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Explore 30 key performance indicators (KPIs) across finance, HR, & more, to optimize your business processes efficiently.
Ted Jackson
August 27, 2024
Strategic Planning
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.
Ready to accelerate your time to results? Book a demo of ClearPoint today.
Example Key Performance Indicators (KPIs) to Copy
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 KPILists
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!)
- 68 Important Financial KPIs
- 48 Important HRKPIs and Measures
- 53 Important Customer KPIs
- 143 Local Government KPIs
- 108 Healthcare KPIs and Measures
30+ KPIs by Department
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. | Revenue - Expenses (Excluding Interest, Tax, Depreciation & Amortization) |
| Customer Lifetime Value (CLV) / Customer Acquisition Cost (CAC) | Assesses the ratio of customer lifetime value to acquisition cost. | Net Expected Lifetime Profit from Customer / Cost to Acquire Customer |
Claim your FREE eBook on 68 essential financial KPIs
Customer KPIs
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 |
Claim your FREE eBook on 53 important customer KPIs
Process KPIs
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. | Output / Input (e.g., Revenue per Employee) |
Claim your FREE 48 Human Capital KPI library
50+ Industry-Specific KPIs
Local Government
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 |
Download your FREE eBook on 142 Local Government KPIs
Healthcare
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. | Total Number of Data Security Incidents |
Get your FREE Healthcare 108 KPI library
How to Build Your KPI Strategy
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.
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How to Choose & Track KPIs
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.
Book a FREE1:1 demo of ClearPoint today.
Step 2: Ensure Your KPIs Meet Key Criteria
Effective KPIs should have specific characteristics. Consider these questions for each KPI:
- Can it be easily quantified?
- Can we influence change using this KPI?
- 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?
ClearPoint makes tracking metrics simple. Find out how in a FREE 1:1 demo.
About KPI Dashboard Software
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.
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