27 Examples of Key Performance Indicators

Apr 24, 2023

As your organization begins to sketch out what your strategic plan might look like, it’s likely to come to your attention that you’ll need to gain consensus around what your key performance indicators will be and how they will impact your organization. If you haven’t thought much about your KPIs yet, that’s okay. We can help! We’ve compiled an complete guide that includes an overview on what is a KPI, the benefits of good indicators, and list of KPI examples [organized by department and industry] for your reference as you begin developing your organization’s key performance indicators.

Video Transcript – How to Write KPIs

Hi, my name is Erica Olsen. Today’s whiteboard video is on key performance indicators, or KPIs for short. These are those things that are associated with either goals or objectives, whatever you’re calling them, those elements of your plan that are the expressions of what you want to achieve by when those quantifiable outcome-based statements.

So KPI’s answer the quantifiable piece of your goals and objectives. They come in three different flavors. So we’ll talk about that in just a minute. But before we do, putting great measures together and making sure they work well for you, you need to have these four attributes. And before I talk about those four attributes, so I just want to say the reason they need to work well for you is because KPIs are the heartbeat of your performance management process. They tell you whether you’re making progress, and ultimately, we want to make progress against our strategy. So KPIs are the thing that do that for us. So you’re going to live with them a lot. So let’s make sure they’re really good.

Okay, so the four things you need to have in order to make sure your these measures work for you.

Our number one is your measure. So the measure is the verbal expression very simply, in words, what are we measuring, which is fairly straightforward. The tricky thing is, is we need to be as expressive as we possibly can with our measures. So number of new customers, that’s fine. There’s nothing wrong with that. But a little bit advanced or a little bit more expressive, would be number of new customers this year, or number of new customers for a certain product or a certain service. So what is it is it? Yeah, so it is, so be really clear. And when it comes to measuring it on a monthly basis, you’re gonna want to be as clear as possible. So number of new customers, let’s say this year,

Number two, is our target, or target is the numeric value that we want to achieve. So a couple of things that are important about this is, the target needs to be apples to apples with when the goal date is set, or the due date is set. So we want to achieve 1000 new customers by the end of the year. So the due date in the target works hand in hand. The other thing is the measure and the target need to work hand in hand. So it’s a number. So this is a number, this is a percentage, this is a percentage, you get the idea.

Third thing, we actually run a report on this data. So where is it coming from? Be clear about what the source is. Most organizations have all sorts of data sources, fragmented systems. So making sure you identify where this data is coming from will save you a lot of time.

And then frequency. So how often are you going to be reporting on this KPI, ideally, you’re running monthly strategy reviews to report on the progress of your plan, at least monthly, in which case we’d like to see monthly KPIs. So you got to be able to pull the data monthly in order to make that happen. That’s not always possible. But let’s try to get there. Certainly some organizations are weekly and others are daily, monthly is a good place to start. So frequency. Great.

So now we know the components that we need to have in place in order to have our KPIs. Here are some different types of KPIs that you might think about as you’re putting your plan together.

So there are just straight up raw numbers, I call these widget counting, there’s nothing wrong with widget counting, they don’t necessarily tell a story. And I’ll talk about how to make this tell a story in a minute. But this is just simply widget counting number of things.

The second thing is progress. So this is really often used, it’s great. We use this, which is expressed as percent complete percent complete of the goal, percent completed a project, whatever it might be, it’s a project type measure. It’s a good measure, if if you don’t have quantifiable measures, or you can’t get the data, and you just want to track the performance of the goal as it relates to action items being completed under it.

The third type of indicator is a Change Type Indicator, like percent increase in sales, making this better would be percent increase in sales compared to last year. And the idea is 22%. So you can see how that starts to be more expressive, and work with the target. So this serves to tell a little bit more of a story than this one does, right? And if you want to actually make your widget counting measures tell more of a story like this one does, you might change something like this to read percentage of new customers acquired compared to same time last year. So that’s an example.

Okay, so now we know what we have to have in place and kind of different types of measures to get our ideas flowing. Let’s talk about one thing that you might take your measure writing to the next level and that is think about the fact that there are leading and lagging measures so are leading and lagging indicators. So percent increase in sales or sales is a lagging indicator it occurred as an outcome. If you want to make sure that you’re on track ACC, you might have a KPI in place, which is telling us whether we’re going to hit that increase such as your pipeline, maybe number of leads, or the size of your pipeline. So we don’t want to over rotate on this necessarily, but we do want to make sure we have a combination of leading and lagging measures when we’re looking at our performance on a monthly basis.

So with that, that’s all we have for today. Hopefully you have what you need to write great KPIs for your organization. Happy strategizing. And don’t forget, subscribe to our channel.

What is a KPI?

Key performance indicators (KPIs) are the elements of your organization’s plan that express what outcomes you are seeking and how you will measure their success. In other words, they tell you what you want to achieve and by when. They are the quantifiable, outcome-based statements you’ll use to measure if you’re on track to meet your goals or objectives. Good plans use 5-7 of these to manage and track their progress against goals.

What is a KPI?

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What are KPIs? What’s the purpose? Why do you need them?

Key performance indicators are intended to create a holistic picture of how your organization is performing against its intended targets or objectives. Great KPIs should accomplish all the following:

  • Outline and measure your organization’s most important set of outputs.
  • Work as the heartbeat of your performance management process and confirm whether progress is being made against your strategy.
  • Represent the key elements of your strategic plan that express what you want to achieve by when.
  • Measure the quantifiable components of your goals and objectives.
  • Measure the most important leading and lagging measures in your organization.

The Five Elements of Key Performance Indicators

These are the heartbeat of your performance management process, and they need to work well! They tell you whether you’re making progress, and ultimately you want to make progress against your strategy. You’ll live with them, so make sure they’re valuable!

Great strategies track the progress of core elements of the plan. Each key performance indicator needs to include the following elements:

  • A Measure: Every KPI must have a measure. The best ones have more specific or expressive measures.
  • A Target: Every KPI needs to have a target that matches your measure and the time period of your goal. These are generally a numeric value you’re seeking to achieve.
  • A Data Source: Every one of these needs to have a clearly defined data source so there is no gray area in how each is being measured and tracked.
  • Reporting Frequency: Different measures may have different reporting needs, but a good rule to follow is to report on them at least monthly.
  • Owner: While this isn’t a mandatory aspect of your KPI statement, setting expectations of who will take care of tracking, reporting, and refining specific KPIs is helpful to your overall organizational plan.

Elements of a KPI

Indicators vs. Key Performance Indicators

Indicators

An indicator is a general term that describes the different metrics of a business’s performance.

There can be several types of indicators a company may track, but not all indicators are KPIs, especially if they don’t tie into an organization’s overall strategic plan or objectives.

Key Performance Indicators

A key performance indicator, on the other hand, is a very specific indicator that measures an organization’s progress toward a specific goal or objective. It is typically recommended to narrow down the number of KPIs you track. You should only track the best and most valuable indicators that tie to your organization’s long-term and strategic direction.

Benefits of Good Key Performance Indicators

What benefits do they have on your strategic plan, and on your organization as a whole? A lot of benefits, actually! They are extremely important to the success of your strategic plan and implementing them correctly is critical to success.

  • Benefit #1: They provide clarity and focus to your strategic plan by measuring progress and aligning your team’s efforts to the organization’s objectives. They also show your measurable progress over time and create ways to track your organization’s continued improvement.
  • Benefit #2: Key performance indicators create a way to communicate a shared understanding of success. They give your team a shared understanding of what’s important to achieve your long-term vision and create a shared language to express your progress.
  • Benefit #3: They provide signposts and triggers to help you identify when to act. A good balance of leading and lagging key performance indicators allow you to see the early warning signs when things are going well, or when it’s time to act.

How to Develop KPIs

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How to Develop KPIs

We’ve covered this extensively in our How to Identify Key Performance Indicators post. But, here’s a really quick recap:

Step 1: Identify Measures that Contribute Directly to Your Annual Organization-wide Objectives

Ensure you select measures that can be directly used to quantify your most important annual objectives.

Step 2: Evaluate the Quality of Your Core Performance Indicators

Select a balance of leading and lagging indicators that are quantifiable and move your organization forward.

Step 3: Assign Ownership

All KPIs need ownership! It’s just that simple.

Step 4: Monitor and Report with Consistency

Whatever you do, don’t just select measures and not track them. Be consistent. We recommend selecting measures that can be reported upon at least monthly.

The 3 Common Types of KPIs to Reference as You Build Your Metrics

Key performance indicators answer the quantifiable piece of your goals and objectives. They come in three different flavors. Now that you know the components of great key performance indicators, here are some different ones that you might think about as you’re putting your plan together:

Broad Number Measures

The first type of KPI is what we like to call broad number measures. These are the ones that essentially count something. An example is counting the number of products sold or the number of visits to a webpage.

PRO TIP:

There is nothing wrong with these, but they don’t tell a story. Great measures help you create a clear picture of what is going on in your organization. So, using only broad ones won’t help create a narrative.

Progress Measures

Progress key performance indicators are used to help measure the progress of outcomes. This is most commonly known as the “percent complete” KPI, which is helpful in measuring the progress of completing a goal or project. These are best when quantifiable outcomes are difficult to track, or you can’t get specific data.

PRO TIP:

Progress KPIs are great, but your KPI stack needs to include some easily quantifiable measures. We recommend using a mixture of progress KPIs and other types that have clear targets and data sources.

Change Measures

The final type of KPI is a change indicator. These are used to measure the quantifiable change in a metric or measure. An example would be, “X% increase in sales.” It adds a change measure to a quantifiable target.

The more specific change measures are, the easier they are to understand. A better iteration of the example above would be “22% increase in sales over last year, which represents an xyz lift in net-new business.” More expressive measures are better.

PRO TIP:

Change measures are good for helping create a clear narrative. It helps explain where you’re going instead of just a simple target.

Leading KPIs vs Lagging KPIs

Part of creating a holistic picture of your organization’s progress is looking at different types of measures, like a combination of leading and lagging indicators. Using a mixture of both allows you to monitor early warning signs closely when your plan is under or overperforming (leading) and you have a good hold on how that performance will impact your business down the road (lagging). Here’s a deep dive on leading versus lagging indicators:

Leading Indicator

We often refer to these metrics as the measures that tell you how your business might/will perform in the future. They are the warning buoys you put out in the water to let you know when something is going well, and when something isn’t.

For example, a leading KPI for an organization might be the cost to deliver a good/service. If the cost of labor increases, it will give you a leading indicator that you will see an impact on net profit or inventory cost.

Another example of a leading indicator might be how well your website is ranking or how well your advertising is performing. If your website is performing well, it might be a leading indicator that your sales team will have an increase in qualified leads and contracts signed.

Lagging Indicator

A lagging indicator refers to past developments and effects.This reflects the past outcomes of your measure. So, it lags behind the performance of your leading indicators.

An example of a lagging indicator is EBITA. It reflects your earnings for a past date. That lagging indicator may have been influenced by leading indicators like the cost of labor/materials.

Balancing Leading and Lagging Indicators

If you want to make sure that you’re on track, you might have a KPI in place telling you whether you’re going to hit that increase, such as your lead pipeline. We don’t want to over-rotate on this, but as part of a holistic, agile plan, we recommend outlining 5-7 key performance indicators as part of your plan that are a mix of leading and lagging indicators when looking at performance monthly.

Having a mixture of both gives you both a look-back and a look-forward as you measure the success of your plan and business health. We also recommend identifying and committing to tracking and managing the same KPIs for about a year so you can create consistency in data and reporting.

KPI Examples

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27 KPI Examples

Sales Key Performance Indicators

  • Number of contracts signed per quarter
  • Dollar value for new contracts signed per period
  • Number of qualified leads per month
  • Number of engaged qualified leads in the sales funnel
  • Hours of resources spent on sales follow up
  • Average time for conversion
  • Net sales – dollar or percentage growth

Increase the number of contracts signed by 10% each quarter.

  • Measure: Number of contracts signed per quarter
  • Target: Increase number of new contracts signed by 10% each quarter
  • Data Source: CRM system
  • Reporting Frequency: Weekly
  • *Owner: Sales Team
  • Due Date: Q1, Q2, Q3, Q4

Increase the value of new contracts by $300,000 per quarter this year.

  • Measure: Dollar value for new contracts signed per period
  • Target: Sign $300,000 worth of net new contracts per quarterlip>
  • Data Source: Hubspot Sales Funnel
  • Reporting Frequency: Monthly
  • *Owner: VP of Sales
  • Due Date: Q1, Q2, Q3, Q4

Increase the close rate to 30% from 20% by the end of the year.

  • Measure: Close rate – number of closed contracts/sales qualified leads
  • Target: Increase close rate from 20% to 30%
  • Data Source: CRM system
  • Reporting Frequency: Monthly
  • *Owner: Director of Sales
  • Due Date: December 31, 2023

Increase the number of weekly engaged qualified leads in the sales from 50 to 75 by the end of FY23.

  • Measure: Number of engaged qualified leads in sales funnel
  • Target: 50 to 75 by end of FY2023
  • Data Source: Marketing and Sales CRM
  • Reporting Frequency: Monthly
  • *Owner: Head of Sales
  • Due Date: December 31, 2023

Decrease time to conversion from 60 to 45 days by Q3 2023.

  • Measure: Average time for conversion
  • Target: 60 days to 45 days
  • Data Source: CRM system
  • Reporting Frequency: Monthly
  • *Owner: Director of Sales
  • Due Date: Q3 2023

Increase number of closed contracts by 2 contracts/week in 2023.

  • Measure: Number of closed contracts
  • Target: Increase closed contracts a week from 4 to 6
  • Data Source: Sales Pipeline
  • Reporting Frequency: Monthly
  • *Owner: Sales and Marketing Team
  • Due Date: December 31, 2023

Examples of KPIs for Financial

  • Growth in revenue
  • Net profit margin
  • Gross profit margin
  • Operational cash flow
  • Current accounts receivables

Financial KPIs as SMART Annual Goals

Grow top-line revenue by 10% by the end of 2023.

  • Measure: Revenue growth
  • Target: 10% growt
  • Data Source: Quickbooks
  • Reporting Frequency: Monthly
  • *Owner: Finance and Operations Team
  • Due Date: By the end 2023

Increase gross profit margin by 12% by the end of 2023.

  • Measure: Percentage growth of net profit margin
  • Target: 12% net profit margin increase
  • Data Source: Financial statements
  • Reporting Frequency: Monthly
  • *Owner: Accounting Department
  • Due Date: By the end 2023

Increase net profit margin from 32% to 40% by the end of 2023.

  • Measure: Gross profit margin in percentage
  • Target: Increase gross profit margin from 32% to 40% by the end of 2023
  • Data Source: CRM and Quickbooks
  • Reporting Frequency: Monthly
  • *Owner: CFO
  • Due Date: By the end 2023

Maintain $5M operating cash flow for FY2023.

  • Measure: Dollar amount of operational cash flow
  • Target: $5M average
  • Data Source: P&L
  • Reporting Frequency: Monthly
  • *Owner: CFO
  • Due Date: By the end FY2023

Collect 95% of account receivables within 60 days in 2023.

  • Measure: Accounts collected within 60 days
  • Target: 95% in 2023
  • Data Source: Finance
  • Reporting Frequency: Monthly
  • *Owner: Accounting Department
  • Due Date: End of 2023

Examples of KPIs for Customers

  • Number of customers retained
  • Percentage of market share
  • Net promotor score
  • Average ticket/support resolution time

Customer KPIs as SMART Annual Goals

90% of current customer monthly subscriptions during FY2023.

  • Measure: Number of customers retained
  • Target: Retain 90% percent of monthly subscription customers in FY2023
  • Data Source: CRM software
  • Reporting Frequency: Monthly
  • *Owner: Director of Client Operations
  • Due Date: End of 2023

Increase market share by 5% by the end of 2023.

  • Measure: Percentage of market share
  • Target: Increase market share from 25%-30% by the end of 2023
  • Data Source: Market research reports
  • Reporting Frequency: Quarterly
  • *Owner: Head of Marketing
  • Due Date: End of 2023

Increase NPS score by 9 points in 2023.

  • Measure: Net Promoter Score
  • Target: Achieve a 9-point NPS increase over FY2023
  • Data Source: Customer surveys
  • Reporting Frequency: Monthly
  • *Owner: COO
  • Due Date: End of 2023

Achieve a weekly ticket close rate of 85% by the end of FY2023.

  • Measure: Average ticket/support resolution time
  • Target: Achieve a weekly ticket close rate of 85%
  • Data Source: Customer support data
  • Reporting Frequency: Weekly
  • *Owner: Customer Support Team
  • Due Date: End of 2023

Examples of KPIs for Operations

  • Order fulfillment time
  • Time to market
  • Employee satisfaction rating
  • Employee churn rate
  • Inventory turnover

Operational KPIs as SMART Annual Goals

Average 3 days maximum order fill time by the end of Q3 2023.

  • Measure: Order fulfilment time
  • Target: Average maximum of 3 days
  • Data Source: Order management software
  • Reporting Frequency: Monthly
  • *Owner: Shipping Manager
  • Due Date: Q3 2023

Achieve an average SaaS project time-to-market of 4 weeks per feature in 2023.

  • Measure: Average time to market
  • Target: 4 weeks per feature
  • Data Source: Product development and launch data
  • Reporting Frequency: Monthly
  • *Owner: Product Development Team
  • Due Date: End of 2023

Earn a minimum score of 80% employee satisfaction survey over the next year.

  • Measure: Employee satisfaction rating
  • Target: Earn a minimum score of 80% employee
  • Data Source: Employee satisfaction survey and feedback
  • Reporting Frequency: Monthly
  • *Owner: Human Resources
  • Due Date: December 31, 2023

Maintain a maximum of 10% employee churn rate over the next year.

  • Measure: Employee churn rate
  • Target: Maintain a maximum of 10% employee churn rate over the next year
  • Data Source: Human resources and payroll data
  • Reporting Frequency: Monthly
  • *Owner: Human Resources
  • Due Date: December 31, 2023

Achieve a minimum ratio of 5-6 inventory turnover in 2023.

  • Measure: Inventory turnover ratio
  • Target: Minimum ratio of 5-6
  • Data Source: Inventory management software
  • Reporting Frequency: Monthly
  • *Owner: perations Department
  • Due Date: End of 2023

Marketing Key Performance

  • Monthly website traffic
  • Number of marketing qualified leads
  • Conversion rate for call-to-action content
  • Keywords in top 10 search engine results
  • Blog articles published this month
  • E-Books published this month

Marketing KPIs as SMART Annual Goals

Achieve a minimum of 10% increase in monthly website traffic over the next year.

  • Measure: Monthly website traffic
  • Target: 10% increase in monthly website
  • Data Source: Google analytics
  • Reporting Frequency: Monthly
  • *Owner: Marketing Manager
  • Due Date: End of 2023

Generate a minimum of 200 qualified leads per month in 2023.

  • Measure: Number of marketing qualified leads
  • Target: 200 qualified leads per month
  • Data Source: Hubspot
  • Reporting Frequency: Monthly
  • *Owner: Marketing Manager
  • Due Date: December 31, 2023

Achieve a minimum of 10% conversion rate for on-page CTAs by end of Q3 2023.

  • Measure: Conversion rate on service pages
  • Target: 10%
  • Data Source: Hubspot
  • Reporting Frequency: Weekly
  • *Owner: Marketing Manager
  • Due Date: End of Q3, 2023

Achieve a minimum of 20 high-intent keywords in the top 10 search engine results over the next year.

  • Measure: Keywords in top 10 search engine results
  • Target: 20 keywords
  • Data Source: SEM Rush data
  • Reporting Frequency: Weekly
  • *Owner: SEO Manager
  • Due Date: December 31, 2023

Publish a minimum of 4 blog articles per month to earn new leads in 2023.

  • Measure: Blog articles
  • Target: 4 per month
  • Data Source: CMS
  • Reporting Frequency: Monthly
  • *Owner: Content Marketing Manager
  • Due Date: December 2023

Publish at least 2 e-books per quarter in 2023 to create new marketing-qualified leads.

  • Measure: E-Books published
  • Target: 2 per quarter
  • Data Source: Content management system
  • Reporting Frequency: Quarterly
  • *Owner: Head of Marketing
  • Due Date: December 2023

Bonus: +40 Extra KPI Examples

Supply Chain Example Key Performance Indicators

  • Number of On-Time Deliveries
  • Inventory Carry Rate
  • Months of Supply on Hand
  • Inventory-to-Sales Ratio (ISR)
  • Carrying Cost of Inventory
  • Inventory Turnover Rate
  • Perfect Order Rate
  • Inventory Accuracy
  • Fill Rate

Healthcare Example Key Performance Indicators

  • Bed or Room Turnover
  • Average Patient Wait Time
  • Average Treatment Charge
  • Average Insurance Claim Cost
  • Medical Error Rate
  • Patient-to-Staff Ratio
  • Medication Errors
  • Average Emergency Room Wait Times
  • Average Insurance Processing Time
  • Billing Code Error Rates
  • Average Hospital Stay
  • Patient Satisfaction Rate

Human Resource Example Key Performance Indicators

  • Organization Headcount
  • Average Number of Job Vacancies
  • Applications Received Per Job Vacancy
  • Job Offer Acceptance Rate
  • Cost Per New Hire
  • Average Salary
  • Average Employee Satisfaction
  • Employee Turnover Rate
  • New Hire Training Effectiveness

Social Media Example Key Performance Indicators

  • Average Engagement
  • % Growth in Following
  • Traffic Conversions
  • Social Interactions
  • Website Traffic from Social Media
  • Number of Post Shares
  • Social Visitor Conversion Rates
  • Mentions
  • Issues Resolved Using Social Channel

Conclusion: Keeping a Pulse on Your Plan

With the foundational knowledge of the KPI anatomy and a few example starting points, it’s important you build out these metrics with detailed and specific data sources so you can truly evaluate if you’re achieving your goals. Remember, these are going to be the 5-7 core metrics you’ll be living by for the next 12 months.

A combination of leading and lagging KPIs will paint a clear picture of your organization’s strategic performance and empower you to make agile decisions to impact the success of your team. If you’d like more information on how you can build better ones, check out the video above and click here to see why not all KPIs are created equal.

Our Other KPI Resources

We have several other great resources to consider as you build your organization’s Key Performance Indicators! Check out these other helpful posts and guides:

  • OKRs vs. KPIs: A Downloadable Guide to Explain the Difference
  • How to Identify KPIs in 4 Steps
  • KPIs vs Metrics: Tips and Tricks to Performance Measures
  • Guide to Establishing Weekly Health Metrics
  • FAQs on Key Performance Indicators

    What are key performance indicators?

    KPI stands for Key Performance Indicators. KPIs are the elements of your organization’s business or strategic plan that express what outcomes you are seeking and how you will measure their success. They express what you need to achieve by when. KPIs are always quantifiable, outcome-based statements to measure if you’re on track to meet your goals and objectives.

    What are the 4 elements of key performance indicators?

    The 4 elements of key performance indicators are:

  • A Measure – The best KPIs have more expressive measures.
  • A Target – Every KPI needs to have a target that matches your measure and the time period of your goal.
  • A Data Source – Every KPI needs to have a clearly defined data source.
  • Reporting Frequency – A defined reporting frequency.

    14 Comments

    1. Islam Elkhateeb says:

      HI Erica
      hope your are doing well,
      Sometime Strategy doesn’t cover all the activities through the company, like maintenance for example may be quality control …. sure they have a contribution in the overall goals achievement but there is no specific new requirement for them unless doing their job, do u think its better to develop a specific KPIs for these department?
      waiting your recommendation

    2. zakir says:

      Thanks for your strategic KPIs

    3. Diana says:

      Hello Erica,
      Could you please clarify how to set KPIs for the Strategic Planning team?

    4. Diana says:

      Hello Erica,
      Could you please clarify, how to set the KPIs for the Strategic PLanning team?

    5. noha sarhan says:

      exampels of empowerment kpis

    6. Mirko Cuneo says:

      I found great information in this article. In any case, the characteristics that KPIs must have are: measurability, effectiveness, relevance, utility and feasibility

    7. nesreen ali says:

      How to write methodology guidelines for strategy implementation / a company’s review and tracking (process and workflow) for all a company’s divisions

    8. support on strategizing Learning & Development for Automobile dealership

    9. Noble says:

      Could you please to clarify how to write the KPIs for the Secretary.

    10. Akhil says:

      That’s an amazing article.

    11. shahul hameed says:

      Could you please to clarify how to write the KPIs for the office boy supervisor

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