Which statement best describes the relationship between KPIs and success factors?

The statement that KPIs are metrics that quantify success factors is accurate because key performance indicators (KPIs) serve as measurable values that demonstrate how effectively an organization is achieving its key business objectives, known as success factors. Success factors are the critical areas of focus that ensure an organization makes progress toward its goals, while KPIs provide concrete metrics to evaluate that progress.

By quantifying these success factors, KPIs offer a way to assess the performance of processes and initiatives, allowing organizations to make data-driven decisions. For instance, if a success factor is customer satisfaction, the corresponding KPI might be the customer satisfaction score, which helps determine if the organization is meeting its objectives in that area.

The connection between KPIs and success factors is essential for strategic planning and improvement, as well-aligned KPIs can help steer the organization toward success by providing insights into operational effectiveness and areas needing attention. Thus, understanding that KPIs quantify and measure the success of identified factors is fundamental in the context of performance management and continuous improvement.