What are KPIs used for?

Key Performance Indicators (KPIs) are essential tools used to measure an organization's progress toward achieving its strategic goals. They provide quantifiable metrics that help organizations evaluate their performance in various areas that are aligned with overarching business objectives. KPIs can cover a wide range of factors, including financial performance, operational efficiency, customer satisfaction, and employee productivity, thus helping management make informed decisions based on evidence.

By focusing on specific targets and outcomes, KPIs allow organizations to track their advancement over time, identify areas requiring improvement, and allocate resources effectively to reach desired performance levels. This direct link to strategic goals makes KPIs an integral part of the planning and evaluation process in management.

While the other options may involve important aspects of business operations—like employee engagement, market trends, and customer relations—these factors do not encompass the primary function of KPIs, which is to directly measure progress towards strategic objectives.