Tracking and measuring success is a crucial way to know if you have reached where you were trying to go. If people didn't monitor their progress the world would be a mess as no one would know if they are accomplishing anything. A KPI (Key Performance Inidicator) is a way to check up your success, or failure (we hope not!), along the way. Let's say you set a goal to decrease the number of bugs your software has by 50% over 1 year. A relevant KPI would be, at 3 months we should have decreased the bugs by 12.5%.
Customer Support Tickets: How many new tickets are coming in?, how many tickets are you resolving?, how long is it taking you to resolve each ticket?, how many back and forth emails does it take to resolve the tickets?, and what is the average response time of your team to each ticket?
New Features: How many new features have you added?, what is the useage rate of the new features?, how many customer support tickets is your new feature causing?
Dev Performance: Project projections vs Project Burndown
Site Traffic: how much traffic is coming in?, where is it coming from?, where is the traffic geographically?, is the traffic who we want?
There are a number of really great ways to measure IT using KPIs. The key is to stick with the metrics and learn from them. If your team gets a KPI report back with numbers that aren't great, ask "what can we do to improve this number" and "why didn't we meet this number earlier". An IT KPI can be something you make specific to your business too. Get creative with it and make sure it is relevant. If you want to learn more about using KPIs to keep you motivated read this - KPIs to keep you motivated.