What are key performance indicators (KPIs)?

Key performance indicators (KPIs) are specific, measurable values that demonstrate how effectively an organization is achieving its key business objectives. By utilizing KPIs, organizations can evaluate their success at reaching targets and strategic goals. These indicators provide a clear gauge of performance and can be specific to various departments or projects within a company, such as sales, marketing, finance, or operations.

The focus on measurable values is particularly important, as KPIs must be quantifiable to help assess performance over time. This allows organizations to make data-driven decisions based on how well they are doing against their defined goals.

The other options describe concepts that do not encapsulate the essence of KPIs. For instance, unmeasurable values lack the quantifiable aspects needed to be useful as performance indicators. Qualitative measures, while valuable for certain analyses, do not fit within the framework of what KPIs represent; KPIs require quantifiable metrics. Lastly, statistical tools for data cleaning pertain to the processes of preparing and validating data prior to analysis rather than assessing organizational performance. Thus, option B correctly captures the nature and function of KPIs within an organization.