# What is a KPI? > **KPI:** A KPI (key performance indicator) is a measurable value that shows how well a company, team or project is progressing toward one specific goal. - Source: https://ai-presentations.com/glossary/kpi/ - Updated: 21 October 2026 - Language: English - German version: https://ai-presentations.com/de/glossar/kpi/ Also called: key performance indicator, performance indicator A **KPI** is a number you track on purpose, because it shows progress toward one specific goal. Companies can measure hundreds of things. Only the few that tell you whether the goal is being reached are KPIs. A usable KPI has five parts: | Part | What it settles | Example | | ---------- | ------------------------- | ---------------------------------------------------------- | | Goal | Which goal it serves | Deliver reliably | | Definition | How it is calculated | Deliveries on or before the promised date ÷ all deliveries | | Source | Where the data comes from | Transport system, weekly | | Target | What counts as good | 96% | | Owner | Who answers for it | Head of operations | ## A worked example A logistics company shows its Board the same four KPIs every quarter: revenue €48.6m (+18% on last year), EBITDA margin 14.2% (+2.5 percentage points), net cash €11.8m and on-time delivery 96.4%. The margin is defined as EBITDA divided by revenue: €6.9m ÷ €48.6m = 14.2%. Because the definitions never change, the Board can compare quarter with quarter. *Four headline KPIs, each with its change against last year, in the same order every quarter. Example with invented numbers.* 3. All four headline KPIs improved on last year ## How to choose and show KPIs 1. **Start from the goal,** then pick one to three KPIs that show progress toward it. 2. **Write each definition down once** and reuse it in every deck. 3. **Add a comparison to every KPI:** a target, the previous period, or both. A color status such as [RAG](https://ai-presentations.com/glossary/rag-status/) helps when targets exist. 4. **Include one leading KPI.** Revenue reports the past; the number of qualified proposals sent hints at the next quarter. 5. **Keep the set stable.** Add KPIs rarely and remove them openly. ## KPI, metric and OKR All KPIs are metrics, but most metrics are not KPIs. A KPI monitors what has to stay healthy, such as on-time delivery. The [OKR](https://ai-presentations.com/glossary/okr/) entry compares it with a goal for change. ## Typical mistakes - **Vanity metrics.** Page views or followers rise whether or not the business improves. - **No written definition.** Two decks then show two different numbers under one name. - **Too many.** Twenty KPIs on a slide means none is key. - **No target or comparison.** A bare number invites the question "is that good?" - **No owner.** A KPI nobody answers for does not change. To see what drives a KPI, split it into a [driver tree](https://ai-presentations.com/glossary/driver-tree/). ## Frequently asked questions ### What is the difference between a KPI and a metric? A metric is any number you can measure. A KPI is one of the few metrics that shows whether a specific goal is being met. Every KPI is a metric, but most metrics are not KPIs. ### How many KPIs should a presentation show? As many as the audience can take in at a glance, usually four to six on one slide. Put the rest in a table or the appendix. Show the same KPIs in the same order every period so readers can compare. ### What is the difference between a KPI and an OKR? A KPI monitors what has to stay healthy, such as on-time delivery. An OKR is a goal for a single period. The OKR entry puts the two side by side. ### What is the difference between leading and lagging KPIs? A lagging KPI reports what has already happened, such as revenue or margin. A leading KPI moves first and lets you steer, such as the number of qualified proposals sent. Good reports show both. ## Related pages - [OKR](https://ai-presentations.com/glossary/okr/): OKRs pair one qualitative objective with measurable key results. Learn the definition, an example, scoring and how to present OKRs on a slide. - [NPS](https://ai-presentations.com/glossary/nps/): NPS measures customer loyalty from −100 to +100: the share of promoters minus the share of detractors. Definition, formula, a worked example, tips for slides. - [Driver tree](https://ai-presentations.com/glossary/driver-tree/): A driver tree breaks a metric such as revenue or profit into the measurable drivers behind it, linked by simple math. See a worked example you can copy. - [RAG status](https://ai-presentations.com/glossary/rag-status/): RAG status is a traffic-light rating: red, amber or green. Definition, what each color means and how to show it on a status slide so it can be trusted. - [Unit economics](https://ai-presentations.com/glossary/unit-economics/): Unit economics show whether one customer earns more than it costs to win and serve. Learn the core metrics, the formulas and a worked example you can copy. - [Board presentation](https://ai-presentations.com/templates/board-presentation/): A board presentation template with the 8 slides a quarterly board meeting needs: summary, KPIs, revenue, EBITDA bridge, initiatives, risks and decisions. - [Quarterly business review](https://ai-presentations.com/templates/quarterly-business-review/): Plan a customer QBR on 6 slides: results, adoption, commitments, the plan for next quarter and the decisions you need from the customer. With an example deck. --- ai-presentations.com is published by Slaide (https://www.slaide.de), a sole proprietorship run by Nathalie Scholl in Heilbronn, Germany. [How this site is written, checked and corrected](https://ai-presentations.com/editorial-policy/).