The acronym KPI stands for Key Performance Indicator, a measurable value that demonstrates how effectively an organization is achieving its key business objectives. Organizations use KPIs to evaluate their success at reaching targets and goals. They can be high-level, focusing on overall organizational performance, or low-level, looking at departmental or individual performance. Examples of KPIs include sales growth, customer satisfaction scores, and operational efficiency metrics. By monitoring KPIs, businesses can make informed decisions and adjustments to enhance their performance and align with strategic goals.