A key performance indicator (KPI), also known as a performance metric, is an essential tool in the field of performance management and corporate governance. KPIs are quantitative measures that are used to evaluate the progress and success of a company, project or specific activity. They are used to quantify performance in various aspects and provide objective data for decision-making processes.

KPIs can be used in almost every area of a company, whether in sales, marketing, human resources, finance or production. They make it possible to measure the efficiency and effectiveness of processes, identify trends and set targets. Examples of KPIs include sales growth, customer satisfaction rate, conversion rate, stock turnover rate and much more.

Selecting the right KPIs is crucial as they have a significant impact on the direction of a company's efforts. It is important to ensure that the selected KPIs are in line with the company's objectives and overall strategy. In addition, KPIs should be monitored and evaluated regularly to ensure that they provide relevant and up-to-date information.

The implementation of KPIs often requires collaboration between different departments and the use of data analysis tools. Modern technologies and software solutions have made it much easier to collect and analyse KPI data, enabling companies to react quickly to changes and optimise their performance.

In an increasingly data-driven business world, KPIs are crucial for making informed decisions and gaining a competitive advantage. They enable companies to track their performance, identify weaknesses and recognise opportunities for growth and improvement. Ultimately, KPIs are an indispensable tool to ensure the success and sustainability of organisations.