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Key Performance Indicator, also known as KPI, is a value that can be estimated or measured, which shows the effectiveness of your business in meeting and exceeding its key objectives. KPIs are as valuable as the actions they inspire, and are often downplayed as KPIs are a means of communication. Here are 5 proven steps to design meaning performance metrics, indicators, and measures, and how to set KPIs. Assess the impact of a performance indicator using the SMART technique.