Why is KPI important?

Published: 28.12.21Marketing

KPI, or key performance indicators, are important metrics used to measure the performance of an individual, team, department, or organization. KPIs are used in a wide range of industries and functions to track progress towards goals and objectives, identify areas for improvement, and drive success. In this article, we will discuss why KPIs are important and how they can benefit your organization.

Measure Success

KPIs are important because they allow organizations to measure success. By setting specific, measurable KPIs, organizations can track their progress towards achieving their goals and objectives. KPIs provide a clear and objective way to assess performance, making it easier to identify areas where improvements can be made.

Drive Improvement

KPIs are also important because they help drive improvement. By tracking KPIs, organizations can identify areas where performance is falling short and take action to address these issues. This can include implementing new processes or procedures, providing additional training or resources, or making other changes to improve performance.

Focus on What Matters

KPIs are important because they help organizations focus on what matters most. By identifying the most important metrics to track, organizations can ensure that their efforts are focused on the areas that are most critical to success. This helps to avoid wasting time and resources on activities that are not driving results.

Align Teams

KPIs are also important because they help align teams around common goals and objectives. By setting shared KPIs, teams can work together towards a common purpose, driving collaboration and cooperation. This can help to break down silos and ensure that everyone is working towards the same objectives.

Support Decision-Making

Finally, KPIs are important because they support decision-making. By providing objective data on performance, KPIs can help organizations make informed decisions about resource allocation, strategy, and other key areas. This can help to ensure that decisions are based on facts rather than assumptions or opinions.


KPIs are an essential tool for measuring performance and driving success. By setting specific, measurable KPIs, organizations can track progress towards their goals, identify areas for improvement, and make informed decisions. KPIs help to focus efforts on what matters most, align teams around common goals, and drive continuous improvement. Whether you are leading a team, managing a department, or running an entire organization, KPIs are an essential tool for driving success.

Author Avatar Rafał Namieciński

Chief Executive Officer. Sets the direction of Firmao's development. Under his leadership, Firmao CRM has become one of the leading CRM systems in Poland. On the blog, he shares thoughts on the latest CRM industry trends, offers tips on implementing and using CRM systems.

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