'KPI' originates from English, specifically the phrase 'Key Performance Indicator', where 'key' meant 'important', 'performance' meant 'how well something is done', and 'indicator' meant 'a sign or measure'.

'KPI' changed from the phrase 'Key Performance Indicator' and increasingly was shortened to the abbreviation 'KPI' in business and management contexts during the late 20th century.

Initially, it meant 'a sign used to indicate performance', but over time it evolved into its current meaning of 'a measurable value used to assess progress toward objectives'.