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KPI Indicators Example

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Example Template for Designing

Key Performance Indicators


Example 1 Example 2
Strategic Goal:
Name the strategic objective Grow Customer Satisfaction. Grow Our Profits.
(from the strategy map), which
is being assessed with (Customer Perspective) (Finance Perspective)
this indicator.

Audience / Access:
Name the key audience for this Board of Directors and Board of Directors and
indicator and clarify who will Marketing Team. Finance Team.
have access rights to it.

Key Performance Question(s):


Name the performance To what extent are our customers To what extent are we
question(s) this indicator is satisfied with our service? generating bottom-line results?
helping to answer.

How will and won’t this indicator


be used?
The indicator will be used to The indicator will be used to
Describe how the insights this assess and report on our assess and report financial
indicator generates will be used customer success internally. It will performance internally and
and outline how this indicator not be used to assess externally. It will also be a key
will not be used. performance of individuals or to indicator to determine
determine bonus payments. executive pay.

Indicator Name:
Net Promoter Score. Net Profit.
Pick a short and clear
indicator name.

Data Collection Method:


Describe how the data will be The data will be collected using a The data for the net profit
collected. mail-based survey. metric is collected from the
income statement (or the finance
and accounting system).
Example Template for Designing
Key Performance Indicators
Assessment / Formula / Scale:
Using a 0-10 scale (Not at all Net Profit ($) = Sales revenue ($)
Describe how performance levels
likely to extremely likely) – Total Costs ($).
will be determined. This can be
participants answer: How likely
qualitative, in which case the
are you to recommend us to a
assessment criteria need to be
friend?
identified, or it can be numerical
NPS = % of Promoters
or using a scale, in which case
(score 9-10) – 5 of Detractors
the formula or scales with
(score 0-6).
categories need to be identified.

Targets and Performance


Thresholds: 55% by the end of 2020. $1,250,000 by the end of 2020.
Identification of targets,
benchmarks, and thresholds for
traffic lighting.

Source of Data:
Describe where the data will Survey of existing customers. Finance and accounting system.
come from.

Data Collection Frequency:


Describe how frequently is this Monthly data collection – Weekly.
indicator will be collected. If sampled 10% of our customer
possible, include a forward data base.
schedule.

Reporting Frequency:
Outline how frequently this Monthly. Weekly.
indicator will be reported to the
different audiences
(if applicable).

Data Entry:
Name the person or role Ian Miller – Marketing Assistant. Joe Blox (Finance Clerk).
responsible for collecting and
updating the data?
Example Template for Designing
Key Performance Indicators

Expiry / Revision Date:

Identify the date until when this 24 months. Target to be revised annually.
indicator will be valid to or when
it will have to be revised.

Validate your KPI

How much will it cost?:

Estimate the costs incurred by Costs are significant, but cheaper The costs of producing the net
introducing and maintaining this than a traditional customer profit measure are low because
indicator. satisfaction survey. the data is readily available.

How complete is this indicator?:


Briefly assess how well this It provides us with a nice simple Net Profit is one of a range of
indicator is helping to answer number, but the data should be profitability metrics. However,
the associated key performance supplemented with unstructured on its own it will not give us the
question and identify possible feedback about: full picture and can lead to short
limitations term thinking. It will need to be
•What is particularly good? seen over time and in the
context of other measures such
•What could be improved? as revenue, profit margin,
operating profit, return on assets
and return on equity.

Possible unintended
consequences: People could possibly influence The danger with net profit is that
customers before they take the people could cut costs to the
Briefly describe how this
survey or they could select detriment of long-term
indicator could influence the
customers that are likely to performance but deliver positive
wrong behaviors or how people
respond positively. shot term results.
could cheat on this KPI. Briefly

Extra Notes

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