Key performance indicator (KPI)

Health Management Glossary

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

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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/

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