The acronym KPI stands for Key Performance Indicator in performance management. KPIs are measurable values that demonstrate how effectively an organization is achieving its key business objectives. These indicators help companies assess their success in reaching targets, enabling informed decision-making and strategic planning. By defining and tracking KPIs, organizations can identify areas for improvement and optimize performance. KPIs can be financial metrics, customer satisfaction scores, or operational efficiency measures, making them essential for aligning team efforts with overall business goals and ensuring accountability.