Key Performance Indicators (KPIs) are the critical indicators of progress toward an intended goal. Good KPIs provide guidance to achieving strategic and operational improvement, improve decision making, and brings attention to what matters most.

KPIs depends on your setting goals (the desired target you are aiming to achieve) and tracking your progress against that goal. The use of KPIs depends on the use of leading indicators that keep your focus on benefits.

A Leading indicator is a precursors of future success; a lagging indicator reports an event after the fact. 

Good KPIs:

• Provide objective evidence of progress towards achieving a desired goal.
• Measure what is intended to occur to help inform better decision making.
• Offer a comparison to gauge the degree of performance desired.
• Can track efficiency, effectiveness, quality, timeliness, governance, compliance, behaviors, economics, project performance, personnel performance or resource utilization.
• Takes both leading and lagging indicators into consideration.