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A KPI, or Key Performance Indicator, measures the effectiveness of a business, team, project, or individual in achieving strategic goals and objectives. It serves as a tool to monitor progress toward these goals. In contrast, an SLA, or Service Level Agreement, is a broader agreement between a business and a service provider outlining expected service standards and performance metrics. While KPIs can help define the expectations within an SLA, they focus on specific performance measures, whereas SLAs set the overall framework for service expectations. Thus, KPIs are more about individual or project performance, while SLAs govern the relationship and commitments between parties involved in providing services.
