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What is a Key Performance Indicator (KPI)?

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Final answer:

A Key Performance Indicator (KPI) is a measurable value used to gauge how effectively a company is achieving key business objectives, with specific KPIs varying by industry. Health metrics, similar to KPIs, measure well-being and inform improvements in healthcare.

Step-by-step explanation:

A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the business, while low-level KPIs may focus on processes in departments such as sales, marketing, HR, support, and others.

Examples of KPIs include net profit margin, which is a financial performance indicator, customer satisfaction scores for service-based industries, and for e-commerce businesses, conversion rates could serve as a KPI. Each industry has specific KPIs that are important to its success.

Health metrics, on the other hand, assess various aspects of the well-being of individuals or groups, ranging from life expectancy to rates of certain illnesses. These can be considered KPIs of a nation's healthcare system or overall health status. They provide valuable insights for policymakers and healthcare providers to improve health outcomes.

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