key performance indicators

1. Definition of key performance indicators (KPI)

A key performance indicator is a financial and non-financial measure used to measure

progress towards a stated organizational goal or objective.

2. The benefits of measuring Key Performance Indicators

• Can allow management to see the company or department performance in one place.
• A team can work together to a common set of measurable goals.
• It can be a very quick way of seeing the actual performance of a goal or strategic
objective.
• Decisions can be made much quicker when there are accurate and visible measures to
back them up.

3. Characteristics of KPI
• They are leading indicators of performance desired by the organization.
• Easy to understand.
• It should be balanced not undermine each other.
• Users can gauge their progress overtime.
• KPI is always connected with the corporate goals.
• A KPI is decided by the middle or top management.
• It belongs to an individual who is accountable for its outcome.
• A KPI leads to action.
• Few in number.
• KPI’s loses its value overtime so they must be periodically reviewed and refreshed.

4. Condition of KPI:

• Specific.
• Measurable.
• Achievable.
• Result-oriented or Relevant.
• Time-bound.
5. Sample of KPIs (key performance indicators)

A/ HUMAN RESOURCES KPI

1. Recruitment KPI

They includes KPIs about recruitment process.

2. Training KPI

They includes KPIs about training process.

3. Health and safety KPI

They includes KPIs about health and safety.

4. Performance KPI

They includes KPIs about performance management.

5. Employee loyalty KPI

They includes KPIs about employee loyalty.

B/ Sales KPI

Sales KPI include KPIs as follows

1. Customer care KPI

Customer care KPIs include KPIs such as frequency impact to customers, the rate of
service charges / profits etc.

2. Customer appraisal KPI

They are KPIs related to appraisal customer such as number of new customers, average
sale per VIP customer etc.

3. Complaints of customer KPI

They include KPIs such as Complaints are resolved in the first time, the rate of
complaints by sector etc.
C/ Marketing KPI

Marketing KPI include KPIs:

1. Public relations KPI

PR KPI include KPIs related to appraisal indicators of Public relations such as effective
PR items, press releases, conducting survey, the level of awareness of the enterprise
through the public relations did etc.

2. Promotion KPI

Promotion KPI include KPIs related to appraisal indicators of promotion activities in

marketing such as the rate of sales in promotion period and before the promotion,
percentage of sales in promotion and after promotion etc.

3. Advertisement KPI

Advertisement KPI include KPIs related to appraisal indicators of advertisement

activities in marketing such as the cost of advertising on the 1000 target audiences, the
level of awareness of the product etc.

For all sample of KPI, please visit:

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