{"id":39535,"date":"2026-11-12T17:10:12","date_gmt":"2026-11-12T16:10:12","guid":{"rendered":"https:\/\/miuniversity.edu\/?p=39535"},"modified":"2026-11-12T17:10:19","modified_gmt":"2026-11-12T16:10:19","slug":"what-is-a-kpi","status":"publish","type":"post","link":"https:\/\/miuniversity.edu\/en\/blog\/what-is-a-kpi\/","title":{"rendered":"What Is a KPI and How Do You Use It in Business?"},"content":{"rendered":"<section id=\"hero-post\" class=\"hero-post\">\n  <picture class=\"hero-post__bg\">\n    <!-- tatamiento horizontal -->\n    <source media=\"(orientation: landscape) and (min-width: 1024px)\" srcset=\"https:\/\/miuniversity.edu\/wp-content\/uploads\/2026\/10\/KPI2.jpg\">\n    <!-- tatamiento vertical -->\n    <img decoding=\"async\" class=\"hero-post__img\" src=\"https:\/\/miuniversity.edu\/wp-content\/uploads\/2026\/10\/KPI2.jpg\" alt=\",\" title=\"\">\n    <noscript>\n      <img decoding=\"async\" src=\"https:\/\/miuniversity.edu\/wp-content\/uploads\/2026\/10\/KPI2.jpg\" alt=\",\" title=\"\">\n    <\/noscript>\n  <\/picture>\n  <div id=\"breadcrumbs\" class=\"breadcrumbs\">\n    <p class=\"container\">\n      <span>\n        <span>\n          <a href=\"https:\/\/miuniversity.edu\/en\/\" data-gtm-container=\"breadcrumb\" data-gtm-action=\"navigation\">\n            Home          <\/a>\n        <\/span>\n        &gt;\n        <span class=\"breadcrumb_last\" aria-current=\"page\">\n          <strong>What Is a KPI and How Do You Use It in Business?<\/strong>\n        <\/span>\n      <\/span>\n    <\/p>\n  <\/div>\n  <h1 class=\"hero-post__title\">\n    What Is a KPI and How Do You Use It in Business?  <\/h1>\n      <div class=\"hero-post__wysiwyg\">\n      Every business wants to succeed, whether that means increasing sales, improving customer service, finishing projects on time, or expanding into new markets.     <\/div>\n  <\/section>\n\n\n<p class=\"wp-block-paragraph\">You need to have a plan, and you also need a way to determine if the plan is working. That\u2019s why many businesses use <strong>KPIs<\/strong>. But <strong>what is a KPI<\/strong> exactly?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>KPI stands for<\/strong> <strong>key performance indicator<\/strong>, which is a measurable value that shows businesses how effective their strategies are at moving them toward a goal. Tracking the right <strong>KPIs<\/strong> means organizations can make more informed decisions and adjust their strategies if they need to.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Students in MIU\u2019s <a href=\"https:\/\/miuniversity.edu\/en\/academics\/master-degree\/masters-degree-in-business-intelligence\/\">Master&#8217;s Degree in Business Intelligence<\/a> <strong><\/strong>learn how to analyze data, build dashboards, and use <strong>key performance indicators<\/strong> to support strategic decision-making.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a KPI (key performance indicator)?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Imagine a company wants to increase its sales this year. If that\u2019s the case, one of its <strong>KPIs<\/strong> could be monthly revenue, since that would clearly indicate whether they\u2019re headed in the right direction.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, <strong>what is a KPI in a business<\/strong> team that has been assigned the objective of improving customer satisfaction? Customer satisfaction scores would be a logical answer.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why is it essential to measure performance in a business with KPIs?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Not monitoring <strong>KPI metrics<\/strong> could end up costing a company time and resources on strategies that aren\u2019t actually pointing them toward success. <strong>Tracking KPIs<\/strong> means that organizations can do the following more successfully:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>See whether or not they\u2019re progressing toward their goals.<\/li>\n\n\n\n<li>Identify problems before they become more costly.<\/li>\n\n\n\n<li>Stop guessing and build strategies based on real data.<\/li>\n\n\n\n<li>Keep teams focused.<\/li>\n\n\n\n<li>Measure the impact of changes over time.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What are the main types of KPIs?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Quantitative vs. qualitative<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Quantitative <strong>key performance indicators<\/strong> measure numerical results. That could be revenue, the number of conversions obtained from an email campaign, or employee attendance, depending on what an organization\u2019s goals are. Those results are all easy to measure with numbers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Qualitative <strong>KPIs<\/strong> are focused on areas like customer satisfaction or employee engagement, which aren\u2019t strictly numerical. To measure them, businesses can use surveys or other kinds of feedback.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Leading vs. lagging<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Leading <strong>KPIs<\/strong> let businesses know where they\u2019re likely to end up if current trends continue. For example, if they\u2019re seeing an increase in qualified leads today, that\u2019s a sign that they could see increased sales in the not-too-distant future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lagging <strong>KPIs<\/strong> do the opposite because they measure results that have already been achieved.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using both together gives businesses a more complete picture of where they might be headed and what they&#8217;ve already accomplished.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Strategic vs. operational<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Strategic <strong>KPIs<\/strong> have to do with long-term goals, and operational <strong>KPIs<\/strong> focus more on day-to-day objectives.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples of strategic <strong>KPIs<\/strong> would be measurements like profit margin, revenue growth, market share, and percentage of revenue from new markets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Monitoring whether tasks are being completed on time or production is staying on track are both examples of operational <strong>KPIs<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Strategic and operational <strong>KPIs<\/strong> are two different things, but they\u2019re strongly connected, since keeping things running smoothly on a daily basis contributes to long-term success.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are some KPI examples by area?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Marketing KPIs<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Teams use <strong>marketing KPIs<\/strong> to evaluate whether their campaigns are producing the business results they\u2019re looking for. If you\u2019re wondering <strong>what a KPI in marketing is,<\/strong> here are some examples:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Website conversion rate (how many customers complete a desired action)<\/li>\n\n\n\n<li>The cost of acquiring a new customer<\/li>\n\n\n\n<li>Advertising return on investment<\/li>\n\n\n\n<li>The percentage of email recipients who click on a link in the email<\/li>\n\n\n\n<li>Number of potential customers who request more information<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Sales KPIs<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re wondering <strong>what a KPI in sales is<\/strong>, common examples include the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Monthly revenue<\/li>\n\n\n\n<li>Growth in sales<\/li>\n\n\n\n<li>The average value of each sale<\/li>\n\n\n\n<li>The percentage of leads that end up as customers<\/li>\n\n\n\n<li>Number of repeat customers (retention rate)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These are all indicators that help managers forecast performance and uncover opportunities to improve their sales process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Financial KPIs<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Examples of KPIs<\/strong> that financial teams find useful are the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Profit margin<\/li>\n\n\n\n<li>Cash flow<\/li>\n\n\n\n<li>Revenue growth<\/li>\n\n\n\n<li>Operating costs<\/li>\n\n\n\n<li>Return on investment (ROI)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What is a KPI in project management?<\/strong> To assess how well a project is staying on schedule and within budget, project managers can use <strong>KPIs<\/strong>. And <strong>what is an example of a KPI<\/strong>? Common examples are the percentage of on-time tasks and the number of project milestones achieved.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"461\" src=\"https:\/\/miuniversity.edu\/wp-content\/uploads\/2026\/10\/KPI-1024x461.jpg\" alt=\",\" class=\"wp-image-39523\" title=\"\" srcset=\"https:\/\/miuniversity.edu\/wp-content\/uploads\/2026\/10\/KPI-1024x461.jpg 1024w, https:\/\/miuniversity.edu\/wp-content\/uploads\/2026\/10\/KPI-300x135.jpg 300w, https:\/\/miuniversity.edu\/wp-content\/uploads\/2026\/10\/KPI-768x346.jpg 768w, https:\/\/miuniversity.edu\/wp-content\/uploads\/2026\/10\/KPI-1536x691.jpg 1536w, https:\/\/miuniversity.edu\/wp-content\/uploads\/2026\/10\/KPI.jpg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What is the difference between a metric, a KPI, and an OKR?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Metrics<\/strong>, <strong>KPIs<\/strong>, and <strong>OKRs<\/strong> serve different purposes, even though people often use the terms interchangeably.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A <strong>metric<\/strong> is any piece of information that\u2019s measurable, such as website visits or employee attendance. It&#8217;s a broad term. <strong>What is the difference between a KPI and a metric?<\/strong> The <strong>meaning of &#8220;KPI&#8221;<\/strong> is narrower since it\u2019s a <strong>metric<\/strong> that directly measures progress toward an important business goal.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>OKRs<\/strong>, or Objectives and Key Results, aren\u2019t <strong>metrics<\/strong>. Rather, they\u2019re a framework for setting goals. They define what businesses want to achieve and how they\u2019ll measure their success. Organizations often use both together. <strong>OKRs<\/strong> define what an organization wants to achieve, while <strong>KPIs<\/strong> measure progress toward those objectives.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to define good KPIs with the SMART method<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Before choosing <strong>key performance indicators<\/strong>, organizations need to define exactly what their goals are. According to the Balanced Scorecard Institute, \u201cIf you don\u2019t know what you\u2019re trying to accomplish, it is too early for <strong>KPIs<\/strong>!\u201d Businesses can follow the SMART framework, which means that a <strong>KPI<\/strong> should be <strong>S<\/strong>pecific, <strong>M<\/strong>easurable, <strong>A<\/strong>chievable, <strong>R<\/strong>elevant, and <strong>T<\/strong>ime-bound.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Source: <a href=\"https:\/\/www.kpi.org\/KPI-Basics\/KPI-Development\/\" target=\"_blank\" rel=\"noopener\"><em>How to Develop KPIs \/ Performance Measures<\/em><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s not enough to state \u201cincreased sales\u201d as a business goal. Rather, an effective <strong>KPI<\/strong> would look something like this: \u201cincrease monthly online sales by 15% during the next 12 months.\u201d This makes expectations clear, realistic, and easier to assess.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a KPI report and dashboard?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What is a KPI report?<\/strong> It\u2019s a performance summary for a specific period of time, which could be a week, month, quarter, or year. <strong>KPI reports<\/strong> tell you whether or not you\u2019re meeting your goals and where you might need to make some adjustments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What is a KPI dashboard?<\/strong> It provides the same information, but in visual format, with charts and graphs. So, <strong>KPI dashboards<\/strong> let you monitor results more easily and spot important changes or problem areas at a glance instead of having to comb over reports and spreadsheets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to master KPIs and business intelligence with a master\u2019s degree<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses are generating more data than ever, but data alone doesn\u2019t guarantee they\u2019ll make better decisions or achieve more success. They need professionals who know how to analyze all that data and turn it into clear insights.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">MIU\u2019s <a href=\"https:\/\/miuniversity.edu\/en\/academics\/master-degree\/masters-degree-in-business-intelligence\/\">Master&#8217;s Degree in Business Intelligence<\/a> helps students develop practical skills and gain experience in data analysis, reporting, dashboard design, and business intelligence tools while they learn how to identify meaningful <strong>KPI metrics<\/strong>, evaluate business performance, and support strategic decision-making.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">References<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Balanced Scorecard Institute. (n.d.). <em>How to develop KPIs \/ performance measures<\/em>. KPI.org. <a href=\"https:\/\/www.kpi.org\/KPI-Basics\/KPI-Development\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">https:\/\/www.kpi.org\/KPI-Basics\/KPI-Development\/<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Balanced Scorecard Institute. (n.d.). <em>What is a key performance indicator (KPI)?<\/em> KPI.org. <a href=\"https:\/\/www.kpi.org\/KPI-Basics\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">https:\/\/www.kpi.org\/KPI-Basics\/<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Microsoft. (n.d.). <em>What is business intelligence?<\/em> Microsoft. <a href=\"https:\/\/www.microsoft.com\/en-us\/power-platform\/products\/power-bi\/topics\/business-intelligence\" target=\"_blank\" rel=\"noopener\">https:\/\/www.microsoft.com\/en-us\/power-platform\/products\/power-bi\/topics\/business-intelligence<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Microsoft. (n.d.). <em>What is Power BI?<\/em> Microsoft Learn. <a href=\"https:\/\/learn.microsoft.com\/en-us\/power-bi\/fundamentals\/power-bi-overview?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">https:\/\/learn.microsoft.com\/en-us\/power-bi\/fundamentals\/power-bi-overview<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You need to have a plan, and you also need a way to determine if the plan is working. That\u2019s [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":39529,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_programas_asociados":[],"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-39535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/miuniversity.edu\/en\/wp-json\/wp\/v2\/posts\/39535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/miuniversity.edu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/miuniversity.edu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/miuniversity.edu\/en\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/miuniversity.edu\/en\/wp-json\/wp\/v2\/comments?post=39535"}],"version-history":[{"count":1,"href":"https:\/\/miuniversity.edu\/en\/wp-json\/wp\/v2\/posts\/39535\/revisions"}],"predecessor-version":[{"id":39538,"href":"https:\/\/miuniversity.edu\/en\/wp-json\/wp\/v2\/posts\/39535\/revisions\/39538"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/miuniversity.edu\/en\/wp-json\/wp\/v2\/media\/39529"}],"wp:attachment":[{"href":"https:\/\/miuniversity.edu\/en\/wp-json\/wp\/v2\/media?parent=39535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/miuniversity.edu\/en\/wp-json\/wp\/v2\/categories?post=39535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/miuniversity.edu\/en\/wp-json\/wp\/v2\/tags?post=39535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}