Key performance indicators (KPIs) are measurable values that show how effectively an organization is achieving its strategic and operational goals. KPIs help managers and employees monitor and evaluate their progress, identify strengths and weaknesses, and make data-driven decisions to improve performance. Some examples of KPIs are:

1. Choosing the right KPIs: selecting too many or too few KPIs, or choosing irrelevant or misleading ones, can reduce their effectiveness and impact.


2. Measuring and reporting KPIs: collecting, analyzing, and presenting KPI data can be time-consuming, costly, and complex, requiring adequate systems and skills.


3. Communicating and acting on KPIs: sharing and interpreting KPI results can be challenging, especially when they involve sensitive or controversial issues. Moreover, KPIs should not be used as a substitute for judgment or creativity, but rather as a guide for action and improvement.