KPI glossary

Conversion Rate is a measure of the success rate of turning customer leads or potential customers into actual customers.

Conversion Rate = (Number of Goal Achievements / Visitors) x 100

Customer Profitability is an indicator of how much profit a business is generating from individual customers. Customer profitability is basically a measure of the net dollar contribution made by individual customers to an organisation.

Customer Lifetime Value is an indicator of the financial value a customer provides over the lifespan of the entire customer relationship.

Customer Retention Rate is an indicator of customer loyalty (or the extent to which a company is able to keep acquired customers).

Customer Retention Rate (CRR) = Number of customers from the beginning of the period that remained customers at the end of a period / Number of customers at the beginning of a period.

Customer Turnover Rate measures customer loyalty through the rate at which acquired customers are leaving or not renewing.

Customer Turnover = Lost customers over period t / total number of customers at the end of period t

Delivery In Full, On Time (DIFOT) Rate is a measure of delivery reliability. It measures the percentage of deliveries that have been completed in full and on time.

Delivery in-full and on-time (DIFOT) = units or orders delivered in full on time / total units or orders shipped

First Contact Resolution (FCR) is a measure of the effectiveness with which a company is resolving customer queries. It basically measures the rate at which customer queries are resolved at first contact.

FCR Call Statistics (A) = (Total number of queries) / (Total number of calls) x 100

Market Growth Rate is a measure of the extent at which the market a company operates in is growing. This provides an insight into the size of the opportunity a company might have.

Market Growth Rate (%) = total sales in the market for this year /total sales in the market for last year

Market Share provides a measure of the relative share a business has in a given market compared to its competitors.

Relative Market Share (%) = organization's market share /largest competitor's market share.

The Net Promoter Score is a measure of customer satisfaction and customer loyalty. It is based on a single question: How likely is it that you would recommend [Company X or product Y or service Z] to a friend or colleague?

This question is then scored against a 10 point scale (0=Not at all likely, 10 Extremely likely). Responses between 0-7 are classified as detractors and responses between 9 and 10 as promoters.

Net Promoter Score = % of Promoters - % of Detractors

Online Share of Voice (OSOV) measures the relative share of online mentions of a brand (company or product) - especially in Social Media forums - relative to competitors.

OSOV = (Number of mentions for your brand / Number of mentions for your brand and all your competitor brands) x 100

360-Degree Feedback Score is a measure of people performance through the eyes of other employees (both bosses and subordinates). It is a multi-item measure that could include measures of skill and capability, leadership, etc

Absenteeism Bradford Factor is a measure of the level of unauthorised employee absence from work.

Bradford Factor = Dt x Et x Et

Dt = Total number of days of unplanned absence
Et = Total number of individual spells or episodes of absense

Average Applications to Open Posts helps to measure how attractive a company is as a potential employer. Average Applications to Open Posts can be measured by job families and compared across sectors.

Average Employee Tenure is a measure of the time employees tend to stay with a particular company. Employee tenure can provide insights into employee loyalty, employee satisfaction as well as the freshness level of the workforce.

Average Employee Tenure = Sum of all tenures / number of full-time employees

Diversity Index is usually a multi-item measure to establish the diversity profile of the workforce. Based on the strategic needs of a business, measures could include gender, ethnicity, social and cultural background, as well as education levels.

Employee Churn Rate is a measure of the level of staff retention in a business.

Employee Churn Rate = Total number of leavers over period / Average total number employed over period

Employee Core Competency Profile is an indicator that helps companies understand the extent to which they have the appropriate skills and competencies.

Employee Engagement Level is a multi-item measure of how engaged employees are in their job. Depending on the organisational priorities measures could include recognition, goal clarity, contribution, learning, etc.

Employee Satisfaction Index is a multi-item measure of how satisfied employees are. Depending on the organisational priorities, it can include measures such as leadership, career progression, training, company culture, conditions and pay.

Executive-to-Employee Pay Ratio is a measure of the gap between top level and entry level remuneration and therefore an indicator of remuneration fairness.

Executive-to-Employee Pay Ratio = (Px / Pe) / 1

Where Px = CEO Pay and Pe = Pay for lowest paid worker

Human Capital Value Added (HCVA) is a measure of the extent to which employees add value to the business.

HCVA = Revenue - (Total Costs - Employment Cost) / Full Time Employees

Leaver Attitude Score measures the attitude of employees who leave the organisation or their current the job. The data for the Leaver Attitude Score is usually derived from a from completed at an exit interview. Attitudes can be scored on different dimensions.

Performance Review Completion Factor is a measure of the extent to which employees receive regular performance and career development reviews.

Performance Review Completion Factor = (Rc / Ra) x 100

Rc = total number of performance reviews completed in a given time period
Ra = total number of employees that should have received a performance review in that same time period

Revenue per Employee is an indicator of how much revenue is generated per employee - and therefore an important productivity ratio.

Revenue per Employee = Revenue / Number of (full time equivalent) Employees

Salary Competitiveness Ratio (SCR) is a measure of how competitive the current salary is that a company offers for specific job roles. Salary competitiveness can be measured against specific competitors or against the general market.

Salary Competitiveness Ratio (competitor) = Salary offered by your company / Salary offered by your competitor

Salary Competitiveness Ratio (industry) = Salary offered by your company / Average Salary offered in the industry or sector

Staff Advocacy Score is a measure of the extent to which employees are advocates of the business. It can be measured by asking a simple question: "How likely is it that you would recommend this company as an employer to a friend?"

Strategy Awareness Level measures the percentage of the workforce that are aware of the corporate (or business unit) strategy. Strategy Awareness Level is usually measured as part of an employee survey or a performance review.

Strategy Awareness Level = (Employees that are aware of the strategy / Number of Full-Time-Equivalent Employees) x 100

Time Lost due to Accidents or Injuries is an indicator of safety in the operational environment of a business and indicates the risks of accidents

Time Lost Due to Accidents or Injuries (LTI) = number of man days lost due to accidents or injury in a period/total hours worked in this period

Time to Hire is a recruitment indicator that shows how long it takes to fill vacant posts.

Time to Hire = Elapsed time between Time of posting and Time to Start

Training Return on Investment is a measure of training effectiveness. It measures the return a company gets from providing training. It is usually measured using a multi-scale approach to cover different benefit levels.

Carbon Footprint is a measure of the level of harmful greenhouse gas emissions a company produces. An organization's carbon footprint can be broken down into the primary and secondary footprints. The primary footprint is the sum of direct emissions of greenhouse gases from the burning of fossil fuels for energy consumption and transportation. The secondary footprint is the sum of indirect emissions of greenhouse gases during the lifecycle of products used by an individual or organization.

Energy Consumption is a measure of how much energy a company is consuming which can be measured by the amount of energy purchased from an energy supplier in a given period.

Product Recycling Rate measures the proportion of the products a company sells that is recycled or reused.

Product Recycling Rate = [Amount of products recycled or reused / Total amount of products sold] x 100

Saving Levels Due to Conservation and Improvement Efforts measures the total level of savings (in carbon emissions, water usage, energy usage or costs) generated from the conservation and improvement projects identified.

Supplier Environmental Sustainability Index is an indicator that measures the environmental performance of suppliers. It usually is a multi-item measure including elements such as energy consumption, carbon emissions, waste levels, and water usage, among others.

Supply Chain Miles measures the distance goods (or services) have travelled across the supply chain of a business.

Supply Chain Miles = Distance between location of production and the location of the final delivery

Waste Recycling Rate measure to what extent a company is able to recover waste it is generating for reuse or recycling.

Waste Recycling Rate = [Amount of waste recycled or reused / Total waste produced] x 100

Waste Reduction Rate is a measure of the level to which a company is able to reduce the waste it is generating as part of its operations.

Waste Reduction Rate = [Wasted Raw Material (in this period a) / Wasted Raw Material (in the last period b)] x 100

Water Footprint is a measure of the total level of freshwater consumption for the direct or indirect operation of the business.

Acquisition Retention Spending Ratio provides companies with an insight into the amount they spend to acquire new customers compared to the amount they spend to retain. In most industries it is significantly more expensive to acquire new customers.

Acquisition Retention Spending Ratio = Spending to acquire new customers / spending to retain existing customers

CAPEX to Sales Ratio measures the level of investments a company is making into its future. It compares the capital expenditure (CAPEX) to sales in a given period.

CAPEX to Sales Ratio = (CAPEX in period t / Net Sales in period t) x 100

Cash Conversion Cycle is a measure of how healthy the cash flow position of a business is. The Cash Conversion Cycle metric basically measures the length of time it takes convert its goods and services into actual cashflow.

CCC = DIO + DSO - DPO

Where:

DIO represents days inventory outstanding

DSO represents days sales outstanding

DPO represents days payable outstanding

Cost Avoidance Score is a measure that helps to assess to what extent implemented cost reductions are realized. When companies embark on a cost reduction programme they need to establish whether actual savings have been made at the end of the programme.

Cost to Serve (by customer or segment) is a measure that helps to understand the profitability of a customer account (or segment) by assigning costs of serving this customer based on the level of activity and overhead costs incurred by this customer.

Cross-Selling Success Rate measures the percentage of upselling attempts or opportunities that are successful and sales are made.

Cross-Selling Success Rate = (Number of Successful Cross-Sales / Number of Cross-Selling Attempts (or Opportunities)) x 100

Customer Lifetime Value is an indicator of the financial value a customer provides over the lifespan of the entire customer relationship.

Customer Profitability is an indicator of how much profit a business is generating from individual customers. Customer profitability is basically a measure of the net dollar contribution made by individual customers to an organisation.

D/E Ratio stands for Debt to Equity Ratio and provides an insight into the extent to which a business is financed through debts versus equity.

Debt-to-Equity (D/E) Ratio = Total Liabilities / Total Equity

Direct Product Profitability (DPP) measures profitability by product and therefore provides insights into the differing profitability levels of the products or services a company offers.

DPP = unit sales volume x the profit margin of the product

EBIT stands for earnings before interest and taxes. By taking interest payments and income taxes away from the profit figure it basically eliminates the effects of the different capital structures and tax rates used by different companies.

EBIT is very closely related to operating profit and often the same.

EBIT provides a profitability figure that is better comparable across companies. A further evolution is also taking out depreciation and amortization (see EBITDA).

EBIT = Revenue - Operating Expenses

EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortisation. It is a widely used operational profitability measure that allows comparing companies without the potentially distorting effects and possible manipulations of financing and accounting decisions.

To measure EBITDA you simply take the sales revenue and subtract all expenses other than interest, taxes, depreciation, and amortization.

EBITDA = Revenue - Expenses (excluding interest, tax, depreciation and amortization)

Energy Consumption is a measure of how much energy a company is consuming which can be measured by the amount of energy purchased from an energy supplier in a given period.

EVA (or Economic Value Added) is a measure of a company's economic profit. The indicator was developed and copyrighted Stern-Stewart. Central to the EVA measure is the idea that companies have to take into account the cost of capital (for both equity and debts) before they can make a judgement on whether the company has added real economic value or not.

The argument is that here is an opportunity cost of capital, i.e. instead of investing into a specific company of business venture, investors could put their money in other places such as Government bonds, the bank or equity markets). In order to identify true economic value it is therefore important to deduct the cost of capital (opportunity costs).

EVA= NOPAT - (C x K)

Where:

NOPAT is Net Operating Profit after Tax

C is the Weighted Average Cost of Capital (WACC), which represents the rate that a company is expected to pay on average to all its security holders to finance its assets

K is the economic capital employed

Gross Profit Margin puts the direct costs of producing products or services (also referred to as costs of goods sold) in relation to sales revenue to establish how efficient a company in in producing its goods or services.

For example, a gross profit margin of 20% indicates that for each dollar in sales, the company spent eighty cents in direct costs to produce the good or service that the firm sold.

Gross Profit Margin = ((Revenue - Cost of Goods Sold) / Revenues) x 100

Human Capital Value Added (HCVA) is a measure of the extent to which employees add value to the business.

HCVA = Revenue - (Total Costs - Employment Cost) / Full Time Employees

IT Cost as a Percentage of Revenue is one of the most common measures of the efficiency of IT operations.

Total spend on IT (comprising hardware, software, hardware and networking costs - including outsourcing costs) as a percentage of annual revenues (sales)

IT Project Cost Variance is an indicator of the extent to which projects are delivered within budget.

Project Cost Variance (PCV) = SPC - APC

Where SPC is the Scheduled Project Costs

And APC is the Actual Project Costs

Earnings (also referred to as net income or net profit) measures how much money a company has earned from doing business over a given period of time (usually a year).

Earnings shows what is left from the money a company has earned (revenue) after subtracting all expenses.

In accounting terms it is often referred to as the "bottom line" (because it is reported at the bottom of an income statement).

Net earnings = Total Revenue - Total Expenses (including operating expenses, financing costs and taxes)

Net income (also referred to as net profits or net earnings) measures how much money a company has earned from doing business over a given period of time (usually a year).

Net profit shows what is left from the money a company has earned (revenue) after subtracting all expenses.

In accounting terms it is often referred to as the "bottom line" (because it is reported at the bottom of an income statement).

Net Income = Total Income - Total Expenses (including operating expenses, financing costs and taxes)

Net Income Margin (also referred to as return on sales or net profit margin) measures how much profit a company makes for each dollar in revenue. While the net profit will give us the actual amount of money earned, the net income margin gives us a percentage. This in turn provides us with a measure we can now use to compare companies or business units.

Net income margin is an important indicator measuring how efficient a company (or business unit) is and how well it is able to control its costs.

Net Income Margin = (Net Income/ Revenues) x 100

Net profit (also referred to as net income or net earnings) measures how much money a company has earned from doing business over a given period of time (usually a year).

Net profit shows what is left from the money a company has earned (revenue) after subtracting all expenses.

In accounting terms it is often referred to as the "bottom line" (because it is reported at the bottom of an income statement).

Net Profit = Total Revenue - Total Expenses (including operating expenses, financing costs and taxes)

Net Profit Margin (also referred to as return on sales or net income margin) measures how much profit a company makes for each dollar in revenue. While the net profit will give us the actual amount of money earned, the net profit margin gives us a percentage. This in turn provides us with a measure we can now use to compare companies or business units.

Net profit margin is an important indicator measuring how efficient a company (or business unit) is and how well it is able to control its costs.

Net Profit Margin = (Net Profit / Revenues) x 100

Operating Expense Ratio is an indicator of how well a company is managing the ongoing costs of operating the business. It takes the operating expenditure (OPEX) and divides them by sales in a given period.

Operating Expense Ratio = (OPEX in period t / Sales Revenue in period t) x 100

Operating Profit Margin (often shortened to just Operating Margin) provides an indicator of the operating efficiency and / or pricing strategy of a business.

It divides the operating income by revenue to identify the proportion of the revenue that remains after taking out the costs of operating the business (such as labour costs, material supplies, overheads, marketing, admin, etc.).

Operating Profit Margin = (Operating Profit / Revenue) x 100

P/E Ratio stands for Price Earnings Ratio which provides an insight into the extent that the current share price of a company is attractive to investors. It basically measures the price an investor is paying for $1 of the company's earnings.

P/E ratio = Current Price Per Share/Earnings Per Share

Percentage Revenue by Major Customer measures a company's profitability on a per-customer basis to establish how important individual customers are relative to the overall customer based.

Quotation Conversion Rate measures the success rate (percentage) a company achieves of converting quotes for business into actual orders.

Quotation Conversion Rate = (Number of Successful Quotes / Number of Quotes submitted) x 100

Return on Innovation Investment measures the returns generated from investments in innovation.

Return on Innovation Investment = [(Net Profit from new products and services) - (innovation costs for these products and services)] / (innovation costs for these products and services)

Return on Sales (also referred to as net profit margin or net income margin) measures how much profit a company makes for each dollar in revenue. While the net profit will give us the actual amount of money earned, the return on sales gives us a percentage. This in turn provides us with a measure we can now use to compare companies or business units.

Return on sales is an important indicator measuring how efficient a company (or business unit) is and how well it is able to control its costs.

Return on Sales = (Net Profit / Revenues) x 100

Revenue (also referred to as turnover or sales) is simply the income that a company receives from its normal business activities, usually the sale of goods and or services.

In accounting terms revenue represents the "top line," to denote how it is reported on an income statement (at the very top). The "bottom line," denotes net profit (what is left from the revenues once all expenses are deducted).

Generally revenue might be understood as income received by an organization in the form of cash or cash equivalents. However sales revenue can be described as income received from selling goods or services over a given period of time.

Total Revenue = Price of goods or services x Quantity sold

Revenue Growth Rate is an indicator of how well a company is able to grow its sales revenue over a given time period. While the revenue is an actual number, the revenue growth rates simply compares the current sales figures (total revenue) with a previous period (typically quarter to quarter or year to year).

This provides an indicator that allows easier comparisons between different firms (especially in the same industries or markets) and provides a measure of the extent to which a company is able to grow.

Revenue Growth Rate = Revenue this period / revenue previous period

Revenue per Employee is an indicator of how much revenue is generated per employee - and therefore an important productivity ratio.

Revenue per Employee = Revenue / Number of (full time equivalent) Employees

Revenue per User (RPU) measures a company's profitability on a per-user basis. You simply take overall revenue and divide it the total number of users or customers.

RPU = Total Revenue / Total Users (Customers)

Risk Appetite vs Exposure is an indicator that help organisations understand how well they ar dealing with the risk agenda. Risk appetite can be defined as the amount and type of risk that an organization is prepared to seek, accept or tolerate. Risk exposure is the extent to which an organization is subject to risk events.

Risk likelihood versus consequence is an indicator that help organisations understand how well they are dealing with the risk agenda. Likelihood is simply how likely the risk is to materialize, whereas consequence is the impact on the organization (not just financial, but also operational and reputational and, in some instances, its licence to operate.

ROA stands for Return on Assets and measures a company's profitability relative to the assets it owns. By comparing the income in a given period to the total assets a company controls ROA provides an insight into the ability of a business to generate money from the machinery, equipments, buildings etc. it has.

ROA = (Net Income during period t / Total Assets at the end of period t) x 100

ROCE stands for Return on Capital Employed and is a measure of the return a company generates from the capital invested in the business. The measure basically compares earnings with the capital employed to provide an insight into how well a business has used its capital investments to generate income.

ROCE uses the reported (period end) capital numbers. A variation of this metric is Return in Average Capital Employed (ROACE) which uses the average of the opening and closing capital for the period.

ROCE = EBIT / Total capital employed

Return on Investment (ROI) (also referred to as the Rate of Return or Rate of Profit) is a simple financial indicator to evaluate the efficiency of an investment or to compare the efficiency of a number of different.

ROI is a measure of the money gained from an investment compared to the amount of money invested. 

ROI = (gain from Investment - cost of investment) / cost of investment

Sales (also referred to as turnover or revenue) is simply the income that a company receives from its normal business activities, usually the sale of goods and or services.

In accounting terms revenue represents the "top line," to denote how it is reported on an income statement (at the very top). The "bottom line," denotes net profit (what is left from the revenues once all expenses are deducted).

Generally sales might be understood as income received by an organization in the form of cash or cash equivalents. However sales revenue can be described as income received from selling goods or services over a given period of time.

Total Sales = Price of goods or services x Quantity sold

Sales by Channel is an indicator that breaks sales down by the channel through which the sales were generated. This provides an insight into the effectiveness of different channels such as direct sales, shops, online, etc.

Sales Volume Projection measures the projected or expected volumes of sales over a future period. It is basically a measure of the order book a company has plus any sales a company is sure to secure.

Saving Levels Due to Conservation and Improvement Efforts measures the total level of savings (in carbon emissions, water usage, energy usage or costs) generated from the conservation and improvement projects identified.

Total Shareholder Return (TSR) measures the earnings of a share to the shareholder by taking into account the share price movements (or net stock price change) plus the dividends paid during a given period (typically one year).

Using TSR as a measure of performance allows investors to compare companies across sectors. TSR is only meaningful relative to other companies as it will fluctuate with the stock markets.

TSR = (Share Price at the end of period - Share Price at the beginning of period + Dividends) / Share Price at the beginning of period

Turnover (also referred to as revenue or sales) is simply the income that a company receives from its normal business activities, usually the sale of goods and or services.

In accounting terms revenue represents the "top line," to denote how it is reported on an income statement (at the very top). The "bottom line," denotes net profit (what is left from the revenues once all expenses are deducted).

Generally turnover might be understood as income received by an organization in the form of cash or cash equivalents. However sales revenue can be described as income received from selling goods or services over a given period of time.

Total Turnover = Price of goods or services x Quantity sold

Upselling Success Rate measures the percentage of upselling attempts or opportunities that are successful and sales are made.

Upselling Success Rate = (Number of Successful Up-Sales / Number of Upselling Attempts (or Opportunities)) x 100

Working Capital Ratio (also referred to as current position) is a measure of how much liquid assets a business has available at any given time. Working Capital Ratio takes the assets available and subtracts any current liabilities.

Working Capital = current assets - current liabilities

Average age of IT Infrastructure measures the average age of the IT infrastructure in place. Old or aging IT infrastructure can indicate up-coming up-grade costs or potential issues with IT performance.

Average age of Software measures the average age of the software in use. Old or aging software applications can indicate up-coming up-grade bills or potential issues with software performance and compatibility.

Enterprise Architecture Compliance Ratio measures the extent to which IT projects are compliant with the Enterprise Architecture (a conceptual blueprint of the structure and operation of an organization).

Enterprise Architecture Compliance Rate = (Number of IT project deemed compliant to EA in time period t) / (Total number of proposed IT project in time period t) x 100

Help Desk First Call Resolution (HD FCR) is a measure of the effectiveness of the IT help desk

FCR Call Statistics (A) = (Total number of queries) / (Total number of calls) x 100

Agent Logs:

FCR Call Statistics (B) = (Number of resolved incidents closed on the first contact) / (total number of incidents) x 100

Incident Resolution Index measures the incidents that are resolved within the Service Level Agreement. Incidents can refer to infrastructure incidents or incidents with applications. Both can be measured and reported separately.

Incident Resolution Index = Incidents resolved within SLA / Total Incidents

Internal Service Satisfaction Score measures the level of satisfaction with the IT services provided. Satisfactions should be measured against the range of solutions and services delivered by the IT function such as:

• Satisfaction with the IT functions business partnering capabilities
• Satisfaction with support processes and other support initiatives such as awareness and training
• Satisfaction with IT infrastructure services
• Satisfaction with IT applications solutions

IT Cost as a Percentage of Revenue is one of the most common measures of the efficiency of IT operations.

Total spend on IT (comprising hardware, software, hardware and networking costs - including outsourcing costs) as a percentage of annual revenues (sales)

IT Maintenance Ratio provides an insight into how much money as a percentage of the IT budget is devoted to maintenance (as opposed to e.g. development).

IT Maintenance Ratio = IT budget / costs devoted to 'maintenance'

IT Project Cost Variance is an indicator of the extent to which projects are delivered within budget.

Project Cost Variance (PCV) = SPC - APC

Where SPC is the Scheduled Project Costs
And APC is the Actual Project Costs

IT Project Earned Value (IT EV) measures the extent to which projects are making the desired progress. It allows companies to understand how much work has been completed as well as the costs of the work, both in relation to the project expectations.

EV = % complete x BCWP

Where BCWP is the Budgeted Cost of Work Performed = the total budgeted costs for labour and resources for the project.

Performance Level = (ACWC / EV) x 100

Where ACWC is the Actual Cost of Work Scheduled or the total amount in labour and resources that has been spent on the project to date.

IT Project Schedule Variance is a measure of the extent to which projects are delivered on schedule.

Project Schedule Variance = SCT - ACT

Where ACT is the Actual Completion Time
And SCT is the Scheduled Completion Time

Number of IT Security Breaches is an indicator that will give companies a feel of how vulnerable they are to cyber-attacks and how secure their information infrastructure is. The formula for number of security attacks is a straight forward adding up of all incidences in a given time period.

System Downtime measures the extent to which IT systems are available when they are needed.

System Downtime = Planned Operating Time in time period t - Actual Operating Time in time period

Website Non-Availability measures the time that a website is not available. Downtime is calculated for individual URLs but multi-step processes such as shopping with card payment or user registrations can be identified as 'non-available' if one of the steps is not functioning. The software automatically verifies the server status, downloads the full HTML content and measures the response time of the specified website.

Capacity Utilisation Rate measures the extent to which a company is leveraging its full production or work potential. It puts the actual capacity in relation to the possible capacity.

Capacity Utilisation Rate = (Actual Capacity in time period t / Possible Capacity in time period t ) x 100

Carbon Footprint is a measure of the level of harmful greenhouse gas emissions a company produces. An organization's carbon footprint can be broken down into the primary and secondary footprints. The primary footprint is the sum of direct emissions of greenhouse gases from the burning of fossil fuels for energy consumption and transportation. The secondary footprint is the sum of indirect emissions of greenhouse gases during the lifecycle of products used by an individual or organization.

Cost Avoidance Score is a measure that helps to assess to what extent implemented cost reductions are realized. When companies embark on a cost reduction programme they need to establish whether actual savings have been made at the end of the programme.

Cost to Serve (by customer or segment) is a measure that helps to understand the profitability of a customer account (or segment) by assigning costs of serving this customer based on the level of activity and overhead costs incurred by this customer.

Delivery In Full, On Time (DIFOT) Rate is a measure of delivery reliability. It measures the percentage of deliveries that have been completed in full and on time.

Delivery in-full and on-time (DIFOT) = units or orders delivered in full on time / total units or orders shipped

Earned Value (EV) measures the extent to which projects are making the desired progress. It allows companies to understand how much work has been completed as well as the costs of the work, both in relation to the project expectations.

EV = % complete x BCWP

Where BCWP is the Budgeted Cost of Work Performed = the total budgeted costs for labour and resources for the project.

Performance Level = (ACWC / EV) x 100

Where ACWC is the Actual Cost of Work Scheduled or the total amount in labour and resources that has been spent on the project to date.

Energy Consumption is a measure of how much energy a company is consuming which can be measured by the amount of energy purchased from an energy supplier in a given period.

First Contact Resolution (FCR) is a measure of the effectiveness with which a company is resolving customer queries. It basically measures the rate at which customer queries are resolved at first contact.

FCR Call Statistics (A) = (Total number of queries) / (Total number of calls) x 100

First Pass Yield (FPY) is a measure of the operational efficiency. It basically measures the percentage of items that are moving through a process without any problems.

First Pass Yield (process q)= FPY (process step a) x FPY (process step a) x FPY (process step a) x … x FPY (process step 'n')

Incident Resolution Index measures the incidents that are resolved within the Service Level Agreement. Incidents can refer to infrastructure incidents or incidents with applications. Both can be measured and reported separately.

Incident Resolution Index = Incidents resolved within SLA / Total Incidents

Innovation Pipeline Strength (IPS) is an indicator of how strong the innovation pipeline of a company is. It measures the potential future revenue potential of the innovation projects in progress.

IPS = Sum (Innovation project x Future Revenue Potential)

Inventory Shrinkage Rate is a measure of inventory control. It measures the percentage of inventory that is lost between the initial production and the point it is sold. Reasons for shrinkage can include breakages, spillages, misplacements, perished goods, as well as internal and external theft.

Inventory Shrinkage Rate = (IV1 - IV2) / IV1

Where:
IV1 is the inventory you should have according to your records
IV2 is the actual inventory you have

Machine Downtime Level measures the extent to which an operational process is available and running.

Machine Downtime Level = (TA t / PPT t) x 100

Where:
PPT t is the planned productive time that a machine should be available in a given time period t.
TA t is the actual productive time that a machine has been available in a given time period t.

Number of Near Misses is an indicator of safety in the operational environment of a business and indicates the risks of accidents. To measure it companies have to simply start recording near misses.

Overall Equipment Effectiveness (OEE) measures the extent to which existing machines and equipment is producing the desired output. Overall Equipment Effectiveness (OEE) is a composite KPI that measures output based on capacity taking into account process availability, efficiency and quality.

OEE = Availability x Performance x Quality

Operating Expense Ratio is an indicator of how well a company is managing the ongoing costs of operating the business. It takes the operating expenditure (OPEX) and divides them by sales in a given period.

Operating Expense Ratio = (OPEX in period t / Sales Revenue in period t) x 100

Order Fulfillment Cycle Time measures the time it takes from customer order to the receipt of the product or service by the customers. It therefore provides an insight into the internal efficiency and supply chain effectiveness.

Order Fulfillment Cycle Time = Source Cycle Time + Make Cycle Time + Delivery Cycle Time

Process Downtime Level measures the extent to which an operational process is available and running.

Process Downtime Level = (TA t / PPT t) x 100

Where:
PPT t is the planned productive time that a process should be available in a given time period t.
TA t is the actual productive time that a process has been available in a given time period t.

Process Waste Level is an indicator of the extent to which a company's processes are lean and effective.

Measuring the waste depends on the metrics used for each waste type, but usually consists of simple counting or measuring.

Product Recycling Rate measures the proportion of the products a company sells that is recycled or reused.

Product Recycling Rate = [Amount of products recycled or reused / Total amount of products sold] x 100

Project Cost Variance (PCV) is an indicator of the extent to which projects are delivered within budget.

Project Cost Variance (PCV) = SPC - APC

Where SPC is the Scheduled Project Costs
And APC is the Actual Project Costs

Project Schedule Variance (PSV) is a measure of the extent to which projects are delivered on schedule.

Project Schedule Variance (PSV) = SCT - ACT

Where ACT is the Actual Completion Time
And SCT is the Scheduled Completion Time

Quality Index is usually a multi-item measure that assesses key dimensions of operational and service quality. It might include metrics such as First Pass Yield, Defect rates, Delivery Performance, etc.

Regulatory Compliance Score is a measure that help to assess the extent to which companies are compliant with regulatory rules and regulations. It is usually measured using multi-item measures that depend on the regulatory requirements.

Return on Innovation Investment measures the returns generated from investments in innovation.

Return on Innovation Investment = [(Net Profit from new products and services) - (innovation costs for these products and services)] / (innovation costs for these products and services)

Rework Level measures the amount of rework that has to take place in a process and is therefore an indicator of internal operational efficiency. It simply measures the number or percentage of items that require rework.

Risk Appetite vs Exposure is an indicator that help organisations understand how well they ar dealing with the risk agenda. Risk appetite can be defined as the amount and type of risk that an organization is prepared to seek, accept or tolerate. Risk exposure is the extent to which an organization is subject to risk events.

Risk likelihood versus consequence is an indicator that help organisations understand how well they ar dealing with the risk agenda. Likelihood is simply how likely the risk is to materialize, whereas consequence is the impact on the organization (not just financial, but also operational and reputational and, in some instances, its license to operate.

SERVQUAL is a measure of the service quality a company provides to its customers. Based on a multi-item survey that takes into account both service expectations and service perceptions it provides an insight into the gap between the service level customers expect and their actual view of the service.

Six Sigma Level measures the extent to which a company's operational processes are error-free. The Six Sigma goal is that process defect or error rates will be no more 3.4 per one million opportunities.

Supplier Performance Score is a multi-idem measure that assesses the performance of suppliers on dimensions including bargaining power, dependence score, price, delivery, quality, service, etc)

Supplier Scorecard is a composite measure of supplier performance. It might take into account metrics such as delivery performance, quality, costs, etc. to create an index weighted according to the organisational priorities.

Supply Chain Miles measures the distance goods (or services) have travelled across the supply chain of a business.

Supply Chain Miles = Distance between location of production and the location of the final delivery

System Downtime measures the extent to which IT systems are available when they are needed.

System Downtime = Planned Operating Time in time period t - Actual Operating Time in time period

Time Lost due to Accidents or Injuries is an indicator of safety in the operational environment of a business and indicates the risks of accidents.

Time Lost Due to Accidents or Injuries (LTI) = number of man days lost due to accidents or injury in a period/total hours worked in this period

Time to Market measures how long it takes to get new products or services to a point where they are sold to customers.

Waste Recycling Rate measure to what extent a company is able to recover waste it is generating for reuse or recycling.

Waste Recycling Rate = [Amount of waste recycled or reused / Total waste produced] x 100

Waste Reduction Rate is a measure of the level to which a company is able to reduce the waste it is generating as part of its operations.

Waste Reduction Rate = [Wasted Raw Material (in this period a) / Wasted Raw Material (in the last period b)] x 100

Water Footprint is a measure of the total level of freshwater consumption for the direct or indirect operation of the business.

Acquisition Retention Spending Ratio provides companies with an insight into the amount they spend to acquire new customers compared to the amount they spend to retain. In most industries it is significantly more expensive to acquire new customers.

Acquisition Retention Spending Ratio = Spending to acquire new customers / spending to retain existing customers

Bounce Rate essentially represents a measure of website attractiveness. It measures the percentage of initial visitors to a website who "bounce' away to a different site, rather than continue on to other pages within the same site.

Brand Equity is a measure of the value a brand adds to an organisation's products or services. Brand equity can result in price premiums or customer loyalty.

Brand Persuasion Score measures the percentage of customers who say that the strength of the brand was a major influence of the purchasing decision. The measure is usually collected through a survey.

Click-Through Rate measures the amount of people who actually visit a company's website after key word searches (see also Search Engine Rankings) or in response to an advert.

Conversion Rate is a measure of the success rate of turning customer leads or potential customers into actual customers.

Conversion Rate = (Number of Goal Achievements / Visitors) x 100

Corporate Reputation is an indicator of the reputation a company has in the eyes of its customers, potential customers or the general public.

Cost per Lead is a measure of the costs for generating new customers.

Average cost per lead = total money spent on marketing campaign/ total leads generated

Cost to Serve (by customer or segment) is a measure that helps to understand the profitability of a customer account (or segment) by assigning costs of serving this customer based on the level of activity and overhead costs incurred by this customer.

Cross-Selling Success Rate measures the percentage of upselling attempts or opportunities that are successful and sales are made.

Cross-Selling Success Rate = (Number of Successful Cross-Sales / Number of Cross-Selling Attempts (or Opportunities)) x 100

Customer Online Engagement Level measures the level of engagement of customers with each other, a company or a specific brand, measured primarily by online interaction. Customer Online Engagement takes into account individual metrics such as duration of visits, frequency of visit, depth of visit, click-through rate as well as sales, downloads, recommendations, reviews, comments, etc.

First Contact Resolution (FCR) is a measure of the effectiveness with which a company is resolving customer queries. It basically measures the rate at which customer queries are resolved at first contact.

FCR Call Statistics (A) = (Total number of queries) / (Total number of calls) x 100

Klout Score is an indicator of social media influence (for companies or individuals). Taking into account Facebook, Twitter, LinkedIn, YouTube, and other forums, it provides a score between 0 and 100 which is based on a number of (constantly evolving) criteria including the size of your network, the level of interactions.

Market Growth Rate is a measure of the extent at which the market a company operates in is growing. This provides an insight into the size of the opportunity a company might have.

Market Growth Rate (%) = total sales in the market for this year /total sales in the market for last year

Market Share provides a measure of the relative share a business has in a given market compared to its competitors.

Relative Market Share (%) = organization's market share /largest competitor's market share.

Online Share of Voice (OSOV) measures the relative share of online mentions of a brand (company or product) - especially in Social Media forums - relative to competitors.

OSOV = (Number of mentions for your brand / Number of mentions for your brand and all your competitor brands) x 100

Page Views measures the total number of web pages viewed on the website and so is a general measure of how extensively the website is used. Average Page Views is one way of measuring visit quality.

Percentage Revenue by Major Customer measures a company's profitability on a per-customer basis to establish how important individual customers are relative to the overall customer based.

Quotation Conversion Rate measures the success rate (percentage) a company achieves of converting quotes for business into actual orders.

Quotation Conversion Rate = (Number of Successful Quotes / Number of Quotes submitted) x 100

Revenue per User (RPU) measures a company's profitability on a per-user basis. You simply take overall revenue and divide it the total number of users or customers.

RPU = Total Revenue / Total Users (Customers)

Revenue per User (RPU) measures a company's profitability on a per-user basis. You simply take overall revenue and divide it the total number of users or customers.

RPU = Total Revenue / Total Users (Customers)

Sales per Channel is an indicator that breaks sales down by the channel through which the sales were generated. This provides an insight into the effectiveness of different channels such as direct sales, shops, online, etc.

Sales Volume Projection measures the projected or expected volumes of sales over a future period. It is basically a measure of the order book a company has plus any sales a company is sure to secure.

Sales Volume Projection measures the projected or expected volumes of sales over a future period. It is basically a measure of the order book a company has plus any sales a company is sure to secure.

Search Engine Rankings measures the ranking a company's website achieves (in search engines such as Google) for specific relevant key word searches.

Social Networking Footprint is data collected through online tools that measure how consumers interact with a brand or a company on social media sites.

Upselling Success Rate measures the percentage of upselling attempts or opportunities that are successful and sales are made.

Upselling Success Rate = (Number of Successful Up-Sales / Number of Upselling Attempts (or Opportunities)) x 100

Website Non-Availability measures the time that a website is not available. Downtime is calculated for individual URLs but multi-step processes such as shopping with card payment or user registrations can be identified as 'non-available' if one of the steps is not functioning. The software automatically verifies the server status, downloads the full HTML content and measures the response time of the specified website.