Key performance indicators, or KPIs, help organizations define and measure progress toward their goals and objectives. They must be quantifiable and measurable.
A lot of things are measurable, but it is important to only consider those that will help the organization meet their goals and to keep the number of KPIs limited to a select few to keep everyone focused. Each department or function then may have their own KPIs, that support the overall company KPI. It is also important to have targets for each KPI so people understand where they are at any point in time.
KPIs give everyone a clear understanding of what is important and what they need to make happen. They rally and focus your organization around a select few goals so that progress can be made in those areas.