KPI – Key Performance Indicators

Key Performance Indicators, or KPIs, are a tool businesses use to measure just how effectively they are achieving their goals.

Using KPI metrics is a way for businesses to quantify their business objectives so they can regularly check up on their performance and determine where they are successful and where they need to improve. The KPIs a business follows will depend upon its particular industry, and while some metrics will be important across an organization, each department will also likely track KPI metrics specific to its own goals.

KPIs can be used within a company or department to track its goals and determine how best to fine tune its core practices to achieve the best results. They can also be used when working with outside clients. When companies begin a contract with one of their clients, the two organizations can agree on specific KPIs to track how successful the contract has been.

Although each department may track its own KPIs, those key indicators can also be valuable to other departments within the organization. Using specialized KPI tracking software, these results can be sent to a single dashboard with a real-time KPI reporting tool.

Smart Analytics

More and more business professionals are realizing that long sheets of bland data aren’t ideal for decision-making and presentations. In response to this, we developed Smart Analytics™, KPI software capable of creating simple dashboards that track a wide range of KPIs in an easy-to-understand, compelling visual format. Users have the ability to quickly create new KPI dashboards and drill deeper into numbers that explain exactly what is going on in the business.

Users have access to an extensive range of data that they can analyze granularly, granting them insight into very specific subsets of information. From there, managers can easily take all of these analyses and automatically convert them into a visual format—charts, tables, gauges, and presentations—which are easy for even non-technical workers to understand.

Smart Analytics™ will pay for itself with the insights it provides, pushing you to be a more empowered decision-maker. Request a free demo and watch our KPI tracking software change the way you do business.

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Examples of KPIs

The specific KPIs that you need to measure can differ greatly from industry to industry, but when it comes down to it, they are all tracked to aid in accomplishing the same goal: increasing your profit margin. Furthermore, most KPIs fall into one of the following four categories:

  • Revenue improvement
  • Cost reduction
  • Process cycle-time improvement
  • Increased customer satisfaction

To expand upon this, the following are KPI examples from real-life scenarios. Using these KPIs will benefit in reducing overheads, errors, delays and costs.

Business Process – Key Performance Indicators

The following are key metrics for gauging business process performance:

  • Percentage of processes where completion falls within +/- 5% of the estimated completion
  • Average process overdue time
  • Percentage of overdue processes
  • Average process age
  • Percentage of processes where the actual number assigned resources is less than planned number of assigned resources
  • Sum of costs of “killed” / stopped active processes
  • Average time to complete task
  • Sum of deviation of time (e.g. in days) against planned schedule of all active projects

Service Level Agreement (SLA) – Key Performance Indicators

The following are key metrics of SLA performance:

  • Percentage of service requests resolved within an agreed-upon/acceptable period of time
  • Cost of service delivery as defined in Service Level Agreement (SLA) based on a set period such as month or quarter
  • Percentage of outage (unavailability) due to implementation of planned changes, relative to the service hours
  • Average time (e.g. in hours) between the occurrence of an incident and its resolution
  • Downtime – the percentage of the time service is available
  • Availability – the total service time = the mean time between failure (MTBF) and the mean time to repair (MTTR)
  • Number of outstanding actions against last SLA review
  • The deviation of the planned budget (cost) is the difference in costs between the planned baseline against the actual budget of the Service Level Agreement (SLA)
  • Percentage of correspondence replied to on time
  • Percentage of incoming service requests of customers have to be completely answered within x amount of time
  • Number of complaints received within the measurement period
  • Percentage of customer issues that were solved by the first phone call
  • Number of operator activities per call – maximum possible, minimum possible, and average. (E.g. take call, log call, attempt dispatch, retry dispatch, escalate dispatch, reassign dispatch, etc.)
  • The number of answered phone call per hour
  • Total Calling Time per Day or week.
  • Average queue time of incoming phone calls
  • Cost per minute of handle time
  • Number of un-responded emails
  • Average after call work time (work done after call has been concluded)
  • Costs of operating a call centre / service desk, usually for a specific period such as month or quarter
  • Average number of calls / service requests per employee of call center / service desk within measurement period
  • Number of complaints received within the measurement period

Service Quality – Key Performance Indicators

The following are KPI reporting examples for gauging Service Quality performance:

  • Cycle time from request to delivery
  • Call length – the time to answer a call
  • Volume of calls handled – per call centre staff
  • Number of escalations how many bad
  • Number of reminders – how many at risk
  • Number of alerts – overall summary
  • Customer ratings of service – customer satisfaction
  • Number of customer complaints – problems
  • Number of late tasks – late

Efficiency – Key Performance Indicators

The following are KPI reporting examples indicating Efficiency performance:

  • Cycle time from request to delivery
  • Average cycle time from request to delivery
  • Call length
  • Volume of tasks per staff
  • Number of staff involved
  • Number of reminders
  • Number of alerts
  • Customer ratings of service
  • Number of customer complaints
  • Number of process errors
  • Number of human errors
  • Time allocated for administration, management, training

Compliance – Key Performance Indicators

The following are KPI examples for Compliance performance:

  • Average time lag between identification of external compliance issues and resolution
  • Frequency (in days) of compliance reviews

Budget – Key Performance Indicators

  • Sum of deviation in money of planned budget of projects

Index used in Key Performance Indicators

The following indices are used in KPI as indicators:

Tolerating: The user notices performance lagging within responses greater than T, but continues the process.
Frustrated: Performance with a response time greater than F seconds is unacceptable, and users may abandon the process.
Satisfied: The user is fully productive. This represents the time value (T seconds) below which users are not impeded by application response time.

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Intelligent KPI: An Example

KPI ExamplesCora SeQuence is an Intelligent Business Process Management Suite which provides quick access to KPI dashboards, assisting you in managing your business process efficiently.
Learn more about BPM software.

SeQuence BPM suite provides management with the KPI dashboards with intelligent analytics to ensure that operational processes are under efficient and effective control. For high visibility and real time control, SeQuence workflow software enables process owners and managers to create a dashboard relating to KPI. Corrective actions can be focused efficiently.

SeQuence integrates with Microsoft SQL Server Reporting Services, SharePoint and Office 365, enabling managers to analyze performance and determine trends for KPIs and SLAs.

Request a demo of Cora SeQuence and learn how you can obtain KPI visibility by optimizing your organization’s business processes and monitoring their performance effectively:

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