Stages in identifying KPI’s
The key stages in identifying KPIs are:
• Having a pre-defined business process (BP).
• Having requirements for the BPs.
• Having a quantitative/qualitative measurement of the results
and comparison with set goals.
• Investigating variances and tweaking processes or resources
to achieve short-term goals.
A KPI can follow the SMART criteria. This means the measure has
a Specific purpose for the business, it is Measurable to really
get a value of the KPI, the defined norms have to be Achievable,
the improvement of a KPI has to be Relevant to the success of the
organization, and finally it must be Time phased, which means the
value or outcomes are shown for a predefined and relevant period.
1. New customer acquisition
2. Demographic analysis of individuals (potential customers) applying
to become customers, and the levels of approval, rejections, and
3. Status of existing customers
4. Revenue generated by segments of the customer population.
5. Outstanding balances held by segments of customers and terms
6. Collection of bad debts within customer relationships.
7. Profitability of customers by demographic segments and segmentation
of customers by profitability.
Many of these customer KPIs are developed and managed with CRM software.Faster
availability of data is a competitive issue for most organizations.
For example, businesses which have higher operational/credit risk
(involving for example credit cards or wealth management) may want
weekly or even daily availability of KPI analysis, facilitated by
appropriate IT systems and tools.
This industry is growing with leaps and bounds. That is the reason
transportation especially air cargo is realizing the need of KPIs
in every aspect of the business. Some indicators are exemplified
• Delay Duration
• More Ground Time
• Availability (technical)
• H/I Deferred Items
• Aircraft on Ground
• Weather Delays
• Human Resources
• Daily Sales Outstanding
Supply Chain Management
Any business, regardless of size, can better manage supplier performance
with the help of KPIs robust capabilities, which include:
• Automated entry and approval functions
• On-demand, real-time scorecard measures
• Single data repository to eliminate inefficiencies and maintain
• Advanced workflow approval process to ensure consistent
• Flexible data-input modes and real-time graphical performance
• Customized cost savings documentation (CSD)
• Simplified setup procedures to eliminate dependence upon
Main SCM KPIs will detail the following processes:
• Sales forecasts
• Procurement and Suppliers
• Reverse Logistics
Suppliers can implement KPIs to gain an advantage over the competition.
Suppliers have instant access to a user-friendly portal for submitting
standardized cost savings templates. Suppliers and their customers
exchange vital supply chain performance data while gaining visibility
to the exact status of cost improvement projects and cost savings
Overall Equipment Effectiveness or OEE is a set of broadly accepted
non-financial metrics which reflect manufacturing success.
• Cycle Time
• Cycle Time Ratio