What is a Key Performance Indicator (KPI)?

 

Peter Drucker famously said, “What gets measured gets done.” Measurement is an essential management tool, as it helps us determine if our work is making an impact, demonstrate value, manage resources, and focus improvement efforts.

Key Performance Indicators (KPIs) are the critical (key) quantifiable indicators of progress toward an intended result. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most.

Managing with the use of KPIs includes setting targets (the desired level of performance) and tracking progress against those targets.

Managing with KPIs often means working to improve performance using leading indicators, which are precursors of future success, that will later drive desired impacts indicated with lagging measures.

HOW TO DEVELOP KPIS / PERFORMANCE MEASURES

The Balanced Scorecard Institute’s (BSI) Measure-Perform-Review-Adapt (MPRA) framework is a disciplined, practical, and tested approach for developing and implementing a KPI system. It gives organizations a way to systematically articulate a shared vision of what you are trying to achieve, set practical goals, develop meaningful indicators that can be managed and used for decision-making, and establish long-term discipline around getting things done.

These practical step-by-step methodologies and tools were designed to help organizations:

• • Select and design performance measures that are far more meaningful than simple brainstorming or benchmarking can produce
  • Get buy-in from staff and stakeholders to enthusiastically own performance measurement and improvement
  • Bring measures to life in a consistent way, using the right data and with the right ownership
  • Design insightful and actionable reports and dashboards that focus discussion on improvement
  • Convincingly hit performance targets, and make measurement about transformation

Measurement development is only the starting point for the improvement process. Once measures have been established, the Perform-Review-Adapt cycle gives the organization a chance to take improvement actions, assess impact, and adapt. Adaptation can take the form of incremental reforecasting for the next quarter or more dramatic changes in strategic intent. Rather than “setting and forgetting” their KPIs, teams use this review cycle as the discipline needed to keep their teams on track and adjust to changes in their strategic environment. It borrows the key principle from the agile world that assumes that we cannot possibly know everything about our strategic intentions at the beginning of the process and so need a disciplined learning process.

Always begin by articulating your strategy properly. Use one of the many popular frameworks for strategy or goal setting (Balanced Scorecard, SMART, MBO, OKRs, WIGs, or other) to set objectives/goals and determine your strategy for achieving them. If you don’t know what you are trying to accomplish, it is too early for KPIs!

Pre-Measurement

Launch the Program

The program is launched by project champion(s) and key stakeholders. Existing measurement materials and results are examined, a performance management good practice gap analysis is completed, key stakeholders are interviewed, and other assessment activities are completed to customize workshops to incorporate work done to date. Key activities covered during the program launch include:

• • Engaging Leadership
  • Communicating “Why formally measure performance?”
  • Establishing Teams and Roles
  • Agreeing on Process and Procedures
  • Considering Automation
  • Fostering a Performance Culture

Articulate Strategic Intent

Before discussing measures of success, first one must understand what you are trying to accomplish. Even the most narrowly focused operational activities can be more efficient by better communicating intent. We recommend using one of the many popular frameworks for strategy or goal setting (e.g., Balanced Scorecard, SMART, MBO, OKRs, WIGs, or other) to structure the conversations around goals and your strategy for achieving them. If you don’t know what you are trying to accomplish, it is too early for KPIs!

Measure

There are four process components within the measurement development phase of the MPRA framework:

• • Identify objectives and intended result(s)
  • Understand alternative measures
  • Select the right measurement(s) for each objective
  • Define and document selected performance measures

Identify Objectives and Intended Results

The development of meaningful measures starts with Objectives. The building blocks of strategic intent, Objectives are the linchpins of a successful KPI system, whether it is focused on strategy or operations. Objectives are qualitative, continuous improvement actions (outcomes) critical to strategy success. Once the objective is identified, unambiguous intended result(s) of the objective are defined. Once agreement is reached on the 0bjective and intended result, it’s easier to explicitly define what to measure.

Understand Alternative Measures

Once the objective and intended result are clear, alternative measures can be identified. The first option includes any direct measure of the intended result. If the intended result cannot be measured directly, more indirect measures will be identified, usually by analyzing measurable components of the objective based on a hypothesis around correlation or contribution to the result. The logic model, cause-effect analysis and/or process flow analysis are three popular tools that can be used to better understand measurable components before selecting indirect measurements.

Select the Right Measure(s) for Each Objective

Narrow down the potential measures identified in the previous steps and select final measures using a disciplined system that scores options based on their relative strength and data availability. Choose metrics that have meaning and relevance, and:

• • Answer key user questions about the organization’s performance towards strategic objectives
  • Provide information needed to make better strategic decisions
  • Are valid and verified, measuring what is intended
  • Encourage desirable employee behaviors
  • Avoid an undue data collection burden or unintended consequences

Define and Document Selected Performance Measures

The Performance Measure Data Definition Table is used to document the essential information comprising every performance measure on a scorecard. This is a critical step for transitioning from performance management system development to implementation and use. It is important to document the details of the measure so that the measure is consistently calculated and presented from reporting period to reporting period, allowing for more meaningful performance analysis and conclusions.

Perform

The performance review cycle follows a regular pattern (usually quarterly) organized around a simple pattern: set targets, implement improvement actions, track performance, and learn from the results. In the Perform phase employees organize their activities around two process components:

• • Set Targets and Thresholds
  • Implement Improvement Initiatives

Set Targets and Thresholds

Describing desired performance levels and determining how data is interpreted is as important as selecting the measure. Performance is based on targets, the desired level of performance for a specific reporting period, and thresholds, the upper and lower limits of desired performance around a target value. Thresholds create the exact points where an indicator displays green for good performance, yellow for satisfactory or red for poor.

Implement Improvement Initiatives

The team will generally not achieve objectives and hit performance targets without taking action. Actions or improvement initiatives are developed, prioritized, and implemented to achieve objectives. Rather than create a long list of potential actions and projects, the organization focuses on a short list of experiments designed to make the biggest difference in desired outcomes.

Review

In the Review phase of the process, data is transformed into evidence-based knowledge and understanding. The Review phase is organized around two process component steps:

• • Collect and Visualize Performance
  • Analyze and Draw Conclusions

Collect and Visualize Performance

Gathering and tracking data on the historic levels and current trends in performance encompasses more than just counting things and capturing data. Creating meaningful visual comparisons enables deeper interpretation and better decisions. Visualizing performance over time identifies trends that show data direction and development and provide context for the underlying story relative to strategic intent.

Analyze and Draw Conclusions

Effective analysis helps people make better decisions that will drive improved strategic outcomes. The key is to evaluate the effect of each improvement action on an ongoing basis using the same principles and methods deployed in the earlier steps, monitor performance data for the desired signals relative targets and thresholds, enable dialog around conclusions, and maintain a continuous process improvement focus.

Adapt

The Adapt phase of the process explores whether improvement strategies were effective and correctly executed, and if assumptions turned out to be valid. It includes an assessment of quarterly performance results, which can lead to a reforecasting of performance targets, a new set of actions or initiatives, or a complete recalibration of strategy, as needed. Sometimes the Adapt phase leads to the continuation of current activities and sometimes it means refocusing Strategic Intent based on a changing strategic environment. This phase focuses on identifying what worked well and what didn’t, taking corrective action and becoming a high-performance organization.

Report, Share, and Learn

Reporting and sharing information are the first steps toward making better decisions and acting on the information in a way that improves overall performance. Review meetings are held to review, interpret, and discuss performance information. These meetings are organized around desired results and highlight progress toward the intended results, as well as towards actions designed to improve gaps in performance. This gives the team an ongoing indication of whether actions taken are effective. The information and knowledge from this process should continuously feed the strategic planning cycle.

Good KPIs:

• Provide objective evidence of progress towards achieving a desired result
• Measure what is intended to be measured to help inform better decision making
• Offer a comparison that gauges the degree of performance change over time
• Can track efficiency, effectiveness, quality, timeliness, governance, compliance, behaviors, economics, project performance, personnel performance or resource utilization
• Are balanced between leading and lagging indicators

The image below shows the inter-connectivity relationships among different types of performance measures. Operational measures focus on the use of resources, processes, and production (output). These measures “drive” the outcomes an organization desires, with some outcomes being more intermediate than other, more final, outcomes. As employees work to better understand these relationships, they learn to increase focus on actions that lead to desired strategic results.

Terminology Examples

Let’s say my business provides coffee for catered events. Some inputs include the coffee (suppliers, quality, storage, etc.), the water, and time (in hours or employee costs) that my business invests. My process measures could relate to coffee making procedure or equipment efficiency or consistency. Outputs would focus on the coffee itself (taste, temperature, strength, style, presentation, accessories, etc.). And desired outcomes would likely focus on customer satisfaction and sales. Project measures would focus on the deliverables from any major improvement projects or initiatives, such as a new marketing campaign.

Let’s say someone wants to use KPIs to help them lose weight. Their actual weight is a lagging indicator, as it indicates past success, and the number of calories they eat per day is a leading indicator, as it predicts future success. If the person weighs 250 lbs / 113 kg (a historical trend is called a baseline), and a person they would like to emulate is 185 lbs / 84 kg (comparison research is called benchmarking), they might set an 1,700 calorie-per-day target (desired level of performance) for the leading KPI in order to reach their lagging KPI target of 185 lbs / 84 kg by the end of a year.

The Logic of Different Types of Measures

The relative business intelligence value of a set of measurements is greatly improved when the organization understands how various metrics are used and how different types of measures contribute to the picture of how the organization is doing. KPIs can be categorized into several different types:

• Inputs measure attributes (amount, type, quality) of resources consumed in processes that produce outputs
• Process or activity measures focus on how the efficiency, quality, or consistency of specific processes used to produce a specific output; they can also measure controls on that process, such as the tools/equipment used or process training
• Outputs are result measures that indicate how much work is done and define what is produced
• Outcomes focus on accomplishments or impacts, and are classified as Intermediate Outcomes, such as customer brand awareness (a direct result of, say, marketing or communications outputs), or End Outcomes, such as customer retention or sales (that are driven by the increased brand awareness)
• Project measures answer questions about the status of deliverables and milestone progress related to important projects or initiatives

Every organization needs both strategic and operational measures, and some typically already exist. An entire family of measures can be developed to help understand how effective strategy or operations is being executed, from various categories:

• Strategic Measures track progress toward strategic goals, focusing on intended/desired results of the End Outcome or Intermediate Outcome. When using a balanced scorecard, these strategic measures are used to evaluate the organization’s progress in achieving its Strategic Objectives depicted in each of the following four balanced scorecard perspectives:
• • Customer/Stakeholder
  • Financial
  • Internal Processes
  • Organizational Capacity
• Operational Measures, which are focused on operations and tactics, and designed to inform better decisions around day-to-day product / service delivery or other operational functions
• Project Measures, which are focused on project progress and effectiveness
• Risk Measures, which are focused on the risk factors that can threaten our success
• Employee Measures, which are focused on the human behavior, skills, or performance needed to execute strategy

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By Department

KPI Examples for Customer Service

• Agent's full-time employees (FTEs) as percentage of total call center FTEs
• Answering percentage (number of sales calls answered/total number of sales calls offered)
• Average after-call work time
• Average number of calls/ service request per handler
• Average queue time of incoming phone calls
• Cost per minute of handle time
• Costs of operating call center/ service desk
• Email backlog
• Field service technician utilization
• Hit rate (products sold compared to total received sales calls)
• Inbound abandon rate
• Inbound agent dialed calls
• Inbound availability rate
• Inbound average talk time
• Inbound average wrap time
• Inbound call center leads created
• Inbound call center opportunities created
• Inbound calls handled
• Inbound calls handled per agent hour
• Inbound service level
• Number of complaints
• Percentage of customer service requests answered in given timeframe
• Percentage of calls transferred
• Total calling time per day/week/month
• 
  

• KPI Examples for Finance

• • Accounting costs
  • Accounts payable turnover
  • Accounts receivable collection period
  • Accounts receivable turnover
  • Actual expenses
  • Amount due (per customer)
  • Average customer receivable
  • Average monetary value of invoices outstanding
  • Average monetary value of overdue invoices
  • Average number of trackbacks per post
  • Budget variance for each key metric
  • Budgeted expenses
  • Capital expenditures
  • Cash conversion cycle (CCC)
  • Cash flow return on investments (CFROI)
  • Cost of goods sold (COGS)
  • Cash dividends paid
  • Cost per pay slip issued
  • Creditor days
  • Current receivables
  • Cumulative annual growth rate (CAGR)
  • Cycle time for expense reimbursements
  • Cycle time to process payroll
  • Cycle time to resolve an invoice error
  • Cycle time to resolve payroll errors
  • Days payable
  • Debtor days
  • Direct cost
  • Discounted cash flow
  • Earnings before interest and taxes (EBIT)
  • Earnings before interest, taxes, depreciation (EBITDA)
  • Economic value added (EVA)
  • Employee available time
  • Employee scheduled time
  • Employee work center loading
  • Enterprise value/ takeover value
  • Expense account credit transactions
  • Expense account debit transactions
  • Expense account transactions
  • Fixed costs
  • Gross profit
  • Gross profit margin
  • Indirect costs
  • Inventory turnover
  • Inventory value
  • Invoice processing costs
  • Internal rate of return (IRR)
  • Market share gain comparison percentage
  • Net change in cash
  • Net income
  • Net present value (NPV)
  • Number of invoices outstanding
  • Number of unapplied receipts
  • Number of past-due loans
  • Open receivables
  • Open receivables amount (per customer)
  • Operating leverage
  • Past-due receivables
  • Payables turnover
  • Payment errors as a percentage of total payroll disbursement
  • Percentage accuracy of financial reports
  • Percentage of bad debts against invoiced revenue
  • Percentage of electronic invoices
  • Percentage in dispute (per customer)
  • Percentage of invoices being queried
  • Percentage of invoices requiring special payment
  • Percentage of low-value invoices
  • Percentage of open receivables (per customer)
  • Percentage of payable invoices without purchase order
  • Percentage of service requests posted via web (self-help)
  • Perfect order measure
  • Quick ratio
  • Receivables
  • Receivables turnover
  • Return on capital employed (ROCE)
  • Sales growth
  • Share price
  • Systems cost of payroll process as a percentage of total payroll cost
  • Total payables
  • Total energy used per unit of production
  • Total receivables
  • Total sales
  • Unapplied receipts
  • Variable costs
  • Weighted days delinquent sales outstanding
  • Weighted days delinquent sales outstanding (per customer)
  • Weighted terms outstanding
  • Weighted terms outstanding (per customer)

  
  

• KPI Examples for Human Resources

• • Actual versus budgeted cost of hire
  • Annualized voluntary employee turnover rate
  • Annualized voluntary turnover rate
  • Average headcount of employees each human resources (HR) employee working is caring for
  • Average interviewing costs
  • Average length of placement in months for the manager
  • Average length of service of all current employees
  • Average length of service of all employees who have separated
  • Average months placement
  • Average number of training hours per employee
  • Average number of vacation days per employee
  • Average performance scores of departing employees
  • Average retirement age
  • Average salary
  • Average salary for all employees reporting to the selected manager
  • Average sourcing cost per hire
  • Average time employees are in same job/ function
  • Average time to competence
  • Average time to update employee records
  • Average training costs per employee
  • Compensation cost as a percentage of revenue
  • Contingent workers
  • Employee satisfaction with training
  • End placements
  • Full-time employees (FTEs) per human resources (HR) department FTE
  • Headcount of contingent workers for the manager
  • HR average years of service (incumbents)
  • HR average years of service (terminations)
  • HR department cost per FTE
  • HR headcount - Actual
  • HR headcount - Available
  • HR to employee staff ratio
  • Job vacancies as a percentage of all positions
  • New hire quality
  • Time to fill
  • Hiring manager satisfaction
  • Cost per hire
  • Staffing efficiency
  • Internal, external, and total headcount recruiting costs and ratios
  • Number of end placements made in the reporting period for the manager
  • Part-time employees as a percentage of total employees
  • Percentage of employees receiving regular performance reviews
  • Percentage of employees that are near or at max for their vacation balances
  • Percentage of HR budget spent on training
  • Percentage of new hire retention
  • Ratio of internal versus external training
  • Ratio of standard level wage to local minimum wage
  • Return on investment (ROI) of training
  • Total overtime hours as a percentage of all work hours
  • Training penetration rate (percentage of employees completing a course compared to all FTEs)
  • Workforce stability

  
  

• KPI Examples for Information Technology

• • Account create success
  • Account termination success
  • Active directory performance index
  • Alert-to-ticket ratio
  • Average data center availability
  • Call center PBX availability
  • Campus PBX availability
  • Customer connection effectiveness
  • Data center capacity consumed
  • Email client availability
  • Exchange server availability
  • Incidents from change
  • Internet proxy performance
  • Network availability - High availability sites
  • Network availability - Standard sites
  • Network manageability index
  • No problem found/duplicate tickets
  • Percentage of branch office backup success
  • Percentage of circuits exceeding target utilization
  • Percentage of IT managed servers patched at deadline
  • Percentage of production servers meeting software configuration standards
  • Percentage of security update restarts within maintenance window
  • Percentage successful remote access server (RAS) connections
  • Phone answer service level
  • Priority 1 and priority 2 network incidents meeting SLA
  • Product adoption status and compliance
  • Restore success rate
  • Server growth rate
  • Server manageability index
  • Service desk client satisfaction - Percentage dissatisfied
  • Service desk tier 1 resolution rate
  • Service desk time to escalate
  • Service desk time to resolve
  • Storage utility service availability
  • Storage utility utilization
  • Virtual machine provisioning interval
  • Virtual server utility availability
  • Web server availability

  
  

• KPI Examples for Marketing

• 
  
• • Ad click-through ratio (CTR)
  • Average response rates of campaigns
  • Brand awareness percentage
  • Brand consideration
  • Brand credibility
  • Brand strength
  • Column inches of media coverage
  • Consumer awareness
  • Contact rate (number of contacts effectively contacted / number of contacts in the target list)
  • Cost per converted lead
  • Cost per lead
  • Cost per mille (CPM)
  • Delivery of materials
  • Effective reach
  • Gross rating point (GRP)
  • Growth sustainability rate of brand
  • Leads generated
  • Marketing budget awareness-demand ratio
  • Marketing budget ratio (MER)
  • Number of article placements in trade magazines
  • Number of client visits
  • Number of product focus groups conducted
  • Number of customer satisfaction surveys administered
  • Number of placements in trade magazines
  • Number of trade shows attended / participated in
  • Percentage of customers willing to promote your product/service
  • Q score (a way to measure the familiarity and appeal of a brand, etc.)
  • Response rate
  • Return on investment (ROI) of brand
  • Return on marketing investment (ROMI)
  • Revenue generation capabilities of brand
  • Staying in budget
  • Target rating point
  • Total cost of customer acquisition
  • Transaction value of brand
  • Website click-throughs
  • Website hits
  • Website leads generated

  
  

• KPI Examples for Sales

• 
  
• • Actual calls
  • Actual sales value versus initial bid
  • Age of sales forecast
  • Average administrative time per sales person
  • Average deal size
  • Average number of activities (calls, meetings, etc.) to close a deal
  • Average price discount per product
  • Average price discount per sales person
  • Average revenue per product
  • Call quota
  • Closed sales
  • Closing ratio
  • Customer acquisitions costs as a percentage of sales value
  • Customer churn ratio
  • Customer loyalty
  • Customer purchase frequency
  • Customer satisfaction
  • Frequency of sales transactions
  • Gross margin per product
  • Gross margin per sales person
  • New sales person ramp-up time
  • Number of certified partners
  • Number of deals per partner
  • Number of sales orders by FTE
  • Number of sales people meeting their quota
  • Number of units sold per day/week/month/quarter/year
  • Partner churn ratio
  • Partner profit margin
  • Percentage of converted opportunities
  • Percentage of online sales revenue
  • Percentage of sales due to launched product/services
  • Percentage of sales representatives to achieve quota
  • Percentage of sales revenue via partner channel
  • Pipeline by sales stage
  • Qualified leads
  • Qualified opportunities
  • Revenue per sales person
  • Sales capacity
  • Sales cycle time
  • Sales per department
  • Sales person turnover
  • Sales quota
  • Time utilization
  • Unweighted sum of deal size in sales pipeline
  • Value of sales lost
  • Win/loss ratio percentage

  
  

• By Department

• 
  

• KPI Examples for Accommodation and Food Services

• 
  

• GENERAL

  • Average revenue per guest
  • Average revenue per table
  • Complaints per head
  • Complaints per order Labor cost per guest
  • Labor cost per table Minutes per table turn
  • Profit per table

  BAR AND CELLAR MANAGEMENT

  • Average profit percentage on sales Carrying cost of stock Gross profit on sales
  • Sales and stocktaking discrepancies
  • Sales per head
  • Stock turnover
  • Stock value

  FRONT OF HOUSE AND RESTAURANT MANAGEMENT

  • Customer satisfaction
  • Front of house labor hours
  • Food, dessert, and beverage sales per head
  • Front of house labor percentage
  • Linen costs
  • Number of customers
  • Revenue per available seat hour (RevPASH)
  • Seating efficiency
  • Strike rate - Number of diners over number of occupying guests
  • Total sales per head - Total sales divided by the number of customers.

  KITCHEN MANAGEMENT

  • Food cost percentage - Food cost over food sales
  • Food costs per head
  • Kitchen labor percentage - Kitchen labor cost over food sales
  • Kitchen labor hours - Over sales
  • Kitchen linen costs
  • Percentage of sales per selling items
  • Stock value
  • Total food costs

  MANAGEMENT OF FINANCE AND ADMINISTRATION

  • Cash position at bank
  • Administration labor costs
  • Computer and technology efficiency (percentage of downtime, POS accuracy, staff equipment literacy rate)
  • Taxes owed
  • Return on investment
  • Sales and costs - Actual versus budget as a percentage
  • Stocktaking discrepancies per department
  • Total (short term) accounts due
  • Total accounts payable

  SALES AND MARKETING PLUS FUNCTION MANAGEMENT

  • Booking forecast - Future x weeks / months, special holidays
  • Number of function inquiries, percentage of campaign cost against functions
  • Marketing and advertising costs and cost per response as ratio
  • Number of customers
  • Press mentions
  • Campaign response rate
  • Sales inquiry conversion rate - The number of inquiries that turn into actual sales
  • Sales per head (across all areas)
  • Repeat visits, especially by top 100 or 200 customers

  STAFFING

  • Average hourly pay
  • Average length of employment
  • Profit/markup on function labor charge-out (caterers)
  • Labor turnover (number of new staff in any one week or month)
  • Sick days taken (as a percentage of total available working days)
  • Total labor cost percentage
  • Total labor hours per each section
  • Wage cost percentage - Wage costs as a percentage of sales

  
  

• KPI Examples for Administrative and Support; Waste Management and Remediation Services

• 
  
• • Electronics) Sub-sector indicators - For printed circuit board (PCB), semiconductor, and cathode ray tube (CRT) manufacture
  • Chemical emission rate per facility
  • Compliance with water license conditions
  • Cost per load
  • Demolition recovery index and new build recovery index
  • Discharge efficiency
  • Energy indicators
  • Facility saturation rate
  • Percentage of hazardous material over total waste
  • Percentage of reusable/recycled material
  • Percentage of sample failure
  • Percentage of total waste diverted from landfill and other disposal options
  • Percentage of waste recycled off site
  • Percentage of wastewater treatment works meeting license conditions
  • Percentage of waste reused off site
  • Percentage of waste reused on site
  • Pollution indicators (emissions to air, effluent, solid waste)
  • Potable water consumption
  • Renewable energy consumption
  • Segregation rate
  • Site level indicators of resource efficiency
  • Surface runoff efficiency
  • Total recycled content by material value
  • Transport time efficiency
  • Waste cost per carriageway or pipeline length
  • Waste cost per project as percentage
  • Waste cost per project footprint
  • Waste cost per square meter floor area
  • Waste generation (tonnage) per project
  • Waste generation (tonnage) per square meter/ foot
  • Waste generation (volume) per project
  • Waste generation (volume) per square meter/ foot
  • Wastewater discharge

  EMISSIONS TO AIR

  • Acid rain, eutrophication, and smog precursors
  • Dust and particles
  • Greenhouse gases
  • Metal emissions to air
  • Ozone depleting substances
  • Volatile organic compounds

  EMISSIONS TO WATER

  • Nutrients and organic pollutants
  • Metal emissions to water

  EMISSIONS TO LAND

  • Acids and organic pollutants
  • Metal emissions to land
  • Pesticides and fertilizers
  • Radioactive waste
  • Waste (landfill, incinerated, and recycled)

  
  

• KPI Examples for Agriculture, Forestry, Fishing, and Hunting

• • 21-day weight per litter
  • Amount of trees planted versus actual planted by percentage
  • Average number of harvest per year
  • Carbon dioxide per square mile
  • Cost per wildfire
  • Customer satisfaction level (CSAT)
  • Domestic demands versus supply
  • Dust and particles per square mile
  • Establishment's occupancy
  • Establishment's rate
  • Export rate
  • Import rate
  • Increase or decrease in number of complaints over time
  • Increase or decrease in number of hunting applications over time
  • Industry employment source and turnover rate
  • Industry gross product
  • Industry revenue
  • Landslides caused by wildfires
  • Number of wildfires
  • Percentage of increase in rod license
  • Percentage of increase or decrease in fish count (in relation to ecological effects)
  • Percentage of hazards minimized within x hours of notification
  • Percentage of live birth (per each animal group)
  • Percentage of natural resources accessed
  • Percentage of natural resources sustained
  • Total wages
  • Wean per litter
  • Weight per litter at birth

  
  

• KPI Examples for Arts, Entertainment, and Recreation

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• INSTITUTIONAL KPIS

  • Album publication over total submission
  • Average ticket price per season
  • Cost per broadcast hour
  • Cost per performing night
  • Cost per production hour
  • Cost per viewer/ listener
  • Donation percentage of total revenue
  • Donation increase / decrease over time
  • Employer satisfaction rate
  • Employment rate
  • Gallery showing over total submission
  • Graduation rate
  • Increase/decrease number of performance nights per year
  • Market share
  • Net surplus percentage
  • Number of kindergarten through 12th grade school tours per year
  • Occupancy rate
  • Percentage of broadcast hours by genre
  • Percentage of national content (broadcasting organizations)
  • Percentage of overhead against total expenditure
  • Profit percentage
  • Ratio of amateur versus professional performers
  • Revenue
  • Seating efficiency
  • Special/guest appearance cost per revenue
  • Television show rating
  • Utilization rate (recording studio, concert hall, art studio)
  • Viewers/listeners for each medium as a percentage of total population

  PERSONAL KPIS

  • Number of awards
  • Number of gallery showings per year
  • Number of public appearances per year
  • Number of published recordings
  • Number of renowned awards (e.g., Billboard, Oscar, etc.)
  • Ratio of won competitions over participated

  
  

• KPI Examples for Construction

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• • Number of accidents
  • Number of accidents per supplier
  • Actual working days versus available working days
  • Cash balance - Actual versus baseline
  • Change orders - Clients
  • Change orders - Project manager
  • Client satisfaction - Client-specified criteria
  • Client satisfaction product - Standard criteria
  • Client satisfaction service - Standard criteria
  • Cost for construction
  • Cost predictability - Construction
  • Cost predictability - Construction (client change orders)
  • Cost predictability; Construction (project leader change orders)
  • Cost predictability - Design
  • Cost predictability - Design and construction cost to rectify defects
  • Customer satisfaction level
  • Day to day project completion ratio - Actual versus baseline
  • Fatalities
  • Interest cover (company)
  • Labor cost - Actual versus baseline
  • Labor cost over project timeline
  • Liability ratio (over asset) on current versus completion comparison
  • Number of defects
  • Outstanding money (project)
  • Percentage of equipment downtime
  • Percentage of labor downtime
  • Percentage of backlogs over project timeline
  • Percentage of unapproved change orders
  • Productivity (company)
  • Profit margin - Actual versus baseline profit margin over project timeline
  • Profit predictability (project)
  • Profitability (company)
  • Quality issues at available for use
  • Quality issues at end of defect rectification period
  • Ratio of value added (company)
  • Repeat business (company)
  • Reportable accidents (including fatalities)
  • Reportable accidents (non-fatal)
  • Return on capital employed (company)
  • Return on investment (client)
  • Return on value added (company)
  • Time for construction
  • Time predictability - Construction
  • Time predictability - Construction (client change orders)
  • Time predictability - Construction (project leader change orders)
  • Time predictability - Design
  • Time predictability - Design and construction
  • Time taken to reach final account (project)
  • Time to rectify defects

  
  

• KPI Examples for Educational Services

• 
  
• • Administrative expenses as a percentage of educational and general expenditures
  • Admission test scores for entering students
  • Annual student survey - Two-year comparison in five key areas
  • Attrition rate of online courses
  • Average course experience
  • Average daily attendance
  • Average daily participation percentages
  • Average endowment distribution by student
  • Average net academic cost and average percent discount
  • Average percentage consistently absent
  • Average student credit hours taught by tenure/ tenure track faculty by college
  • Average tenure or tenure track faculty salaries by college compared to peer benchmarks
  • Average undergraduate student credit load
  • Average student free application for federal student aid (FASFA) unmet financial need
  • Average graduating student debt
  • Choice into district - Number of students
  • Choice out of district - Number of students
  • Class attendance
  • Classroom and laboratory utilization
  • Comparison of most recent graduating high school classes to diversity of new 18-and 19-year-old students who enroll in the following fall term
  • Continuation rates of college students
  • Cost per graduate
  • Cost per meal (CPM)
  • Degrees awarded - Baccalaureate, masters, doctoral
  • Development expenditures as a percentage of total external income
  • Distance learning enrollment
  • Distance learning number of degree programs
  • Dollar value of restricted research expenditures
  • Dollar value of total external research grant applications and expenditures
  • Endowment value per student
  • Expenditures per student
  • Fewer students classified as needing special education services
  • Four-year graduation rate for community college transfer students with 30+ hours
  • Freshman retention rate by ethnic group and by financial aid category
  • Fund balance at x % of yearly expenditures
  • Graduate/ professional degrees in high demand fields
  • Home school students registered - Number of students
  • Increase of percentage of school-age students with disabilities participating in occupational education program
  • Increase of percentage of school-age students with disabilities receiving special education services in general class placements
  • Increase of percentage of preschool students with disabilities receiving special education services in settings that include nondisabled children
  • Increase of percentage of school-age students with disabilities receiving services in general education buildings
  • Institutional debt per student
  • Instructional expenses per student
  • International student load
  • International student headcount and percentage of FTE
  • Licensure exam pass rates
  • Licensure exam pass rates in program x
  • Master's-level five-year and doctoral ten-year graduation rate
  • Masters and doctoral graduates employed in state x compared to other state x graduates
  • National ranking of baccalaureate, masters, and doctoral degrees awarded to minority students
  • Nationally ranked programs
  • NCAA team sports athletics total wins
  • Non-instructional FTE per student FTSE, or non-instructional FTE to instructional FTE ratio
  • NSSE results in quality of student advising, entire educational experience, would attend again, overall satisfaction
  • Number of degrees awarded
  • Number of students per teacher
  • Number of total budgeted tenure/ tenure track faculty positions
  • Number of vocational degrees awarded
  • Percentage of academic staff with a doctorate
  • Percentage of full-time faculty who are women, are ethnic minorities, or have terminal degrees
  • Percentage of course requests satisfied by semester
  • Percentage of degree-seeking new transfers (of total enrollment)
  • Percentage of first year class in top 10% and top 25% of HS graduating class
  • Percentage of first year students requiring developmental education and successful completion percentage of developmental education
  • Percentage of graduating seniors from area high schools from most recent academic year who enroll in following fall term
  • Percentage of new students ages 18 to 19 who need developmental education based on their test scores
  • Percentage of tenure/tenure track faculty holding grants by college
  • Percentage of total positions endowed
  • Percentage of undergraduates receiving baccalaureate degrees with eight SCH or fewer above minimum requirement, number qualifying for state mandated rebate, and number requesting and receiving their rebate
  • Postdoctoral fellows
  • Program expenditures as a percentage of budgets Research rankings national and state Retention rates of students in vocational courses SCH taught by tenure/tenure track faculty vs. non-tenure/tenure track faculty by college
  • Six-year graduation rate and combined graduation/persistence rate
  • Student services expenditures per student FTSE
  • Students per faculty
  • Successful course completion
  • System-wide reduction in energy use over ten years
  • Technology transfer - new invention disclosures, patents issues, licenses and options executed, gross revenue from intellectual property
  • Time to a baccalaureate degree by area of study
  • Total budgeted endowed professorships and chairs
  • Total degree seeking new transfers
  • Total external gifts by alumni - Number and amount
  • Total external gifts by corporations - Number and amount
  • Total external gifts by foundations - Number and amount
  • Total external gifts by individuals - Number and amount
  • Total new transfer students
  • Total operating expenditures per student FTE
  • Total professorships and chairs positions filled
  • Total state appropriations per FTE student and tuition and fees per FTE student in constant dollars
  • Total state appropriations per FTE student compared to peers
  • Total stipend support for graduate students
  • Transportation costs per pupil
  • Tuition and mandatory fees compared to peers
  • Undergraduate classes with fewer than 30 students
  • Undergraduate degrees in high demand fields
  • Undergraduate financial aid awards
  • Undergraduates per professional academic advisor by college
  • Unrestricted reserves as percentage of operating budget
  • University students studying abroad headcount
  • Yellow bus on-time performance

  
  

• KPI Examples for Finance and Insurance

• 
  

• FINANCE

  • Accounting costs
  • Accounts payable
  • Accounts payable turnover
  • Asset turnover rate
  • Average sum deposited in new deposit accounts
  • Average value of past due loans
  • Cash conversion cycle (CCC)
  • Cash dividends paid
  • Cash flow return on investments (CFROI)
  • Common stock equity
  • Cost of goods sold (COGS)
  • Cost per hour per lawyer (in-house)
  • Creditor days
  • Cumulative annual growth rate (CAGR)
  • Cycle time to perform periodic close
  • Cycle time to resolve an invoice error
  • Days payable
  • Debt-to-asset ratio
  • Debtor days
  • Direct costs
  • Earnings per share (EPS)
  • EBIT
  • EBITDA
  • Economic value added
  • Enterprise value/takeover value
  • Fixed costs
  • Gross margin on managed assets
  • Gross profit
  • Gross profit margin
  • Indirect costs
  • Interest expense
  • Interest on net worth
  • Invoicing processing costs
  • Labor and management cost
  • Labor and management earnings
  • Legal staff per size of revenue
  • Long-term debt
  • Marginal costs
  • Market share
  • Net change in cash
  • Net interest margin
  • Net new money
  • Net profit
  • Net profit margin
  • Number of budget deviations
  • Number of invoices outstanding
  • Number of past due loans
  • Operating income
  • Operating leverage
  • Operating margin
  • Operating profit margin
  • Other current liabilities
  • Other noncurrent liabilities
  • Percentage of accuracy of periodic financial reports
  • Percentage of effectiveness in payables management
  • Percentage of budget deviation relative to total budget
  • Percentage of electronic invoices
  • Percentage of financial reports issued on time
  • Percentage of invoices requiring special payment
  • Percentage of invoices under query
  • Percentage of legal budget spent outside
  • Percentage of low-value invoices
  • Percentage of payable invoices without purchase order
  • Preferred stock equity
  • Product turnover ratio
  • Profit
  • Profit loss due to theft
  • Profit margin
  • Profit per product
  • Quick ratio
  • Rate of return on assets
  • Rate of return on equity
  • Return on assets
  • Return on capital employed (ROCE)
  • Return on investment (ROI)
  • Return to equity
  • Revenue
  • Revenue per employee
  • Sales per share
  • Same store sales
  • Selling general and administrative (SG&A) expenses
  • Share price
  • Shares outstanding
  • Sharpe ratio
  • Short-term debt
  • Sortino ratio
  • Systems cost of payroll process as a percentage of total payroll cost
  • Tier 1 capital
  • Total assets
  • Total current liabilities
  • Total equity
  • Total legal spending as a percentage of revenue
  • Total liabilities
  • Total of uninvested funds
  • Total quantity of new deposit accounts
  • Total sum deposited in new deposit accounts
  • Total value of past due loans
  • Variable costs

  INSURANCE

  • Average insurance policy size
  • Claims
  • Combined cost and claims ratio
  • Combined ratio
  • Current premium versus loss
  • Earned premium
  • Expense ratio
  • Expenses
  • Exposure
  • Loss adjustment expenses (LAE)
  • Loss ratio
  • Number of days open of insurance claims
  • Number of new insurance policies
  • Previous premium versus loss
  • Underwriting speed of insurances
  • Written premium

  
  

• KPI Examples for Government & Public Administration

• 
  

• ECONOMIC DEVELOPMENT

  • Amount of new retail square footage
  • Average number of business days before reported graffiti is removed
  • Cost per animal sterilized
  • Cost per person trained in workforce development
  • Cost per sheltered animal
  • Cost per youth placed in summer youth employment jobs
  • Development of county-wide infrastructure, land supply, and affordable housing plan within one year, plan implementation and schedule adherence thereafter
  • Dropout rate of high school students
  • Health and human services
  • Housing affordability index/percentage of households that can afford a median-priced home
  • Net loss of agricultural or environmentally sensitive areas
  • Number of affordable mortgages financed for eligible low and moderate income families
  • Number of childcare facilities in areas of need
  • Number of childcare facilities with national accreditation
  • Number of economic development inquiries received
  • Number of emerging technology projects
  • Number of existing and startup businesses and agencies trained by the city or county per year that remain in business after two years
  • Number of jobs created in the community from economic and community development projects
  • Number of loans to low and moderate income persons closed per year
  • Number of low-income infants, toddlers, and preschoolers participating in early childhood development services (versus waiting list)
  • Number of new assisted living units in public housing
  • Number of new businesses related to incentives/coordinated efforts to promote growth in targeted industries
  • Number of new incubated businesses that survive at least two years
  • Number of special projects completed
  • Number of successful placements of training program participants in employment within three years
  • Number of volunteer hours
  • Number of youth participating in after-school / gap-time programming
  • Number of youths participating in employment and entrepreneurship programs
  • Per capita income
  • Percentage annual increase in new dollars generated for economic development programs
  • Percentage increase in graduation rare
  • Percentage of businesses trained and subsequently receiving funding
  • Percentage of children with insurance
  • Percentage of people with disabilities satisfied or very satisfied with service access
  • Percentage of residents satisfied with community involvement process with economic development
  • Percentage of residents with increased access to primary and specialty medical care
  • Percentage of sheltered animals adopted
  • Percentage of youth with improved academic performance
  • Percentage increase in the number of affordable and special needs housing
  • Percentage of businesses satisfied or very satisfied with the city/county's business processes
  • Percentage of customers of the health and human services area satisfied or very satisfied with service delivery and customer care
  • Percentage of participants who report they learned something that will help them start a business
  • Percentage of survey respondents earning less than $25,000 per year that rate the city/county's health and human services as good or very good
  • Percentage of survey respondents that agree the city or county government effectively develops low-income/poor areas
  • Percentage of users of health and human services satisfied or very satisfied with transit access to health care
  • Reduced percentage rate of uninsured in the city/county
  • Sick leave hours used per 1,000 hours
  • Total infant mortality rate per 1,000 live births
  • Total mortality rate (all causes) per 100,000
  • Unemployment rate

  NEIGHBORHOOD AND UNINCORPORATED AREA MUNICIPAL SERVICES

  • Cost per document released
  • Net loss of agricultural designated lands outside the urban development boundary (UDB) or environmentally sensitive lands
  • Number of infill development and infill housing units and infill redevelopment projects per year (completed)
  • Number of renters assisted
  • Percentage of lease payments that will be on time
  • Percentage of tree canopy increase
  • Percentage of general/nuisance complaints responded to within 48 hours
  • Percentage of nuisance incidents remediated within predefined timeframes
  • Percentage of residents and businesses aware of critical knowledge factors of code compliance
  • Percentage of residents satisfied with information delivery systems
  • Percentage of roadways and rights-of-way cleaned and well maintained
  • Percentage of survey respondents that agree the city or county employees that helped them went the extra mile to get their issue heard and resolved
  • Percentage of survey respondents that rate flooding as a minor or major problem in their neighborhood
  • Percentage of survey respondents that rate the development and land use/zoning in their neighborhood as good or very good
  • Percentage of survey respondents that rate the drinking water quality and sewer service as good or very good
  • Percentage of survey respondents that rate the quality of roadways and road signs in city or county as good or very good
  • Percentage of survey respondents that were satisfied with their last contact with city or county personnel
  • Secret shopper rating for employee customer service
  • Total square feet of facilities

  PUBLIC SAFETY

  • Average fire rescue response time from time dispatch receives life-threatening call from 911 and/ or percentage of total fire calls with a response time under eight minutes from call entry to arrival and/or emergency services average response time from public safety answering point (PSAP) to arrival
  • Cost per park safety enforcement action on park land
  • Development and implementation of a comprehensive plan for homeland security
  • Development of a comprehensive plan for homeland security
  • Number of licensed pets
  • Number of public emergency shelters
  • Number of abandoned vehicles investigated
  • Number of collisions related to pursuits
  • Number of first responders trained and equipped for an emergency event
  • Number of patrol hours in neighborhoods
  • Number of pedestrian/bicycle collisions per 100,000 population
  • Number of requests for special operations support
  • Number of service call responses annually
  • Percentage increase in number of volunteers
  • Percentage increase in use of non-lethal technology
  • Percentage of citizens that state they feel safe in parks and recreation facilities
  • Percentage reduction in drug-related incidents
  • Percentage reduction in juvenile crime rates
  • Percentage reduction in non-emergency calls into the 911 system
  • Percentage of survey respondents who generally find police officers and traffic enforcement officers to be friendly and approachable safety services
  • Percentage of survey respondents that rate crime in their neighborhood as a minor or major problem
  • Percentage reduction in property loss rate
  • Police emergency average response time (minutes)
  • Rate of reinstitutionalization of offenders processed through the Juvenile Evaluation Center
  • Rate of traffic fatalities per 100,000 population

  RECREATION AND CULTURE

  • Average cost per daily servicing acre
  • Average safety rating for pools
  • Cost per estimated arts center services participant hour
  • Cost per estimated museum participant hour
  • Cost per participant hour in senior services
  • Cost per public event
  • Increase in the number of collaborative programs and participants with educational institutions
  • Number of acres of natural areas restored and number of acres maintained
  • Number of adult sports teams
  • Number of attendees at recreational, cultural, and library facilities, programs and services
  • Number of cultural, recreational, and libraries collaboration projects per year
  • Number of cultural, recreational, and library programs available for the elderly and people with disabilities
  • Number of developed park acreage
  • Number of estimated arts center services participant hours
  • Number of estimated participant hours in after-school programs
  • Number of meals served to seniors
  • Number of public art contracts completed
  • Number of residents satisfied or very satisfied with availability of open or green spaces
  • Number of residents satisfied or very satisfied with availability of facilities
  • Park acres per capita
  • Percentage of free programs offered
  • Percentage of library district residents within four miles (or 25 minutes) of a library
  • Percentage of organizations and artists satisfied or very satisfied with the city or county gram application process
  • Percentage of participants satisfied or very satisfied with availability of quality lifelong learning programs
  • Percentage of survey respondents that rate the city or county's library services as good or very good
  • Percentage of survey respondents that rate the city or county's recreational and cultural activities as good or very good
  • Quality rating of residents and visitors for cultural, recreational, and library facilities and places
  • Recreation and culture dollars available through all sources of funding, including existing and new sources
  • Resident ratings of the appearance of recreational, cultural, and library facilities
  • Resident ratings of the range of parks and recreation activities
  • Total audience served through public events

  TRANSPORTATION

  • Achievement of all major milestones timelines in the city or county's transportation plan
  • Annual percentage change of parking operations expense
  • Average commute times to work in minutes
  • Average dollar value per central purchasing office purchase order
  • Average number of days between invoice date and date of check disbursement
  • Bond ratings
  • Calendar days from requisition to purchase order
  • Cost of government - Dollars per capita and per capita by category
  • Daily bus and rail boardings
  • Dollar amount of purchases made that meet sustainability guidelines
  • Dollar cost per accounts payable transaction
  • Enabling strategies - Budgets and finance
  • Implementation of 24-hour rail and bus operations
  • National customer satisfaction ranking for the airport
  • Average work-trip vehicle occupancy
  • Compliance percentage with local tax collection
  • Percentage of public transit trips taken
  • Number of visitors to county transit websites
  • Customer satisfaction ranking for the seaport
  • National customer satisfaction ranking for the airport
  • Negotiated contract savings (dollars saved)
  • Net parking income/loss
  • Number (and percentage) of facilities meeting regulatory requirements
  • Number of audits and special projects completed
  • Number of parking tickets issued
  • Number of payment transactions processed for departments
  • Number of projects managed
  • Number of purchases made city/countywide by central purchasing office
  • Number of residents satisfied or very satisfied with the implementation of the city/county's transportation plan
  • Percentage of audit recommendations "concurred with" by management
  • Percentage of cash reserves
  • Percentage of strategic plans outcomes supported by business plans
  • Percentage of traffic signals synchronized and optimized
  • Percentage of vendor solicitations successfully awarded without delay due to rebids or protests
  • Percentage of community satisfied with value of city or county's services for tax dollars paid
  • Percentage of employees rating the city or county or state as a good place to work
  • Percentage of internal users satisfied with procurement timeliness quality, and overall service
  • Percentage of survey respondents that rate the cleanliness of buses and train cars as good or very good
  • Percentage of survey respondents that rate the congestion on the roadways in their neighborhood as a minor or major problem
  • Percentage of survey respondents that rate the convenience of the city or county bus routes as good or very good
  • Percentage of survey respondents that rate the ease of transportation to and from the airport and seaport as good or very good
  • Planned frequency of transit service during peak and non-peak hours
  • Rate of schedule adherence for bus and rail service
  • Receiving Government Finance Officers Association (GFOA) distinguished budget award
  • Total number of aviation passengers

  ENABLING STRATEGIES GOVERNMENT OPERATIONS

  • Cost per page view on the city or county website
  • Dollars saved through IT investments
  • Electronic access to services and information, and percentage of survey respondents that agree that it is easy to find what they need or want on the city or county website
  • Fleet costs (acquisition, operating, resale value) within prescribed industry standards and percentage of department users satisfied with quality and timeliness of fleet management services
  • Increase number of employees rating the city or county as a good place to work
  • Number of page views on the city or county website per capita
  • Number of planned media events (includes news conferences)
  • One hundred percent of financial reports filed timely and accurately in compliance with the law
  • Percentage of city or county employees aware of their component of performance targets
  • Percentage of city or county employees aware of their importance to city or county’s values and priorities
  • Percentage of IT projects completed on time, within budget
  • Percentage of IT routine problems solved within 24 hours
  • Percentage of (facility) projects completed within budget and on time
  • Percentage of accuracy between votes cast and votes reported
  • Percentage of customers familiar with city or county sources of information
  • Percentage of internal customers and residents satisfied with aesthetics of city or county facilities
  • Percentage of residents with a positive image of city or county government
  • Percentage of users (residents, visitors, employees, etc.) satisfied with city or county services
  • Reduced staff turnover
  • Satisfaction ratings from service delivery departments
  • Value of corporate-initiated media coverage
  • Voter satisfaction with process

  
  

• KPI Examples for Healthcare and Social Assistance

• 
  
• • Accounts receivable
  • Accounts payable and accrued expenses
  • Admissions in-patient
  • Average length of stay (ALOS)
  • Average length of stay (ALOS) for top ten diagnoses
  • Assets in current period
  • Assets in prior period
  • Average age of plant
  • Average age of workforce
  • Average daily and monthly census
  • Average hourly rate
  • Average length of stay
  • Average payment period (days)
  • Average time to fill positions
  • Backorder percentage
  • Bad debt as percentage of net revenue
  • Bottleneck areas
  • Break even
  • Capital expenditure growth rate
  • Case mix index
  • Cash and equivalents
  • Cash collected versus target
  • Cash on hand (days)
  • Communication effectiveness
  • Contract negotiation schedule
  • Cost per discharge
  • Current asset turnover
  • Current ratio
  • Days in accounts receivable
  • Debt service coverage ratio
  • Depredation funds
  • Depreciation rate
  • Discharge process time
  • Discharges in-patient
  • Discounts trends, revenue, and margin by payer class
  • Due to third parties
  • Education funds
  • Emergency visits outpatient
  • Encounters outpatient
  • Equity financing
  • Errors related to procedure/treatment or test
  • Events, number of events by type and department
  • Expenses per physician FTE
  • Fixed asset turnover
  • Free operating cash flow to assets
  • Free operating cash flow to revenue
  • FTE per occupied bed
  • FTEs per adjusted occupied bed
  • Growth rate on equity
  • Hazardous materials usage
  • Informed about delays
  • Inventory ratio
  • Inventory turnover
  • Investments at market value
  • Long-term debt
  • Long-term investments
  • Maintained bed occupancy
  • Mean wait time in emergency department (ED) for hospital bed
  • Medication errors, number of errors per 1,000 treatments
  • Medication errors, number of errors per month/year
  • Month to date (MTD) bad debt
  • MTD cash collected
  • MTD revenue
  • Net assets
  • Net income
  • Net income to patient revenue
  • Net revenue
  • Non-operating gains
  • Number of new hires per day
  • Nurse turnover rate
  • Nurse vacancy rate
  • Nurses attention to needs
  • Operating income
  • Operating profit margin
  • Operating revenues
  • Other liabilities
  • Outside labor as a percentage of total
  • Over or under consumption of service lines by payer types
  • Overtime costs
  • Paid time off costs at business unit level
  • Paid time off costs at department level
  • Patient accounts receivable
  • Patient care hours
  • Patient complaint rate
  • Patient satisfaction
  • Patient wait times, by process step
  • Patient/staff ratios
  • Patients who leave without being seen (by day, by time)
  • Percentage of capital expenses
  • Percentage of cash flow to total debt
  • Percentage of cash flow to total liabilities
  • Percentage of charitable revenue
  • Percentage of debt to capitalization
  • Percentage of fixed asset financing
  • Percentage of in-patient capitated revenue
  • Percentage of in-patient commercial revenue
  • Percentage of in-patient HMO revenue
  • Percentage of in-patient revenue
  • Percentage of in-patient self-pay revenue
  • Percentage of Medicaid revenue
  • Percentage of operating margin
  • Percentage of outpatient Medicare revenue
  • Percentage of outpatient revenue
  • Percentage of part-time FTEs of total FTEs
  • Percentage of voluntary staff turnover
  • Physician FTE
  • Physician productivity (relative value units)
  • Purchase order (PO) quantity ordered by department
  • Property, plant, and equipment
  • Readmission rates
  • Replacement viability
  • Reported income index
  • Reserve levels
  • Return on equity
  • Return to vendor
  • Revenue by contract type
  • Revenue per physician FTE
  • Risk-adjusted mortality
  • Salaries and benefits
  • Satisfaction with physical examination
  • Satisfaction with physician
  • Service line utilization and trends by payer type
  • Service provision
  • Short-term investments
  • Skill levels
  • Source of hires versus cost
  • Staff turnover
  • Staff turnover by job code
  • Staff turnover by location
  • Staffing cost trend
  • Staffing-related quality indicators
  • Supplies and services
  • Surgical cases in-patient
  • Surgical cases out-patient
  • Times interest earned
  • Total admissions
  • Total cash and investments
  • Total compensation per FTE
  • Total discharge
  • Total income
  • Total liabilities
  • Total margin
  • Total operating expenses
  • Total paid time off of FTEs
  • Total PO dollar amount
  • Total revenue per FTE
  • Total salary per FTE
  • Total travel distance
  • Total turnover per manager
  • Total turnover per tenure
  • Total unrestricted funds
  • Turnover of clinical and non-clinical staff
  • Uncompensated care
  • Unit efficiency
  • Unrealized gains
  • Vacancy rate
  • Weekly payroll
  • Working capital absorption
  • Working capital for current accounting period

  
  

• KPI Examples for Information

• 
  
• • Annual cost per reading
  • Average cost per article
  • Average cost per subscription
  • Average dollars per email sent or delivered
  • Average order size
  • Average quarter-hour audience
  • Average revenue per subscription
  • Average time spent listening per user (day/week/month/year)
  • Bounce rate
  • Click to open rate (number of unique clicks/ number of unique opens)
  • Click-through rate
  • Click-through rate (CTR)
  • Conversion rate
  • Conversion rate (number of actions/unique click-throughs)
  • Conversion rates
  • Cost per broadcast hour
  • Cost per consumed (by viewers/listeners) hour
  • Cost per customer
  • Cost per lead, prospect, or referral
  • Cost per production hour
  • Cost per viewer/listener
  • Cost per visitor
  • Cost per action (CPA)
  • Cumulative audience sessions
  • Delivery rate (emails sent, bounces)
  • Gross ratings points
  • Life cycle cost per reading
  • Local content as a percentage of all content
  • Net subscribers (number of subscribers plus new subscribers) -(bounces + unsubscribes)
  • Number of broadcast hours per day/week/month/year
  • Number of or percentage of spam complaints
  • Number of orders, transactions, downloads, or actions
  • Open rate
  • Output per employee (unique first run broadcast hours by employee for each medium)
  • Pay per click (PPC)
  • Pay per lead (PPL)
  • Pay per sale (PPS)
  • Percentage of broadcast hours by genre (news/sports/entertainment, etc.)
  • Percentage of overhead (non-direct operating costs) against total expenditure
  • Percentage of orders, transactions, downloads, or actions of emails sent or delivered
  • Percentage unique clicks on a specific recurring Iink(s)
  • Referral rate ("send-to-a-friend")
  • Site stickiness (number of pages visited per visit)
  • Subscriber retention (number of subscribers, bounces, unsubscribes/number of subscribers)
  • Total cost per subscription
  • Total listener hours (day/week/month/year)
  • Total revenue
  • Total revenue per subscription
  • Unique visitors (total number of unique visitors per day/week/month)
  • Unsubscribe rate
  • Utilization of production resources
  • Value per visitor
  • Viewers/listeners for each medium as a percentage of total population
  • Website actions (number of visits to a specific web page or pages)
  • Website traffic (total page impressions per day/week/month)

  
  

• KPI Examples for Management of Companies and Enterprises

• 
  
• • Capital ratio
  • Cash position by currency
  • Cash-to-assets ratio
  • Cash-to-liabilities ratio
  • Cash-to-working capital ratio
  • Cash utilization
  • Change in residual risk levels
  • Comparative revenues across offices/subsidiaries/departments
  • Consolidated payments
  • Consolidated profits
  • Consolidated receivables
  • Consolidated revenues
  • Consolidated settlements
  • Cost of equity
  • Cost to hire management talent
  • Cost-to-income ratio - By business
  • Cost-to-income ratio - Consolidated
  • Days in accounts payable
  • Days in accounts receivable
  • Earnings per share
  • Economic profit
  • Effectiveness of the risk management practices that are controlling material risks
  • Employee engagement (as measured through survey participation)
  • Employee movement (such as time in position, transfers, and promotions)
  • External funds under management
  • Holding company cash flow
  • Internal rare of return on new business information technology (IT) spending per employee
  • Level of inherent risk
  • Long-term debt
  • Net profit growth
  • New business profit
  • Operating profit on long-term investments
  • Profit diversification
  • Return on equity
  • Revenue mix
  • Short-term debt
  • Time to hire management talent
  • Total cash deposits

  
  

• KPI Examples for Manufacturing

• 
  
• • Asset utilization
  • Availability
  • Avoided cost
  • Capacity utilization
  • Comparative analytics for products, plants, divisions, companies
  • Compliance rates (for government regulations, etc.)
  • Customer complaints
  • Customer satisfaction
  • Cycle time
  • Demand forecasting
  • Faults detected prior to failure
  • First aid visits
  • First time through
  • Forecasts of production quantities, etc.
  • Increase/decrease in plant downtime
  • Industry benchmark performance
  • Integration capabilities
  • Interaction level Inventory
  • Job, product costing
  • Labor as a percentage of cost
  • Labor usage, costs-direct and indirect
  • Machine modules reuse
  • Maintenance cost per unit
  • Manufacturing cost per unit
  • Material costing, usage
  • Mean time between failure (MTBF)
  • Mean time to repair
  • Number of production assignments completed in time
  • On-time orders
  • On-time shipping
  • Open orders
  • Overall equipment effectiveness
  • Overall production efficiency of a department, plant, or division
  • Overtime as a percentage of total hours
  • Percentage decrease in inventory carrying costs
  • Percentage decrease in production-to-market lead-time
  • Percentage decrease in scrap and rework costs
  • Percentage decrease in standard production hours
  • Percentage increase in productivity
  • Percentage increase in revenues
  • Percentage material cost reduction
  • Percentage reduction in defect rates
  • Percentage reduction in downtime
  • Percentage reduction in inventory levels
  • Percentage reduction in manufacturing lead times
  • Percentage savings in costs
  • Percentage savings in inventory costs
  • Percentage savings in labor costs
  • Percentage savings in transportation costs
  • Planned work to total work ratio
  • Predictive maintenance monitoring (maintenance events per cycle)
  • Process capability
  • Productivity
  • Quality improvement (first-pass yield)
  • Quality tracking-six sigma
  • Reduced time to productivity
  • Reduction in penalties
  • Savings in inventory carrying costs
  • Scheduled production
  • Spend analytics
  • Storehouse stock effectiveness
  • Supplier trending
  • Time from order to shipment
  • Time on floor to be packed
  • Unplanned capacity expenditure
  • Unused capacity expenditures
  • Utilization
  • Waste ration reduction
  • Work-in-process (WIP)

  
  

• KPI Examples for Mining

• 
  
• • Average bucket weight
  • Average fuel use per machine
  • Average loading time
  • Average number of dumps per hour/day/week/month
  • Average number of loads per hour/day/week/month
  • Average payload
  • Average swing time
  • Cash operating costs per barrel of oil equivalent (BOE)
  • Change time (time between cycles)
  • Cycle distance
  • Cycle time
  • Degree of purity and physical characteristics
  • Dilution of ore
  • Dump time
  • Efficiency of metallurgical recovery
  • Empty stop time
  • Empty travel distance
  • Empty travel time
  • Exploration costs
  • Finding and development costs
  • Flitch
  • Fuel (e.g. , gallons/hour)
  • Gross refining margin
  • Incident rate (accidents, etc.) per x hours
  • Lifting costs
  • Loaded stop time
  • Loaded travel distance
  • Loaded travel time
  • Loading time
  • Lost time incident frequency rate
  • Number of equipment failures per day/week/month/year)
  • Number of holes drilled per day/week/month/year
  • Oil reserves
  • Payload
  • Payload correction (difference between raw and corrected payload)
  • Percent (metal, etc.) in ore
  • Percentage uptime (of equipment, plant, etc.)
  • Product into shed
  • Production cost per barrel
  • Production rate-bank cubic meter (BCM)/ hour (cubic meters of material moved per hour)
  • Raw material substitution rate (percentage)
  • Raw payload
  • Reserve and resource replacement (percentage)
  • Tons of ore feed
  • Tons per hour
  • Tons per load
  • Total minutes lost per shift due to breaks
  • Unit variable costs
  • Utilization
  • Waste per ton
  • Waste recycling (e.g., tons per time unit)
  • Waste volume

  
  

• KPI Examples for Other Services (except public administration)

• 
  
• • Average employee utilization
  • Average equipment utilization
  • Average number of days required to repair the item
  • Average number of no· shows per week/month
  • Average number of training hours per employee
  • Average repair cost
  • Average repair time
  • Average revenue per service delivered
  • Cash collected
  • Collections
  • Average training cost per employee
  • Client retention rate
  • Customer turnover rate
  • Daily goals
  • Employee turnover rate
  • Gross profit on pans/material sold
  • Idle time
  • Material cost per service hour sold
  • Mean service request completion time
  • Time to dose distribution (by time buckets)
  • Net profit as a percentage of labor sold
  • Number of apprentices and organized members certified
  • Number of apprentices and organized members needed to meet requirements
  • Number of open service requests
  • Number of prospective clients converted to clients
  • Number of service requests resolved during the period
  • Number of training courses conducted per month/quarter/year
  • Service level details
  • Percentage of members participating in approved programs
  • Percentage of total members participating in meetings
  • Period service renewal rate
  • Period service renewals booked value/period service renewals value
  • Period service renewals value
  • Repair order mean time to repair
  • Repair order past due percentage
  • Sales per employee
  • Sales per estimator
  • Sales per production square foot
  • Sales per production technician
  • Service booked to renewal ratio
  • Service contracts activated new business value
  • Service Contracts activated renewals value
  • Service contracts expired value
  • Service contracts terminated billed value
  • Service contracts terminated remaining value
  • Service department throughput (per day/week/month)
  • Service level
  • Service renewal past due percentage
  • Service renewals booked value
  • Service renewals forecast
  • Service renewals uplift
  • Service request backlog
  • Service request closed activity
  • Service request escalated backlog percentage
  • Service request reopened activity
  • Service request unassigned backlog percentage
  • Target membership growth
  • Total pans/material cost as a percentage of total sales
  • Unresolved escalated backlog percentage
  • Unresolved service request backlog
  • Unresolved unassigned backlog percentage
  • Weekly team targets

  
  

• KPI Examples for Professional, Scientific, and Technical Services

• 
  
• • Annual billable utilization percentage
  • Availability
  • Availability (excluding planned downtime)
  • Average percentage of CPU utilization
  • Average percentage of memory utilization
  • Average hourly fee
  • Average number of virtual images per administrator
  • Cost of managing processes
  • Cost of service delivery
  • Deviation of planned budget for SLA
  • Downtime
  • Mean time to repair (MTTR)
  • Mean time between failure (MTBF)
  • Number of defects found over period of time
  • Number of outstanding actions of last SLA review
  • Percentage of application development work outsourced
  • Percentage of bugs found in-house
  • Percentage of consultants generating revenue
  • Percentage of consulting hours that generate revenue
  • Percentage of email spam messages stopped/detected
  • Percentage of outage due to changes (planned unavailability)
  • Percentage of outage due to incidents (unplanned unavailability)
  • Percentage of service requests resolved within an agreed-on period of time
  • Percentage of systems covered by antivirus/antispyware software
  • Percentage of systems with latest antivirus/antispyware signatures
  • Percentage of time lost redeveloping applications as a result of source code loss
  • Percentage of time sheets in need of correction/validation
  • Percentage of unit tests covering software code
  • Percentage of user requested features
  • Profit per project
  • Quality assurance personnel as percentage of the number of application developers
  • Software development quality
  • System usability scale
  • Time ratio for design to development work
  • Time-to-market of changes to existing products/services
  • Total service delivery penalties paid
  • Unit costs of IT services
  • Workforce turnover rate

  
  

• KPI Examples for Real Estate and Rental and Leasing

• 
  

• REALTOR WEBSITE

  • Conversation rate (i.e., take rate) - Number of conversations over number of website visits
  • Top conversion page exit - The page where website visitors change their minds and exit your website.
  • Traffic source percentage - Website visits referred by

  REAL ESTATE OFFICE

  • Advertising and promotion
  • Average commission per sale
  • Average commission per salesperson
  • Commission margin
  • Net profit
  • Office cost (telephone, fax, and other office cost)
  • Rent cost of premises
  • Sold homes per available inventory ratio
  • Total income
  • Wages and salaries (including commissions and vehicle allowances)
  • Year-to-year variance on average sold price
  • Year-to-year variance on dollar volume of sold listings
  • Year-to-year variance on sold average dollar per square foot

  COMMERCIAL PROPERTY MANAGEMENT

  • Annual return on investment in percentage
  • Construction/purchaser rate - New constructed or purchased units over time
  • Cost per square foot
  • Equity value growth in percentage
  • Lease events coverage ratio - Number of lease inquiries over number of available units
  • Management efficiency - Number of leased spaces over number of staff
  • Market share growth
  • Monthly return on investment as percentage
  • Occupancy cost - Cost per occupied unit
  • Operation cost to rent income ratio
  • Percentage of rent collected
  • Price to income as percentage
  • Profitability per square foot
  • Real estate demand growth - Market rental demands
  • Rented space usage quality - Average number of tenant visits over rented space
  • Renting cost - Renting cost per square foot
  • Renting return on investment - Rent income over cost
  • Revenue per square foot
  • Risk metrics as percentage
  • Total property management income per property manager
  • Usage efficiency - Available renting square feet over number of staff
  • Utilization (vacancy) rate - Rented square feet over total square feet, or rented units over total units

  REAL ESTATE INVESTOR

  • Average gross multiplier for portfolio
  • Cost per square foot to value per square foot ratio
  • Equity to value ratio
  • Gross multiplier per commercial property
  • LTV (loan to value) ratio per property
  • Mortgage rate index
  • Overall LTV (loan to value) ratio for portfolio
  • Price per square foot to value per square foot ratio
  • Profitability per square foot
  • Property value growth (market trend)
  • Purchase price-to-appraisal value ratio
  • Rental value growth rate ROI (return on investment)

  
  

• KPI Examples for Retail Trade

• 
  

• PRODUCT SALES

  • Average inventory
  • Cost of goods sold
  • Gross profit budget percentage
  • Sales budget percentage
  • Discount
  • Gross profit
  • Gross profit and prognostics
  • Gross profit and prognostics percentage
  • Gross profit budget
  • Gross profit campaign
  • Gross profit percentage KPI
  • Gross profit prognostics
  • Gross profit prognostics percentage
  • Gross profit standard
  • Gross profit year to date
  • Number of stores
  • Product quantity
  • Sales
  • Sales and prognostics
  • Sales campaign
  • Sales growth period
  • Sales growth year
  • Sales growth year by week
  • Sales prognostics
  • Sales standard
  • Sales trend percentage KPI
  • Sales value-added tax (VAT)
  • Sales view
  • Sales view year-to-date
  • Share prognostics
  • Time range

  FINANCE AND ACCOUNTING

  • Accounts payable turnover
  • Accounts receivable turnover days
  • Acid test ratio
  • Administrative cost percentage
  • Break-even (dollars)
  • Cash conversion cycle
  • Contribution margin
  • Cost of goods
  • Cost of goods sold
  • Current ratio
  • Ending inventory at retail
  • Gross margin
  • Gross margin return on investment
  • Initial mark-up
  • Interest cost percentage
  • Inventory turnover
  • Maintained mark-up (dollars)
  • Margin percentage
  • Mark-up percentage
  • Net receipts
  • Net sales
  • Retail price
  • Return on capital invested
  • Sales per square foot
  • Stock turnover days
  • Total asset sales ratio
  • Turnover

  SALARY

  • Real absence hours
  • Real absence share
  • Real GPWH
  • Real overtime hours
  • Real overtime share
  • Real TWH
  • Real working hours
  • Salary
  • Salary amount
  • Salary amount exchange currency
  • Salary hours
  • Salary turnover share

  SALARY TARGETS

  • Real absence hours
  • Real GP work hours
  • Real total work hours
  • Salary absence percentage
  • Salary GP work hour
  • Salary overtime percentage
  • Salary target absence percentage
  • Salary target GP work hour
  • Salary target overtime percentage
  • Salary target turnover percentage
  • Salary target work hour
  • Salary turnover percentage

  HOURLY SALES

  • Customers per hour
  • Discount
  • Gross profit
  • Items
  • Margin per customer
  • Number of customers
  • Sales growth year
  • Sales growth year percentage
  • Sales last year
  • Sales per customer
  • Sales trend percentage
  • Sales view
  • Total number of stores

  BUDGET SALES

  • Budget gross profit
  • Budget number of customers
  • Budget sales
  • Customers
  • Discount
  • Gross profit
  • Items
  • Sales
  • Sales exchange currency
  • Sales VAT

  PAYMENT WITH POINT-OF-SALE (POS) STATISTICS

  • Amount
  • Amount exchange currency
  • Items
  • Number of customers
  • Number of items
  • Refund amount
  • Refund count
  • Sales income VAT
  • Time range
  • Transaction cancel amount
  • Transaction cancel count
  • Transaction cancel percentage
  • Void amount
  • Void count
  • Void percentage
  • Zero sale count

  HOURLY PRODUCT SALES

  • Gross profit percentage
  • Item discount
  • Item gross profit
  • Item quantity
  • Item sales
  • Item sales exchange currency
  • Item sales VAT
  • Items sold

  
  

• KPI Examples for Transportation and Warehousing

• 
  
• • Annualized inventory turns
  • Annualized cost of goods sold (COGS)/average daily inventory value
  • Backlog value
  • Value of open, not yet fulfilled, booked order lines
  • Book to fulfill ratio
  • Booked order value/fulfilled value
  • Book to ship days
  • Average of shipped date - Firm date (booked date used if no firmed date)
  • Booked order value
  • Booked order line value (not including returns)
  • Claims percentage for freight costs
  • Customer order promised cycle time
  • Defects per million opportunities
  • Inventory months of supply
  • On-time line count
  • On-time pickups
  • Pick exceptions rate
  • Percentage of picks with exceptions
  • Pick release to ship
  • Planned inventory turns
  • Planned cost of goods sold/planned inventory value
  • Planned margin
  • Planned revenue - Planned costs
  • Planned margin percentage
  • Planned margin/planned revenue
  • Planned on-time shipment
  • Planned service level (percentage of shipments shipped on time)
  • Planned resource utilization
  • Planned resource usage
  • Product revenue
  • Product sales revenue (not including service) recognized in selected period (based on AR invoice lines)
  • Product revenue backlog
  • Value of booked order lines less returns plus deferred revenue backlog (invoiced but not recognized)
  • Production value
  • Value of work-in-process (WIP) completions into inventory
  • Production to plan rate
  • Production standard value/planned standard value
  • Receipt to put-away
  • Time elapsed from pick release to ship confirm
  • Time elapsed from receipt
  • Transit time

  
  

• KPI Examples for Utilities

• 
  
• • Annual labor cost per device
  • Average cost per job category
  • Average cost per megawatt produced
  • Average labor hours per device per year
  • Average maintenance cost per mile of pipe/line/cable
  • Average number of days each work order is past due
  • Average number of labor hours to complete a maintenance task
  • Average response time to fix breaks
  • Average revenue per megawatt produced
  • Average time to settle a rate case
  • Consumption analyzed by units consumed and target reduction achieved
  • Crew productivity
  • Drinking water quality - Percentage of water tests that meet regulatory standards
  • Electrical grid load
  • Equipment failure rate
  • Equipment unavailability, hours per year - Planned maintenance
  • Equipment unavailability, hours per year - Sustained fault
  • Equipment unavailability, hours per year - Temporary fault
  • Equipment unavailability, hours per year - Unplanned maintenance
  • Maintenance backlog
  • Maintenance cost as a percentage of manufacturing cost
  • Maintenance technician's skill level improvement, year over-year
  • Mean time to repair
  • Number of complaints received by type
  • Number of customers who were cut off due to violations of regulations
  • Number of disconnections
  • Number of pending work orders
  • Number of power failures per year
  • Number of reported gas leakages per 1,000 households
  • Number of sewage blockages per month/year
  • Number of staff per 1,000 customer connections
  • Number of uncontrolled sewage overflows affecting private properties
  • Outage time per event
  • Percentage of customers that would characterize their bills as accurate and timely
  • Percentage of possible power revenue billed
  • Percentage reduction in number of complaints to the local regulatory body
  • Percentage reduction in number of employee injuries
  • Percentage reduction in number of equipment failures
  • Percentage of maintenance work orders requiring rework
  • Percentage of man-hours used for proactive work
  • Percentage of scheduled man-hours to total man-hours
  • Profit redistribution (rural electric coops)
  • Reduction in hazardous liquid spill notification time
  • Reduction or stabilization in rates (municipally owned utilities)
  • Response time to gas or water leaks
  • Sewage system reliability
  • Station unavailability - Planned maintenance
  • Station unavailability - Sustained fault
  • Station unavailability - Temporary fault
  • Total shareholder returns (investor-owned utilities)
  • Total time to complete new customer connections
  • Transformer/pump station reliability
  • Voltage deviations per year
  • Water system reliability

  
  

• KPI Examples for Wholesale Trade

• 
  
• • Dock turnaround time
  • Freight costs (minimize costs without affecting deliveries)
  • Inventory accuracy, stockouts
  • Inventory carrying costs
  • Inventory turns per year
  • Logistics costs per year
  • Low-velocity inventory comparison through sectors
  • Order fill rate and accuracy
  • Technology used to execute inventory strategies
  • Warehouse flow-through (or some measure of yard or warehouse productivity)
  • Wholesale revenue
  • Total factor productivity
  • Labor productivity
  • Return on assets
  • Profit margin
  • Debt to equity
  • Inventory turnover
  • Asset utilization
  • Collection efficiency

  
  
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Balanced Scorecard Basics

 

What is a Balanced Scorecard?

The balanced scorecard (BSC) is a strategic planning and management system. Organizations use BSCs to:

• Communicate what they are trying to accomplish
• Align the day-to-day work that everyone is doing with strategy
• Prioritize projects, products, and services
• Measure and monitor progress towards strategic targets

The name “balanced scorecard” comes from the idea of looking at strategic measures in addition to traditional financial measures to get a more “balanced” view of performance. The concept of balanced scorecard has evolved beyond the simple use of perspectives and it is now a holistic system for managing strategy. A key benefit of using a disciplined framework is that it gives organizations a way to “connect the dots” between the various components of strategic planning and management, meaning that there will be a visible connection between the projects and programs that people are working on, the measurements being used to track success (KPIs), the strategic objectives the organization is trying to accomplish, and the mission, vision, and strategy of the organization.

Who Uses the Balanced Scorecard (BSC)?

BSCs are used extensively in business and industry, government, and nonprofit organizations worldwide. More than half of major companies in the US, Europe, and Asia are using the BSC, with use growing in those areas as well as in the Middle East and Africa. A recent global study by Bain & Co listed balanced scorecard fifth on its top ten most widely used management tools around the world. BSC has also been selected by the editors of Harvard Business Review as one of the most influential business ideas of the past 75 years.

What Organizations Are Successfully Using Balanced Scorecard?

Increasingly, as balanced scorecard (BSC) concepts become more refined, we have had more inquiries asking for examples of organizations that have implemented the BSC, how the BSC applies to a particular business sector, what metrics are appropriate for different sectors, etc. This page provides a database of working balanced scorecard examples that our research has located.

By 2004 about 57% of global companies were working with the balanced scorecard (according to Bain). Much of the information in the commercial sector is proprietary, because it relates to the strategies of specific companies. Public-sector (government) organizations are usually not concerned with proprietary information, but also they may not have a mandate (or much funding) to post their management information on web sites.

Example One-Page Balanced Scorecard Strategic Plan 

The One-Page Strategic Plan illustrates how strategy and strategic elements fit together and reinforce each other. This one-page summary graphic includes vision, mission, core values, perspectives, strategic themes & results, strategic objectives, strategy map, performance measures, targets, and strategic initiatives. 

What Are Balanced Scorecard Perspectives?

The BSC suggests that we examine an organization from four different perspectives to help develop objectives, measures (KPIs), targets, and initiatives relative to those views.

• Financial (or Stewardship): views an organization’s financial performance and the use of financial resources
• Customer/Stakeholder: views organizational performance from the perspective of the customer or key stakeholders the organization is designed to serve
• Internal Process: views the quality and efficiency of an organization’s performance related to the product, services, or other key business processes
• Organizational Capacity (or Learning & Growth): views human capital, infrastructure, technology, culture, and other capacities that are key to breakthrough performance

The Four Perspectives of the Balanced Scorecard

One of the signature features of the balanced scorecard is that it looks at organizational performance from various Perspectives. Perspectives are the performance dimensions, or lenses, that put strategy in context. It takes several perspectives—usually four—to understand an organization as a system made up of elements that work together, like the gears in a clock or fine watch. Together, these elements create value, leading to customer and stakeholder satisfaction and good financial performance.

Why Does Your Organization Need Perspectives?

Drs. Robert Kaplan and David Norton found in their initial work together that too many organizations were measuring their success only from a financial point of view and that a broader, more strategic set of dimensions was needed. The success of few strategies can be measured from only one point of view. The basic four perspectives enables the organization to use a strategy map to articulate to employees how value is created by the organization.

What Balanced Scorecard Perspectives Should a Private Sector Organization Use?

The four perspectives of a traditional balanced scorecard are Financial, Customer, Internal Process, and Learning and Growth. In the Nine Steps to Success™, the original Balanced Scorecard “learning and growth” perspective has been changed to “organizational capacity”, to reflect the internal capacity building needed to improve internal processes. The four components included in the organizational capacity perspective are human capital, tools and technology, infrastructure, and governance. Learning and growth takes place throughout the whole organization and during the execution of strategy, not just in one perspective. The image below shows the value creation story through the perspectives for business / commercial sector organizations.

How Perspectives Show a Value Creation Story in Business / Commercial Organizations

What Balanced Scorecard Perspectives Should a Public Sector Organization Use?

Civilian government, defense and not-for-profit organizations are mission driven. These organizations use different value-creation logic than business and industry (profit driven) organizations. In The Institute Way, mission-driven scorecard systems reflect the unique nature and value proposition of mission-driven organizations. Perspective nomenclature needs to reflect this difference. For example, governments are not in the business of making a profit, so a “financial” perspective can be a misleading way of identifying this perspective to stakeholders. “Financial stewardship” might be more appropriate, as stewardship connotes a message of wise use of (‘taxpayers’ or ‘funders’) money and fiduciary responsibility, rather than improved profitability and shareholder value. In military organizations, other government organizations and not-for-profits, terms like “resource effectiveness” or “budget effectiveness” are commonly used. For not-for-profits, financial stewardship imparts the concept of using resources cost-effectively, something donors and funders would no doubt like to see. The image below shows the high-level value-creation story through perspectives for mission-driven organizations.

How Perspectives Show a Value Creation Story in Mission-Driven Organizations

Likewise, for the customer/stakeholder perspective in the Nine Steps Methodology (as detailed in The Institute Way), words like client, member, solider and citizen are used because they emotionally tie the management system to the people or groups served by the programs and services of these mission-oriented organizations. For business and industry scorecards, the word “customers” is traditionally used to describe this perspective.

In The Institute Way, the placement of perspectives on government and not-for-profit scorecards is differentiated. Financial should not be the top perspective for a mission-driven organization’s scorecard because financial stewardship is not the end of the value chain for that type of organization—stakeholder satisfaction is the end of the value chain. For these organizations, the value chain ends not with improved business financial results (although that’s a good thing!) but with satisfied members, citizens or other stakeholders. Putting the financial (stewardship) perspective in the second position from the top is more appropriate, as stakeholder satisfaction is derived in large part by the delivery of programs and services that are cost-effective and are judged necessary and sufficient. One client used a hybrid scorecard matrix putting the financial and customer perspectives on the top row to reinforce that both financial success and customer experience were equally important results. The Nine Steps to Success™ framework is very flexible to accommodate modifications like these and still keep scorecarding principles intact.

Can I Change the Names of the Perspectives?

The perspective names can change to fit the culture of the organization, although the underlying focus typically does not. In other words, while a public sector organization might prefer the “Stewardship” label, the focus of the perspective should remain on financial performance. Choose labels that resonate with the organization’s strategy and clearly communicate internally and externally. For example, one organization might use “People and Tools” instead of “Organizational Capacity” (or “Learning and Growth”), and another might aptly describe this perspective as “People, Knowledge and Technology”.

https://cutt.ly/A2tCvOJ

5 групп факторов для оценки привлекательности рынка

 Привлекательность отрасли — это понятие, описывающее возможность получения долгосрочного и стабильного уровня продаж и прибыли для компании в определенном рыночном сегменте. Оценка привлекательности отрасли, рынка или конкретного сегмента бизнеса проводится для: понимания перспектив развития отрасли и оценки доходов в долгосрочном периоде, оценки целесообразности входа на рынок и анализа перспектив компании в сегменте,анализа уровня рыночных рисков, а также для приоритезации направлений бизнеса (в случае, если компания оперирует на нескольких рынках).

В статье мы расскажем о наиболее часто используемых методиках анализа привлекательности отрасли и рассмотрим пять основных групп факторов и критериев привлекательности рынка.

3 универсальных метода оценки

Существует множество методик для того, чтобы провести анализ привлекательности отрасли. Приведем 3 самых распространенных метода оценки: SWOT анализ, модель конкуренции Портера и модель McKinsey/GE.

SWOT — анализ

SWOT — анализ бизнеса помогает составить сводную оценку сильных и слабых сторон компании, проанализировать угрозы и возможности для роста бизнеса в сегменте, разработать стратегии на основе имеющихся преимуществ компании и составить план защитных мероприятий для минимизации рисков

Модель Портера

Анализ 5 конкурентных сил по Портеру помогает оценить уровень конкуренции в сегменте, конкурентоспособность товара компании и проанализировать угрозы для компании со стороны рыночных факторов

Матрица McKinsey

Матрица General Electric (GE) / McKinsey помогает оценить несколько направлений бизнеса компании в двух плоскостях: привлекательность рынка и конкурентоспособность товара

Факторы привлекательности рынка

Все критерии для оценки инвестиционной привлекательности отрасли можно разделить на 5 групп:

• Первая группа показателей описывает потенциал продаж
• Вторая группа показателей описывает потенциал рынка с точки зрения спроса
• Третья группа факторов описывает условия конкуренции
• Четвертая группа факторов оценивает рыночные тренды
• Пятая группа факторов оценивает конкурентоспособность товара

Рассмотрим каждую группу факторов для оценки инвестиционной привлекательности бизнеса более подробно.

Группа 1

Данная группа критериев характеризует привлекательность рынка с точки зрения потенциала продаж в долгосрочном периоде (не менее 3 лет). К факторам данной группы относятся: емкость и темп роста рынка, доходность сегмента, уровень зрелости рынка и скорость изменений в отрасли.

Критерий привлекательности рынка	Описание
Емкость сегмента (в руб)	чем выше размер сегмента, тем выше потенциальный объем продаж на рынке
Темп роста сегмента (в %)	чем выше темп роста сегмента, тем выше возможности по наращиванию объемов продаж
Доходность сегмента (в %)	чем выше потенциальная рентабельность бизнеса в сегменте, тем выше уровень дохода компании
Зрелость рынка	чем ниже зрелость рынка, тем выше перспективы для бизнеса
Скорость изменения условий рынка	чем выше скорость изменений рыночных условий (изменение технологий, спроса, факторов конкуренции), тем выше потребность в постоянном приспособлении к новым рыночным реалиям и выше затраты на приспособление

Группа 2

Вторая группа показателей привлекательности отрасли описывает потенциал сегмента с точки зрения спроса и предпочтений потребителей. К факторам данной группы относятся: размер ЦА, пенетрация товара, частота использования, наличие скрытого спроса, лояльность потребителей, платежеспособность аудитории, эластичность и постоянность спроса на товар.

Критерий привлекательности рынка	Описание
Размер целевой аудитории (в тыс.чел)	чем выше размер аудитории, для которой предлагается товар, тем выше потенциальный объем продаж на рынке
Пенетрация товара (в %)	чем ниже % пользования товаром среди потребителей, тем выше потенциал роста продаж
Частота использования	чем ниже частота использования, тем выше потенциал роста продаж
Скрытый спрос	наличие неудовлетворенных потребностей говорит о свободных рыночных нишах в сегменте
Уровень лояльности	чем выше неудовлетворенность существующим уровнем товара на рынке, тем легче переключить потребителей конкурентов
Уровень доходов потребителей	чем выше экономическая стабильность и платежеспособность потребителей, тем устойчивее возможный рост бизнеса
Эластичность спроса	низкая чувствительность спроса к цене позволяет устанавливать надбавку к цене, минимизирует риск ценовой конкуренции
Постоянность спроса	чем ниже постоянность уровня спроса (сезонность, скачки в потреблении, зависимость спроса от модных тенденций), тем выше риск получения нестабильного уровня дохода

Группа 3

Третья группа критериев для оценки привлекательности бизнеса описывает условия конкуренции и наличие барьеров в отрасли. К показателям силы конкуренции относятся: наличие товаров-субститутов, количество игроков в отрасли, вариативность ассортимента, возможности к повышению цен и монополизации каналов продаж, наличие известных торговых марок, размер рекламных бюджетов, технологичность и гибкость конкурентов, ограничение доступа к ресурсам и государственный протекционизм.

Критерий привлекательности рынка	Описание
Присутствие товаров заменителей	присутствие на рынке товаров, предлагающих аналогичные свойства, но по более низкой цене, усложняет привлечение потребителей к продукту компании
Количество игроков	чем больше игроков в отрасли, тем сложнее захватить высокую долю рынка
Разнообразие ассортимента	чем выше разнообразие ассортимента на рынке, тем сложнее дифференцировать свой товар от товаров-конкурентов и найти работающее конкурентное преимущество
Возможности к повышению цен	чем ниже возможности к росту цен, тем ниже норма доходности в сегменте
Монополизированность каналов сбыта	чем выше монополизированность каналов продаж, тем сложнее представить новый товара целевой аудитории
Присутствие известных брендов	чем выше известность брендов компаний на рынке, тем больше ресурсов потребуется на переключение потребителей на продукт Вашей компании
Уровень инвестиций в поддержку товара	чем выше уровень рекламных инвестиций в отрасли, тем сложнее вывести неизвестный продукт на рынок
Уровень технологичности игроков	чем выше технологическая оснащенность игроков, тем сложнее конкуренция
Уровень мобильности игроков	чем быстрее игроки могут реализовывать ответные действия, тем сложнее конкурировать на рынке
Ограниченность ресурсов	ограничения в доступе к ресурсам (например, трудовым — квалифицированный персонал, финансовым — кредитам) или сырью, которые требуются для производства товара, снижают привлекательность рынка
Ограничения со стороны государства	чем выше ограничения и вмешательство государства в отрасль, тем ниже ее прибыльность и привлекательность для компании

Группа 4

Четвертая группа факторов привлекательности отрасли оценивает тренды и описывает перспективы бизнеса на рынке. К показателям, способным оценить привлекательность рынка в долгосрочной перспективе, относятся:

Критерий привлекательности рынка	Описание
Описание спроса	изменение предпочтений, ценностей и стиля жизни потребителей может привести к спаду спроса на товар и отказу от продукта компании
Численность аудитории	снижение численности аудитории в сегменте приведет к снижение спроса на товар
Платежеспособность аудитории	снижение платежеспособности аудитории рынка может привести к снижению частоты использования товаром, переключению на более дешевые аналоги или отказу от пользования категорией продуктов
Вероятность входа новых игроков	перспективы входа новых сильных игроков повышают риск ужесточения конкуренции и снижения прибыльности отрасли
Дешевые заменители	рост низко-стоимостных предложений конкурентов снижает прибыльность отрасли и повышает риск переключения потребителей, чувствительных к цене
Влияние государства	увеличение ограничения со стороны государства: ожидание ввода более жестких правил функционирования на рынке, новых правовых актов увеличивают риск существования в отрасли и снижения прибыльности бизнеса
Факторы макросреды	экономический кризис, смена власти, изменение климата, ужесточение климатических условий могут быть рассмотрены как потенциальные риск снижения доходности
Снижение темпов роста рынка	чем ниже потенциал роста рынка в долгосрочном периоде, тем ниже привлекательность отрасли
Динамика затрат	прогнозируемое повышение затрат на производство снижает прибыльность и привлекательность целевого рынка
Изменение технологий	изменение технологии или ожидающийся технологический прорыв может значимо перевернуть баланс сил в отрасли

Группа 5

Пятая группа факторов оценивает конкурентоспособность товара компании. Оценку привлекательности рыночного сегмента невозможно проводить без анализа перспектив товара компании в сегменте. Даже очень привлекательный сегмент рынка может быть абсолютно непригодным для компании, если она не имеет подходящего товара, необходимого уровня компетентности и ресурсов для работы в сегменте. Поэтому завершающим этапом анализа привлекательности рынка выступает оценка конкурентоспособности товара. которую можно провести по следующим параметрам:

Товар считается конкурентоспособным, если обладает всеми перечисленными ниже характеристиками.

Критерий привлекательности рынка	Описание
Качество товара	товар компании способен удовлетворить ключевые потребности потребителей целевого рынка на эффективном уровне
Уникальность товара	товар компании обладает устойчивым конкурентным преимуществом перед товарами конкурентов
Сила торговой марки	товар компании имеет высокий уровень знания, положительные ассоциации и хороший имидж среди целевой аудитории
Обеспеченность ресурсами	компания имеет достаточные ресурсы для функционирования на рынке: квалификация персонала, доступ к финансам, возможности маркетинга, доступ к рыночным технологиям
Уровень компетенции	компания обладает достаточной компетенцией для функционирования в сегменте
Скорость реакции	компания способна реагировать на рыночные изменения быстро и своевременно
Уровень цен и прибыль	компания способна продавать свой товар на рынке по рыночным ценам с хорошей нормой прибыли
Продвижение товара	компания способна поддерживать, рекламировать и развивать свой товар на конкурентном уровне
Распределение товара	компания способная построить необходимую систему дистрибуции товара, чтобы сделать его доступным для целевой аудитории

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