What do KPIs (Key Performance Indicators) measure?

Key Performance Indicators (KPIs) are essential tools used by businesses to measure quantifiable metrics that reflect the efficacy and overall performance of various aspects of the organization. By focusing on quantifiable metrics, KPIs provide concrete data that helps businesses evaluate their success in achieving strategic objectives.

For instance, KPIs can measure financial performance, sales growth, operational efficiency, and customer satisfaction, among other critical aspects. The use of KPIs allows organizations to benchmark their performance against industry standards, set targets for improvement, and make data-driven decisions to enhance business operations.

The other options, while related to important aspects of business performance, do not encapsulate the primary function of KPIs as comprehensive, measurable indicators of success across different areas of a business. Employee satisfaction, market share, and customer service response times can indeed be relevant metrics, but they represent specific areas that can fall under broader KPIs rather than defining what KPIs measure as a whole.