Key Performance Indicator (KPI)

What is a KPI?

A key performance indicator (KPI) is a measurable value that shows how well a person, team, or organisation is progressing toward a specific goal. KPIs turn objectives into something trackable, so progress and success can be seen rather than assumed. The word “key” matters: good practice is to focus on the few measures that truly reflect success, not to track everything.

KPIs are used across every function, including People and L&D, where they measure things like engagement, retention, and development impact, and they underpin how coaching ROI is assessed.

Why KPIs matter

You cannot manage what you do not measure. KPIs create focus, align people around what matters, and make it possible to see whether an effort is working and to improve it. Poorly chosen KPIs, though, can drive the wrong behaviour, so what you measure needs care.

What makes a good KPI

Tied to a goal. It measures progress toward something that matters.
Measurable and clear. Everyone understands how it is calculated.
Actionable. People can influence it through their work.
Few in number. A handful of key measures beat a cluttered dashboard.

KPIs often sit within a broader goal system such as OKRs for people or are written as SMART goals.

People and L&D KPI examples

Common people KPIs include employee engagement scores, retention rate, eNPS, manager effectiveness, and, for development, measures of behaviour change and programme completion.

Measure what coaching changes

Coachello tracks the KPIs that show coaching is working, from behaviour change to engagement and retention, so you can see the impact rather than assume it.

Put KPIs behind your coaching. Book a demo.

FAQs

What is the difference between a KPI and a metric?

All KPIs are metrics, but not all metrics are KPIs. A KPI is a metric chosen because it is key to a specific goal, whereas a metric is any measurement.

What is the difference between a KPI and an OKR?

A KPI is a single measure of ongoing performance. OKRs are a goal-setting framework of objectives and key results. KPIs can be used as key results within OKRs.

How many KPIs should you track?

Few. Focusing on a small number of key measures keeps attention where it matters, rather than diluting it across a crowded dashboard.