Numbers and measures
KPI
A measure that shows progress towards a goal.
- Numbers and measures
Definition
A measure that shows progress towards a goal. A KPI needs a current value, a target and a rule for what counts as on track.
Also called
Key performance indicator
Example
Nord Signal's KPI is the contracted pass success rate. In 2025 it was 99.6% (290,000 delivered of 291,160 scheduled). The target is 99.7%, so it fell short.
Nord Signal AB is a fictional company created for Insyt.
See how it works
- Define a business goal
- Agree the measure and target
- Monitor consistent results
- Act and review outcomes
Check your understanding
Common mistake: A measure is not automatically a key performance indicator. It must support a goal and a decision.
What makes a KPI usable?
Show explanation
An agreed definition, relevant target, reporting period, owner and action.
For your role
Choose your role to see what this term means in your work.
Why it matters
It focuses a team on the few numbers that matter most.
Where it is used
Dashboards, performance reviews and business plans.