Key Performance Indicator
Definition
A quantitative measure that tracks performance against a specific objective relevant to the company's strategic or operational goals. A key performance indicator must have a documented definition specifying the exact calculation methodology, the data source, the update frequency, and the owner responsible for its accuracy. Under the FFI Standard, a measure that lacks a documented definition is not a key performance indicator regardless of how it is labelled in reporting.
Common Misapplication
The most common misapplication is maintaining a large set of metrics labelled as key performance indicators without differentiating between leading indicators that drive future performance and lagging indicators that record past outcomes. A dashboard of twenty metrics that are all lagging indicators does not provide the forward visibility required for operational management.
FFI Standard Reference
This term is defined and applied in Book 6, Section 6.4: The KPI Framework Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Key Performance Indicator. https://ffistandard.org/glossary/key-performance-indicator/. 2026.