphasize that KPIs are not enforcement tools designed to control behavior. For example, a customer service representative might see a KPI related to average handle time and assume that meeting the target is solely their responsibility, leading to anxiety about negative consequences if they fall short. It is crucial to correct this impression to prevent counterproductive behaviors.

Selecting the right KPIs is just the beginning; fostering a culture of monitoring, reporting, and continuous improvement is where the real work lies. To help your team embrace KPIs and motivate them to drive change, implement a performance management system that is:

• Consistent: Ensure that KPI tracking and reporting are done regularly and uniformly across the organization.
• Transparent: Make KPI data accessible to everyone, fostering an environment of openness and trust.
• Simple: Keep the system easy to understand and use, so that employees can focus on their performance rather than navigating complex processes.

By taking these steps, you can create a supportive culture where KPIs are viewed as valuable tools for personal and organizational growth.

You may be interested in: What Is A KPI Report, & How Do I Create One?

KPI Selection Mistakes You Should Watch Out For

There are two common missteps made during the selection process:

• Relying on outdated metrics: What worked in the past might not be relevant today. Business landscapes change, so make sure your KPIs evolve with them.
• Prioritizing easy over impactful: Tracking simple metrics might be convenient, but are they truly driving your strategic goals? Sometimes, the most valuable KPIs require a bit more effort to measure.

How to Build Your KPI Strategy 

Ready to craft your KPI strategy?

Here's your roadmap:

• Align with Objectives: Start with your overarching goals. Every KPI should contribute directly to achieving those objectives.
• Apply SMART Criteria: Ensure your KPIs are Specific, Measurable, Achievable, Relevant, and Time-Bound. Vague or immeasurable KPIs won't help you make informed decisions.
• Assign Ownership: Make individuals accountable for each KPI. This fosters ownership and ensures focused attention on driving improvement.
• Monitor and Report: Regularly review your KPIs using dashboards, reports, or dedicated software like ClearPoint. This helps you identify trends, make data-driven decisions, and communicate progress to stakeholders.

How to Choose & Track KPIs

It is frequently said that “What gets measured gets done,” but how does the measuring itself get done? Below are the important steps to consider in effectively tracking KPIs as a part of your performance management framework:

Step 1: Select 1-2 Key Measures for Each Objective

While it's tempting to track every aspect of your operations, it's neither practical nor efficient. Focus on one or two critical metrics per objective that directly contribute to achieving your goals.

For example, if your objective is to improve employee training and development programs, measuring the percentage of trained employees or training hours might not be as effective as tracking the reduction in errors post-training, which directly correlates with skill development.

Tip for Selecting Metrics:

• Lagging Indicators (Outcome KPIs): If you're unsure which activities drive results, measure the outcome. For instance, track 'sales' to see the impact of various promotional activities.
• Leading Indicators (Driver KPIs): If you know what drives results, measure the activity. For instance, track 'order processing time' if quick order handling increases sales.

Step 2: Ensure Your KPIs Meet Key Criteria

Effective KPIs should have specific characteristics. Consider these questions for each KPI:

• Can it be easily quantified?
• Can we influence change using this KPI?
• Does it align with our objectives and overall strategy?
• Is it simple to define and understand?
• Can it be measured accurately and timely?
• Does it cover various perspectives (Customer, Financial, Internal Processes, Learning and Growth)?
• Will it remain relevant in the future?

If the answer to many of these questions is "no," consider revising or replacing the KPI.

Step 3: Assign Responsibility for Each KPI

KPIs are more actionable when specific individuals are accountable for tracking and reporting them. This responsibility often motivates the person to ensure the KPI's success.

• Data Collection: An analyst may collect the data.
• Reporting and Analysis: A business leader should analyze and contextualize the data, explaining performance and driving improvements.

Step 4: Monitor and Report on the KPIs

Regularly review KPI performance—monthly, quarterly, or on another schedule. This helps identify periods of underperformance or overperformance and understand the contributing factors.

Consistent reporting to all relevant parties is crucial since many measures and goals are interconnected. Instead of using spreadsheets, which can lead to version control issues and errors, consider using performance management software like ClearPoint Strategy. Such tools allow you to create customizable KPI dashboards for different audiences, ensuring clarity and coherence across the organization.

About KPI Dashboards Software

Effective KPI tracking involves more than just choosing the right metrics. KPI dashboards provide visual summaries of your data, making it easier to spot trends and communicate progress. Specialized software, such as ClearPoint, can streamline data collection, analysis, and reporting, saving you valuable time and resources.

However, be prepared for challenges along the way:

• Data Quality: Inaccurate data can lead to faulty conclusions. Ensure your data sources are reliable and up-to-date.
• Lack of Engagement: KPIs are only valuable if everyone understands and supports them. Communicate the purpose and benefits of tracking these metrics to foster buy-in.
• Information Overload: Too much data can be overwhelming. Focus on the most critical KPIs that directly impact your goals.

Implementing Performance Management Software

Many organizations initially try to use spreadsheets to track KPIs, but this method often leads to issues such as version control conflicts and calculation errors. A better and simpler alternative is to use performance management software.

Tools like ClearPoint Strategy offer several advantages:

• Customizable Dashboards: Create different dashboards for various departments and executive teams, providing tailored views of KPI performance.
• Real-Time Data: Ensure that all team members have access to the most up-to-date information, reducing the risk of working with outdated data.
• Improved Collaboration: Facilitate better communication and collaboration across departments by sharing consistent and accurate KPI reports.

By implementing performance management software, you can streamline the process of tracking and reporting KPIs, ultimately driving better performance and achieving your organizational goals.

None of this is to say you can’t use spreadsheets to view your KPI data, but with ClearPoint, you save time and improve the information available for decision-making.

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The Future of KPIs: AI-Powered Insights

The landscape of KPI tracking is evolving rapidly. Artificial intelligence (AI) is emerging as a powerful tool for identifying new KPIs and predicting future performance trends. This exciting development promises even deeper insights and greater strategic advantage for businesses that embrace it.

Ready to Elevate Your Performance?

If you're serious about optimizing your business, consider leveraging powerful tools like ClearPoint to transform your KPI tracking into a well-oiled machine.

With streamlined data management, intuitive dashboards, and goal alignment features, ClearPoint empowers you to make informed decisions and drive your organization towards success.

Unlock Your Organization's Potential with ClearPoint Strategy Software

Ready to take your organization's performance to the next level? ClearPoint Strategy is your partner in not just tracking, but truly achieving your strategic goals. Our intuitive strategy planning, management, and execution platform transforms the way you manage and monitor Key Performance Indicators (KPIs), ensuring that every metric you track is aligned with your strategic objectives.

Book your free demo today and see how ClearPoint Strategy can empower your team to make data-driven decisions, foster a culture of continuous improvement, and drive your organization towards its strategic goals with clarity and confidence.

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Your Questions About KPIs Answered:

What are key performance indicators?‍

Key performance indicators are measures used to evaluate the success of an organization. KPIs can be quantitative and qualitative in nature. Quantitative KPIs include metrics such as sales revenue per employee, number of customers served by each call center agent, or revenue. Qualitative KPIs, on the other hand, may include customer satisfaction scores, quality rantings, or product reliability rates.

What is a SMART KPI?‍

Organizations often use SMART criteria to create a good KPI. A SMART KPI is: Specific, Measurable, attainable, Relevant, and Time-bound. To know if your KPI is SMART, ask yourself the following 3 questions.

Why are key performance indicators so important?‍

KPIs are important because if you don't know how you're progressing in certain areas, you don't actually know where you're going as an organization. You won't have insights into if you're making progress towards your strategic goals, or if you're headed in a direction you want. KPIs act as a 'pulse check' of your strategic plan.

What should I include in a KPI report?‍

What you include in your report depends heavily on your audience. There are, however, a few pieces of information every KPI report should include. It's important to show the linking goals of your KPIs, the KPI measures data and calculations, and visuals showcasing the data in an easy-to-digest format.

How do I choose which KPIs to track?‍

It's easy to convince yourself that you need to measure everything for your organization. Remember, though, that KPIs mean key performance indicators. You want to only measure the most important and influential metrics. To best identify the right KPIs, tie your measures back to your strategy goals. Make sure they relate to what you hope to achieve in your organization.

What is an example of a bad KPI?‍

A bad KPI example is "Number of emails sent," as it measures activity without considering the quality or impact of those emails. It doesn't provide insight into whether the emails contribute to achieving business goals like customer engagement or sales growth.

What is the best example of a well-written KPI?

A well-written KPI example is "Increase website conversion rate by 15% over the next six months." This KPI is specific, measurable, achievable, relevant, and time-bound (SMART), providing a clear target and timeframe.

What is another word for KPI?‍

Another term for KPI is "performance metric" or "performance indicator." These terms also refer to metrics used to assess the effectiveness of actions in achieving objectives.

What does KPI stand for?‍

KPI stands for Key Performance Indicator. It is a quantifiable measure used to evaluate the success of an organization, employee, or project in meeting objectives for performance.

What is a KPI example?‍

An example of a KPI is "Customer retention rate." For instance, a company might aim to increase its customer retention rate by 10% over the next year, measuring the percentage of repeat customers.

‍How do you calculate a KPI?‍

To calculate a KPI, first define the objective and the metrics to measure. Use the formula: KPI Value = (Actual Value / Target Value) * 100. For example, if your target sales are $100,000 and you achieve $90,000, your KPI is (90,000 / 100,000) * 100 = 90%.

How do you measure a KPI?‍

Measure a KPI by collecting relevant data consistently, analyzing it against set targets or benchmarks, and using tools like dashboards or reports to track progress and performance over time.

How do you create a KPI?‍

To create a KPI, start by identifying your business objectives. Then, make sure the KPI is specific, measurable, achievable, relevant, and time-bound (SMART). For example, "Increase monthly website visitors by 20% within the next six months."

What is the difference between OKR and KPI?‍

OKRs (Objectives and Key Results) are goal-setting frameworks that outline what you want to achieve (objectives) and how you'll measure success (key results). KPIs are metrics that track performance toward specific goals. OKRs define goals and the steps to achieve them, while KPIs measure the performance of those steps.

Read our blog on OKRs vs. KPIs: Breaking Down The Difference

What is the difference between a KPI and a metric?‍

A metric is a quantifiable measure used to track and assess the status of a specific business process. A KPI is a type of metric that is specifically tied to business objectives and used to gauge success in achieving key goals.

How do you create a KPI dashboard in Excel?‍

To create a KPI dashboard in Excel, list your KPIs, input data into Excel, use formulas to calculate KPI values, and employ charts and conditional formatting to visualize the data. Pivot tables can help organize and summarize data efficiently.

What are the 4 requirements to make a KPI?‍

The four requirements to make a KPI are: it must be specific, measurable, achievable, and relevant. Additionally, it should be time-bound, providing a clear timeframe for achieving the target.

How do you write a good key performance indicator?‍

A good KPI is written by defining a clear and specific objective, ensuring it is measurable, setting it to be achievable and relevant to the business goals, and making it time-bound. For example, "Reduce customer support response time to under 2 hours within the next quarter."

What is the most common KPI in business?‍

The most common KPI is revenue growth, which tracks the increase in a company's sales or income over a specified period. This KPI is fundamental as it directly reflects the business's financial health and success.

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