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Business TermKPI

重要業績評価指標(KPI)

Key Performance Indicator (KPI) / キー・パフォーマンス・インジケーター

A KPI is a critical metric that tracks progress or execution quality toward a goal.

Formula
KPI attainment = actual value / target value. In practice, separate leading KPIs from lagging KPIs.
Use when
Key Performance Indicator (KPI) shapes how leaders allocate resources for improvement and review cycles.
Watch out
Metric definition, target, cadence, owner, data source
Updated: 2026. 05. 14.Quality: ReviewedSources: 2
What it means

A key performance indicator translates strategy and KGIs into measurable operating signals. A useful KPI has a clear owner, target, time frame, data source, review cadence, and a connection to decisions the team can actually make.

How to calculate it

KPI attainment = actual value / target value. In practice, separate leading KPIs from lagging KPIs. Formula | KPI attainment = actual value / target value. In practice, separate leading KPIs from lagging KPIs. | Use it as the primary operating calculation Bridge | KGI target -> success factor -> leading KPI -> initiative -> lagging KPI -> review | Use it to explain changes between reviews Segment | Split by customer, product, channel, and period | Use it to find deterioration hidden by averages

LensFormula / treatmentWhen to use it
FormulaKPI attainment = actual value / target value. In practice, separate leading KPIs from lagging KPIs.Use it as the primary operating calculation
BridgeKGI target -> success factor -> leading KPI -> initiative -> lagging KPI -> reviewUse it to explain changes between reviews
SegmentSplit by customer, product, channel, and periodUse it to find deterioration hidden by averages
What counts / what does not

This metric is comparable only when inclusion and exclusion rules stay stable. Include | Metric definition, target, cadence, owner, data source | These connect measurement to action Exclude | Vanity metrics and numbers whose definition keeps changing | They distort operating focus Define explicitly | Leading/lagging, individual/team, thresholds, exceptions | These create governance clarity

ItemTreatmentWhy it matters
IncludeMetric definition, target, cadence, owner, data sourceThese connect measurement to action
ExcludeVanity metrics and numbers whose definition keeps changingThey distort operating focus
Define explicitlyLeading/lagging, individual/team, thresholds, exceptionsThese create governance clarity
What moves the number

Breaking the metric into drivers clarifies what action should follow the review. Strategy link | KPIs that do not affect the goal add noise Cadence | Metrics must update fast enough for action Data quality | Definition drift destroys trust

DriverMetric impact
Strategy linkKPIs that do not affect the goal add noise
CadenceMetrics must update fast enough for action
Data qualityDefinition drift destroys trust
When it helps

Key Performance Indicator (KPI) shapes how leaders allocate resources for improvement and review cycles. Using Key Performance Indicator (KPI) emphasizes evidence‑based decisions over opinions or urgency alone. It affects risk management because changes are validated before being scaled.

  • Key Performance Indicator (KPI) shapes how leaders allocate resources for improvement and review cycles.
  • Using Key Performance Indicator (KPI) emphasizes evidence‑based decisions over opinions or urgency alone.
  • It affects risk management because changes are validated before being scaled.
How to use it
  • Define the objective and the metric before changing the process.
  • Start with a small test to learn quickly and limit downside risk.
  • Document the new standard and train the team consistently.
  • Review results on a fixed cadence to prevent drift.
  • Treat feedback as input for the next iteration, not the final answer.
Decision cautions

Do not decide from the number alone; align assumptions, period, segments, and companion metrics. Too many KPIs erase priorities. Only lagging KPIs create late intervention. Direct incentive links can create metric gaming.

  • Too many KPIs erase priorities.
  • Only lagging KPIs create late intervention.
  • Direct incentive links can create metric gaming.
Read with

Companion metrics turn a good-or-bad reading into a discussion of causes and actions. KGI | Final outcome | KPI should move the goal BSC | Multi-perspective scorecard | Prevents metric imbalance PDCA | Review cycle | Turns KPI into action

MetricRoleWhy read together
KGIFinal outcomeKPI should move the goal
BSCMulti-perspective scorecardPrevents metric imbalance
PDCAReview cycleTurns KPI into action
Example

If the KGI is 110% quarterly NRR, KPIs may include active usage, renewal meeting completion, and expansion proposal volume. Weekly leading KPI review allows intervention before the quarter-end result is fixed. After the review, the owner did not treat the metric in isolation. They compared it with companion metrics, checked segment differences, documented assumption changes, and verified data quality before changing the plan. Whether the number improved or deteriorated, the team identified the driver, assigned an owner, and fed the learning into the next budget, operating review, or experiment cycle.

Compare with

KGI | Final goal metric | KPI is an operating progress metric OKR | Objective and key results | KPI is often a stable management metric Metric | Any measurement | KPI is a deliberately important metric

MetricDifferenceWhy read together
KGIFinal goal metricKPI is an operating progress metric
OKRObjective and key resultsKPI is often a stable management metric
MetricAny measurementKPI is a deliberately important metric
Common mistakes
  • Key Performance Indicator (KPI) is not a one‑time project; it is a repeatable loop.
  • Following the steps does not guarantee success without good data.
  • It does not replace expertise; it structures how expertise is applied.
Frequently asked questions
How many KPIs should a team have?

Use only the number the team can act on. Three to seven important KPIs is often practical.

How is KPI different from KGI?

KGI is the final outcome; KPI tracks progress or execution quality toward it.

Can KPIs be used for evaluation?

Yes, but pair them with quality checks to reduce gaming.

Sources
SourcesKindLink
OpenStax: Principles of ManagementTier-S open textbookOpen
Wikipedia: Key performance indicatorSupplemental referenceOpen