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A KPI (Key Performance Indicator) measures how effectively a business, team, project, or individual meets strategic goals and objectives, allowing for monitoring of performance. In contrast, an SLA (Service Level Agreement) is a broader contract between a business and a service provider, outlining expected service standards. For example, a business may establish an SLA for IT support, detailing what services will be delivered and the expected performance levels. While there is overlap between KPIs and SLAs, KPIs can be included in the SLA to define the standards of service expected.