What are key performance indicators (KPIs)?

Key performance indicators (KPIs) are metrics specifically designed to evaluate the success and performance of an organization or particular activity over time. They help in measuring workflow efficiency and effectiveness by providing quantifiable data that can be tracked against predetermined goals or industry benchmarks. By analyzing these metrics, organizations can identify strengths and weaknesses, make informed decisions, and optimize processes for better performance.

In contrast, the other options provided focus on different aspects of organizational functionality. Budget forecasts relate to financial planning, tools for managing team communications pertain to management and collaboration, and reports for HR evaluations deal with employee performance and management. While each of these components plays a role in overall organizational success, only the KPIs serve directly to measure and track operational efficiency and effectiveness.