Ted is a Founder and Managing Partner of ClearPoint Strategy and leads the sales and marketing teams.
Explore 30 key performance indicators (KPIs) across finance, HR, & more, to optimize your business processes efficiently.
Table of Contents
Think of KPIs as the compass guiding your ship. Choose the right ones, and you'll stay on course towards your desired destination. But choose poorly, and you might find yourself adrift, measuring things that don't truly matter for your success. In this guide, we'll demystify KPIs, provide a step-by-step approach to selecting and tracking them, and offer over 30 practical examples to inspire your own KPI strategy.
What Are Key Performance Indicators (KPIs)?
One of the questions we are asked regularly is, "What is a KPI?" A Key Performance Indicator (KPI) is a critical measure used to track and assess your organization's progress toward achieving its strategic goals. Let's break it down:
Indicator: Any raw measurement within your business. Think total hours worked, website visitors, etc.
Performance Indicator: A measurement tied to your organization's performance,
Key Performance Indicator (KPI): The cream of the crop. These are the most critical measurements, directly linked to your strategic goals.
In our experience, the most effective leadership teams track fewer than 25 measures that cut across the organization’s four perspectives: financial, customer, process, and people.
Using KPI lists as a starting point for designing your own set of metrics is a smart approach because it provides a solid foundation and ensures you’re considering key areas of performance. These lists offer a variety of established metrics that have proven effective across different industries, giving you a reference point to tailor your own KPIs to your organization's specific goals and needs.
Download KPI Lists
Don't want to spend time copying and pasting from the below? No worries, we hate wasting time too. So just click on the links below to request an Excel spreadsheet with all the KPIs below (and much more!)
We've broken down our list of KPIs into the four categories of the Balanced Scorecard: Financial, Customer, Process and People. Make sure you select a few from each category so that your strategy is well-balanced across the organization.
Note that the right KPIs for you might not be the right KPIs for another organization. Make sure you’ve researched as many key performance indicators as you can to determine which ones are appropriate for your industry.
From there, determine which KPI targets will help you further understand and meet your goals, and then integrate them throughout your department. KPIs should match your strategy, not just your industry.
Financial KPIs
Tracking financial KPIs is crucial because it helps organizations understand their financial health and performance. By monitoring key metrics like revenue, expenses, and profit margins, organizations can make informed decisions, identify trends, and spot potential issues before they become problems.
KPI Name
Definition
Formula
Gross Profit Margin
Measures the percentage of revenue that exceeds the cost of goods sold.
(Revenue - Cost of Goods Sold) / Revenue
Net Profit Margin
Measures overall profitability after all expenses are accounted for.
Net Profit / Revenue
Total Cost Management
Tracks total expenses and identifies areas to reduce and manage costs effectively.
N/A
Revenue Target Comparison
Compares actual revenue to projected revenue. Analyzing discrepancies helps assess departmental performance.
N/A
Production Cost Analysis
Calculates total production costs to determine product markup and profit margins.
Total Production Costs / Number of Units Sold
Accounts Receivable Efficiency (DSO)
Measures the average number of days to collect payment after a sale.
(Accounts Receivable / Total Credit Sales) x Number of Days
Regional Sales Performance
Analyzes sales performance across different regions to provide feedback and improve underperforming areas.
N/A
Budget Adherence
Compares actual expenses to budgeted amounts to understand deviations and improve future budgeting.
N/A
Financial Strength
Demonstrates cash flow from financing activities.
(Cash Received from Issuing Stock or Debt) - (Cash Paid as Dividends and Debt Reacquisition)
Customer Service Cost
Calculates the average annual cost to serve one customer.
Total Expenses / Total Customers
EBITDA
Measures earnings before interest, taxes, depreciation, and amortization.
Tracking customer KPIs is essential for organizations to understand and improve the customer experience. These metrics provide valuable insights into customer satisfaction, retention, and loyalty, helping organizations identify what’s working well and where improvements are needed. By monitoring customer KPIs, organizations can make data-driven decisions that enhance customer relationships, boost satisfaction, and ultimately drive growth.
KPI Name
Definition
Formula
Customer Satisfaction Score (CSAT)
Measures the percentage of customers who are satisfied with a product or service.
(Number of Satisfied Customers / Number of Survey Responses) x 100
Net Promoter Score (NPS)
Evaluates customer loyalty by asking how likely they are to recommend a company’s products or services.
% Promoters - % Detractors
Customer Retention Rate
Measures the percentage of customers a company retains over a specific period.
((End Customers - New Customers) / Start Customers) x 100
Customer Churn Rate
Tracks the percentage of customers who stop doing business with a company over a specific period.
(Number of Customers Lost / Total Number of Customers) x 100
Customer Lifetime Value (CLV)
Estimates the total revenue a business can expect from a single customer over the course of their relationship.
Average Purchase Value x Purchase Frequency x Customer Lifespan
Customer Acquisition Cost (CAC)
Calculates the cost associated with acquiring a new customer.
Total Sales and Marketing Costs / Number of New Customers Acquired
First Contact Resolution (FCR)
Measures the percentage of customer issues resolved on the first contact.
(Number of Issues Resolved on First Contact / Total Number of Issues) x 100
Customer Effort Score (CES)
Assesses how much effort a customer must exert to resolve an issue, complete a purchase, or interact with customer service.
Survey Results (Typically on a Scale from 1-5 or 1-7)
Repeat Purchase Rate (RPR)
Measures the percentage of customers who have made more than one purchase.
(Number of Repeat Customers / Total Number of Customers) x 100
Customer Advocacy
Tracks the percentage of customers who actively promote and advocate for the brand.
(Number of Customer Advocates / Total Number of Customers) x 100
Tracking process KPIs is vital for organizations to ensure their operations run smoothly and efficiently. These metrics help monitor the effectiveness of various processes, from production to service delivery, allowing organizations to identify bottlenecks, reduce waste, and optimize performance. By keeping a close eye on process KPIs, organizations can continuously improve their workflows, enhance productivity, and deliver consistent quality.
KPI Name
Definition
Formula
Customer Satisfaction Score (CSAT)
Measures the percentage of customers who are satisfied with a product or service.
(Number of Satisfied Customers / Number of Survey Responses) x 100
Net Promoter Score (NPS)
Evaluates customer loyalty by asking how likely they are to recommend a company’s products or services.
% Promoters - % Detractors
Customer Retention Rate
Measures the percentage of customers a company retains over a specific period.
((End Customers - New Customers) / Start Customers) x 100
Customer Churn Rate
Tracks the percentage of customers who stop doing business with a company over a specific period.
(Number of Customers Lost / Total Number of Customers) x 100
Customer Lifetime Value (CLV)
Estimates the total revenue a business can expect from a single customer over the course of their relationship.
Average Purchase Value x Purchase Frequency x Customer Lifespan
Customer Acquisition Cost (CAC)
Calculates the cost associated with acquiring a new customer.
Total Sales and Marketing Costs / Number of New Customers Acquired
First Contact Resolution (FCR)
Measures the percentage of customer issues resolved on the first contact.
(Number of Issues Resolved on First Contact / Total Number of Issues) x 100
Customer Effort Score (CES)
Assesses how much effort a customer must exert to resolve an issue, complete a purchase, or interact with customer service.
Survey Results (Typically on a Scale from 1-5 or 1-7)
Repeat Purchase Rate (RPR)
Measures the percentage of customers who have made more than one purchase.
(Number of Repeat Customers / Total Number of Customers) x 100
Customer Advocacy
Tracks the percentage of customers who actively promote and advocate for the brand.
(Number of Customer Advocates / Total Number of Customers) x 100
Human Resources KPIs
Tracking human resources KPIs is crucial for organizations to effectively manage and develop their workforce. These metrics provide insights into employee satisfaction, turnover, training, and productivity, helping organizations understand the health and effectiveness of their HR practices. By monitoring HR KPIs, organizations can identify areas for improvement, enhance employee engagement, and ensure that they are attracting and retaining top talent.
KPI Name
Definition
Formula
Employee Turnover Rate (ETR)
Measures the rate at which employees leave the company.
(Number of Departing Employees / Average Number of Employees) x 100
Response to Open Positions
Measures the percentage of qualified applicants for open positions.
N/A
Employee Satisfaction
Assesses employee satisfaction through surveys and other metrics.
N/A
Retirement Rate
Calculates the percentage of employees retiring.
(Number of Retirees / Total Headcount) x 100
Knowledge Achieved with Training
Evaluates training effectiveness through exam pass rates and average scores.
N/A
Internal Promotions vs. External Hires
Measures the ratio of internal promotions to external hires.
N/A
Salary Competitiveness Ratio (SCR)
Compares company salary averages to industry standards.
Company Average Salary / Competitor Average Salary
Absenteeism Rate
Measures the percentage of workdays lost due to employee absence.
(Number of Days Absent / Total Number of Workdays) x 100
Training Completion Rate
Tracks the percentage of employees who complete assigned training programs.
(Number of Employees Completing Training / Total Number of Employees Assigned Training) x 100
Time to Fill
Measures the average number of days it takes to fill an open position.
Total Days to Fill Positions / Number of Positions Filled
Employee Productivity
Evaluates the output of employees relative to the input in terms of hours worked or costs.
Metrics are important in local government because they help track the effectiveness of public services and ensure resources are being used wisely. By measuring key indicators, local governments can see what’s working well and what needs improvement, making it easier to deliver better services to the community. Metrics also provide a way to stay accountable to citizens, showing that their tax dollars are being spent efficiently and effectively.
Category
KPI Name
Definition
Formula
Public Safety
Crime Rate
Measures the number of crimes reported per 1,000 or 100,000 residents.
N/A
Emergency Response Time
Average time taken for emergency services (police, fire, ambulance) to respond to incidents.
N/A
Fire Incident Rate
Number of fire incidents per 1,000 or 100,000 residents.
N/A
Traffic Accident Rate
Number of traffic accidents per 1,000 or 100,000 residents.
N/A
Financial
Budget Variance
Difference between the budgeted amount and the actual amount spent.
Actual Spending - Budgeted Amount
Revenue Collection Rate
Percentage of revenue collected compared to the amount billed.
(Revenue Collected / Revenue Billed) x 100
Debt Ratio
Ratio of total debt to total revenue.
Total Debt / Total Revenue
Grant Funding Utilization
Percentage of available grant funds that have been utilized.
(Grant Funds Utilized / Total Available Grant Funds) x 100
Public Health
Immunization Rates
Percentage of the population that is immunized against specific diseases.
(Number of Immunized Individuals / Total Population) x 100
Hospital Readmission Rates
Percentage of patients readmitted to hospitals within a certain period.
(Number of Readmissions / Total Number of Discharges) x 100
Air Quality Index
Measurement of air pollution levels.
N/A
Access to Healthcare
Percentage of the population with access to healthcare services.
(Number of People with Access / Total Population) x 100
Infrastructure and Public Works
Road Condition Index
Percentage of roads in good, fair, or poor condition.
(Number of Roads in Good/Fair/Poor Condition / Total Roads) x 100
Water Quality Compliance
Percentage of water samples meeting safety standards.
(Number of Compliant Samples / Total Samples Tested) x 100
Waste Management Efficiency
Amount of waste recycled or properly disposed of as a percentage of total waste collected.
(Amount of Waste Recycled/Disposed / Total Waste Collected) x 100
Infrastructure Project Completion Rate
Percentage of infrastructure projects completed on time and within budget.
(Number of Completed Projects / Total Projects) x 100
Community and Social Services
Affordable Housing Availability
Number of affordable housing units available compared to the demand.
(Number of Affordable Units / Number of Units Needed) x 100
Unemployment Rate
Percentage of the labor force that is unemployed.
(Number of Unemployed / Total Labor Force) x 100
Social Service Program Participation
Number of residents participating in social service programs.
N/A
Library Usage
Number of library visits or number of items borrowed.
N/A
Environmental Sustainability
Energy Consumption
Total energy consumption by government facilities.
N/A
Green Space Availability
Percentage of land designated as parks or green spaces.
(Area of Green Space / Total Land Area) x 100
Renewable Energy Usage
Percentage of energy used that comes from renewable sources.
(Renewable Energy Used / Total Energy Used) x 100
Carbon Footprint
Total greenhouse gas emissions produced by government operations.
N/A
Education
Graduation Rates
Percentage of students who graduate from high school.
(Number of Graduates / Total Number of Students) x 100
Student-Teacher Ratio
Average number of students per teacher.
Total Number of Students / Total Number of Teachers
Literacy Rates
Percentage of the population that is literate.
(Number of Literate Individuals / Total Population) x 100
School Attendance Rates
Percentage of students attending school regularly.
(Number of Regular Attendees / Total Number of Students) x 100
Metrics are crucial in healthcare because they help track and measure how well care is being provided. By monitoring key indicators, healthcare providers can spot areas that need improvement, ensure they are meeting standards, and ultimately improve patient care. Metrics also guide decisions on how to best use resources and keep operations running smoothly.
Category
KPI Name
Definition
Formula
Clinical Performance
Patient Mortality Rate
Percentage of patients who die during their hospital stay or within a certain period after discharge.
(Number of Patient Deaths / Total Number of Patients) x 100
Hospital Readmission Rate
Percentage of patients readmitted to the hospital within 30 days of discharge.
(Number of Readmissions / Total Number of Discharges) x 100
Infection Rates
Incidence of hospital-acquired infections (HAIs) such as MRSA or C. difficile.
(Number of HAIs / Total Number of Patients) x 100
Surgical Complication Rate
Percentage of patients experiencing complications following surgical procedures.
(Number of Surgical Complications / Total Number of Surgeries) x 100
Patient Experience
Patient Satisfaction Score
Average score from patient satisfaction surveys, often measured using tools like HCAHPS.
Average Score from Surveys
Average Length of Stay (ALOS)
Average number of days a patient stays in the hospital.
Total Patient Days / Total Number of Patients
Patient Wait Times
Average time patients spend waiting to see a healthcare provider.
Total Wait Time / Number of Patients
Discharge Against Medical Advice (AMA) Rate
Percentage of patients who leave the hospital against medical advice.
(Number of AMA Discharges / Total Number of Discharges) x 100
Operational Efficiency
Bed Occupancy Rate
Percentage of hospital beds occupied at a given time.
(Number of Occupied Beds / Total Number of Beds) x 100
Staff-to-Patient Ratio
Number of healthcare staff members per patient.
Number of Staff / Number of Patients
Average Treatment Cost
Average cost incurred for treating patients.
Total Treatment Costs / Number of Patients Treated
Emergency Department (ED) Throughput
Average time from patient arrival to departure in the emergency department.
Total ED Time / Number of ED Patients
Financial Performance
Revenue Cycle Metrics
Measures such as days in accounts receivable (A/R), net collection rate, and claim denial rate.
Varies by Specific Metric
Operating Margin
Ratio of operating income to total revenue.
Operating Income / Total Revenue
Cost per Patient
Average cost incurred per patient visit or treatment.
Total Costs / Number of Patients
Charity Care and Bad Debt
Amount of care provided for which payment is not expected.
Total Charity Care + Bad Debt
Quality of Care
Medication Error Rate
Number of medication errors per 1,000 patient days.
(Number of Medication Errors / Total Patient Days) x 1,000
Treatment Adherence Rate
Percentage of patients following prescribed treatment plans.
(Number of Adherent Patients / Total Number of Patients) x 100
Preventive Care Measures
Rates of preventive measures such as vaccinations and screenings.
(Number of Preventive Care Measures Delivered / Total Eligible Population) x 100
Care Plan Compliance
Percentage of patients with completed and adhered-to care plans.
(Number of Compliant Care Plans / Total Number of Care Plans) x 100
Human Resources
Staff Turnover Rate
Percentage of staff leaving the organization within a specific period.
(Number of Departing Staff / Total Number of Staff) x 100
Staff Training and Development
Number of training hours per employee.
Total Training Hours / Number of Employees
Employee Satisfaction Score
Average score from employee satisfaction surveys.
Average Score from Surveys
Overtime Hours
Total overtime hours worked by staff members.
Total Overtime Hours
Regulatory Compliance
Accreditation Status
Compliance with standards set by accrediting bodies such as The Joint Commission.
N/A
Incident Reporting Rate
Frequency of reported incidents, including adverse events and near misses.
(Number of Incidents Reported / Total Number of Incidents) x 100
Compliance Audit Results
Scores or findings from internal and external compliance audits.
Audit Score or Finding
Patient Data Security Incidents
Number of data breaches or security incidents involving patient information.
To create a culture of KPI monitoring and improvement, it is essential to educate your team on the significance and use of KPIs. Ensure they understand that KPIs are tools for enhancement rather than enforcement. Additionally, establish a performance management system that is consistent, transparent, and straightforward.
Introducing KPIs into your work environment may initially present some challenges. Not everyone may fully understand what KPIs are and how they are used. Organize educational sessions to explain the concept of KPIs and highlight their importance for the organization's future.
Emphasize that KPIs are not enforcement tools designed to control behavior. For example, a customer service representative might see a KPI related to average handle time and assume that meeting the target is solely their responsibility, leading to anxiety about negative consequences if they fall short. It is crucial to correct this impression to prevent counterproductive behaviors.
Selecting the right KPIs is just the beginning; fostering a culture of monitoring, reporting, and continuous improvement is where the real work lies. To help your team embrace KPIs and motivate them to drive change, implement a performance management system that is:
Consistent: Ensure that KPI tracking and reporting are done regularly and uniformly across the organization.
Transparent: Make KPI data accessible to everyone, fostering an environment of openness and trust.
Simple: Keep the system easy to understand and use, so that employees can focus on their performance rather than navigating complex processes.
By taking these steps, you can create a supportive culture where KPIs are viewed as valuable tools for personal and organizational growth.
It is frequently said that “What gets measured gets done,” but how does the measuring itself get done? Below are the important steps to consider in effectively tracking KPIs as a part of your performance management framework:
Step 1: Select 1-2 Key Measures for Each Objective
While it's tempting to track every aspect of your operations, it's neither practical nor efficient. Focus on one or two critical metrics per objective that directly contribute to achieving your goals.
For example, if your objective is to improve employee training and development programs, measuring the percentage of trained employees or training hours might not be as effective as tracking the reduction in errors post-training, which directly correlates with skill development.
Tip for Selecting Metrics:
Lagging Indicators (Outcome KPIs): If you're unsure which activities drive results, measure the outcome. For instance, track 'sales' to see the impact of various promotional activities.
Leading Indicators (Driver KPIs): If you know what drives results, measure the activity. For instance, track 'order processing time' if quick order handling increases sales.
Does it align with our objectives and overall strategy?
Is it simple to define and understand?
Can it be measured accurately and timely?
Does it cover various perspectives (Customer, Financial, Internal Processes, Learning and Growth)?
Will it remain relevant in the future?
If the answer to many of these questions is "no," consider revising or replacing the KPI.
Step 3: Assign Responsibility for Each KPI
KPIs are more actionable when specific individuals are accountable for tracking and reporting them. This responsibility often motivates the person to ensure the KPI's success.
Data Collection: An analyst may collect the data.
Reporting and Analysis: A business leader should analyze and contextualize the data, explaining performance and driving improvements.
Step 4: Monitor and Report on the KPIs
Regularly review KPI performance—monthly, quarterly, or on another schedule. This helps identify periods of underperformance or overperformance and understand the contributing factors.
Consistent reporting to all relevant parties is crucial since many measures and goals are interconnected. Instead of using spreadsheets, which can lead to version control issues and errors, consider using performance management software like ClearPoint Strategy. Such tools allow you to create customizable KPI dashboards for different audiences, ensuring clarity and coherence across the organization.
KPI Selection Mistakes You Should Watch Out For
There are two common missteps made during the selection process:
Relying on outdated metrics: What worked in the past might not be relevant today.
Prioritizing easy over impactful: Tracking simple metrics might be convenient, but are they truly driving your strategic goals?
Effective KPI tracking involves more than just choosing the right metrics. KPI dashboards provide visual summaries of your data, making it easier to spot trends and communicate progress. Specialized software, such as ClearPoint, can streamline data collection, analysis, and reporting, saving you valuable time and resources.
However, be prepared for challenges along the way:
Data Quality: Inaccurate data can lead to faulty conclusions. Ensure your data sources are reliable and up to date.
Lack of Engagement: KPIs are only valuable if everyone understands and supports them. Communicate the purpose and benefits of tracking these metrics to foster buy-in.
Information Overload: Too much data can be overwhelming. Focus on the most critical KPIs that directly impact your goals.
Many organizations initially try to use spreadsheets to track KPIs, but this method often leads to issues such as version control conflicts and calculation errors. A better and simpler alternative is to use performance management software.
Tools like ClearPoint Strategy offer several advantages:
Customizable Dashboards: Create different dashboards for various departments and executive teams, providing tailored views of KPI performance.
Real-Time Data: Ensure that all team members have access to the most up-to-date information, reducing the risk of working with outdated data.
Improved Collaboration: Facilitate better communication and collaboration across departments by sharing consistent and accurate KPI reports.
By implementing performance management software, you can streamline the process of tracking and reporting KPIs, ultimately driving better performance and achieving your organizational goals.
None of this is to say you can’t use spreadsheets to view your KPI data, but with ClearPoint, you save time and improve the information available for decision-making.