Examples of Key Performance Indicators
Key Performance Indicators (KPI) are used in performance measurement systems such as the Balanced Scorecard. Examples of KPI's for specific measurement areas include:
Measurement Area => Customer Service (Price, Delivery, Support, Satisfaction). Examples of KPI's => Price comparisons to competition, number of on-time deliveries, response times, customer complaints, number of product returns, customer survey results, service awards, etc.)
Measurement Area => Internal Operations (Efficiency, Costs, Production, Inventories). Examples of KPI's => Cycle times, inventory turnovers, defect rates, plant utilization, targets met, unit cost compared to competition, overhead trends, etc.
Measurement Area => Innovation (New Products, Technology, R & D). Examples of KPI's => Number of new products, number of patents, new technologies adopted, system improvements implemented, etc.
Measurement Area => Financial (Profitability, Growth, Value). Examples of KPI's => Return on Equity, growth rate compared to industry growth rate, EVA, levels of operating cash flow, etc.
The ultimate purpose of KPI's is to drive future performance. The Balanced Scorecard provides the framework for capturing and reporting this performance.
Written by: Matt H. Evans, CPA, CMA, CFM | Email: matt@exinfm.com | Phone: 1-877-807-8756