Which Of The Following Is An Example Of A KPI?

• A. Revenue Growth Rate
• B. Mood Of Employees
• C. Number Of Training Hours Per Employee Not Tied To Objective
• D. The Color Of Office Walls

Answer: (A)

A KPI is a metric that directly measures progress toward a specific, important business objective. Revenue growth rate fits this because it is a quantifiable measure of how quickly revenue is increasing over a defined period, which directly reflects the objective of growing the business. It is actionable and time-bound—you can set targets (like a 12% year-over-year growth) and track progress over time. The other options don’t model outcomes tied to objectives: mood of employees measures attitude rather than a result you’re aiming for; training hours per employee not tied to an objective track activity rather than outcome; and the color of office walls has no impact on performance. So revenue growth rate is the best example of a KPI.