---
title: "What is KGI?"
description: "KGI. which is the numerical goal that a company ultimately aims for will be explained below."
url: https://help.flow-insight.com/en/articles/8-what-is-kgi
collection: "KPI glossary"
updated: 2026-08-06
language: en
alternates: [ja]
---

# What is KGI?

KGI. which is the numerical goal that a company ultimately aims for will be explained below.

KGI is short for "Key Goal Indicator" — a numerical target a company ultimately aims to achieve.

Retail stores commonly set their KGI as sales budget or profit margin, using a concrete number ("hit this quarter's ¥X sales budget," "grow sales by X%") to make it a precise, usable target.

## Benefits of setting a KGI

A KGI keeps employees consistently aware of the goal a company (or store) needs to hit, and drives the company's growth. Setting one gets you the following benefits:

1.  **Shows employees the company's (or store's) goal** — Employees given a clear numerical target can see their own contribution and stay motivated in their work.
    
2.  **Clarifies what needs to be done** — Pairing a KGI with related KPIs lets you review the results of focused effort on a numerical basis.
    
3.  **Shows progress at the store level** — Since a KGI is a number, it removes subjectivity — setting one per store makes each store's progress clear at a glance.
    

## How to set a KGI

A good KGI should include all 5 of the following elements:

1.  **Specific** — A concrete number anyone can understand.
    
2.  **Measurable** — A number that can actually be measured or tallied.
    
3.  **Achievable** — A realistic number.
    
4.  **Relevance** — A number where hitting your KPIs results in hitting the KGI.
    
5.  **Time-bound** — A target with a defined time period.
    

## Keys to achieving your KGI

1.  **Set your KPIs** — KPI is short for "Key Performance Indicator" — a more granular indicator that breaks a KGI down into its components. KPIs and KGIs should always be planned together.
    
2.  **Build a plan** — Once you've set the KPIs you need, build a rough plan toward hitting your KGI. Since real-world conditions shift with the external environment, treat the plan as a reference based on past trends rather than a fixed roadmap.
    
3.  **Evaluate regularly** — Check both KGI and KPI progress regularly to confirm you're taking the right actions. A common mistake: your KGI (e.g. sales budget) is tracking well overall, but you fixate on one underperforming KPI anyway. Remember a KPI is just one input into your KGI.
    
4.  **Act immediately when you spot something to improve** — Regular evaluation will surface gaps from your original plan. When you find a factor affecting your KGI, act on it right away — and don't hesitate to loop in your manager if a call is hard to make alone.
    

## Wrapping up

A KGI is an important target for your company's growth. Managing it well alongside your KPIs significantly improves your odds of hitting your goals. We hope this helps.

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If you have any questions or feedback, please contact support at [support@flow-solutions.com](mailto:support@flow-solutions.com).