Key performance indicator (KPI)
Quality Management
Definition. A key performance indicator is a measure selected to show how well an organisation or unit is achieving its most important objectives.
Explanation
KPIs are a small subset of all available indicators, chosen because they are linked to strategy, can be acted on and are reported regularly. Parmenter (2015) distinguishes key result indicators, which summarise outcomes, from performance indicators that guide daily action.
In hospitals, KPIs often cover access, flow, safety, clinical quality, finance and staff. Mainz (2003) stresses that clinical indicators need clear definitions, risk adjustment and evidence of a link to quality; otherwise targets encourage gaming and attention to what is measured at the expense of what matters.
Related concepts
Quality indicator Benchmarking Statistical process control
Read on The Health Topics
- Performance Management in the Oncology Hospital: From KPI to Management Decision. An Introduction (101)
- Performance and Quality Management in an Oncology Hospital: From KPI to Management Decision
- Enhancing Patient Safety through Critical Value Management
- Essential Data for Internship Monitoring in Health Technology
- Variable Taxonomy in Oncology Operations and Management Research: Roles, Relationships and Effects
- Balancing the NHS Balanced Scorecard: A Pioneering Attempt to Untangle Healthcare Performance Indicators
References
Mainz, J. (2003). Defining and classifying clinical indicators for quality improvement. International Journal for Quality in Health Care, 15(6), 523–530.
Parmenter, D. (2015). Key performance indicators: Developing, implementing, and using winning KPIs (3rd ed.). Wiley.
Cite this entry: Kurutkan, M. N. (2026). Key performance indicator. In The Health Topics glossary. https://healthtopic.org/glossary/key-performance-indicator/
Articles that discuss this concept
6 articles on The Health Topics use this concept. The list updates as new articles are published.
- Performance Management in the Oncology Hospital: From KPI to Management Decision. An Introduction (101) 11
- Performance and Quality Management in an Oncology Hospital: From KPI to Management Decision 10
- Essential Data for Internship Monitoring in Health Technology 2
- Enhancing Patient Safety through Critical Value Management 2
- Variable Taxonomy in Oncology Operations and Management Research: Roles, Relationships and Effects 2
- Balancing the NHS Balanced Scorecard: A Pioneering Attempt to Untangle Healthcare Performance Indicators 1