The acronym KPI stands for Key Performance Indicator. KPIs are measurable values that demonstrate how effectively an organization is achieving its key business objectives. They serve as essential metrics for assessing performance across various areas, such as finance, marketing, operations, and customer satisfaction. By defining specific KPIs, organizations can track progress, identify areas for improvement, and make informed decisions to drive growth. KPIs help align teams with strategic goals, ensuring that resources are effectively utilized and that organizational performance is continually evaluated against defined success criteria.