Key Performance Indicators (KPIs) are metrics used to measure the performance of a business against predetermined goals. They provide an objective way to assess progress, identify areas for improvement and make strategic decisions about the direction of a business. With KPIs, companies can measure the success or failure of various operations and activities, from customer retention rates to cost savings. By using KPIs to track progress across different parts of their organization, businesses can gain valuable insights into where they need to focus their efforts in order to meet their goals.