Example Template for Designing

Key Performance Indicators

Example 1 Example 2
Strategic Goal:
Name the strategic objective Grow Customer Satisfaction. Grow Our Profits.
(from the strategy map), which
is being assessed with (Customer Perspective) (Finance Perspective)
this indicator.

Audience / Access:
Name the key qudience for this Board of Directors and Board of Directors and
indicator and clarify who will Marketing Team. Finance Team.
have access rights to it.

Key Performance Question(s):

To what extent are our customers To what extent are we
Name the performance
question(s) this indicator is satisfied with our service? generating bottom-line results?
helping to answer.

How will and won't this indicator

be used?
Describe how the insights this
indicator generates willbe used
ond outline how this indicator
willnot be used.
The indicator will be used to
assess and report on our
customer success internally. It will
not be Used to assess
performance of individuals or to
determine bonus payments.
The indicator will be used to
assess and report financial
performance internally and
externally. It willalso be a key
indicator to determine
executive pay.

Indicator Name:
Pick a short and clear Net Promoter Score. Net Profit.
indicator name.

DataCollection Method:
Describe how the data will be
collected.
The data will be collected using a The data for the net profit
mail-based survey. metric is collected from the
income statement (or the finance
and accounting system).

ban Bernard Morr & Co

Example Template for Designing
Key Performance Indicators
Assessment/ Fomula/ Scale: NetProfit (S) =Sales revenue ($)
at all
Using o 0-10scole(Noot - Total Costs($).
Describe how performance levels likely to extremely likely)
will be determined. This can be How likely
participants answer:
qualitative, in which case the recommend us to o
assessment criteria need to be are you to
friend?
identified, or it con be numerical NPS = % of Promoters
or using a scale, in which case
(score 9.10)-5 of Detractors
the formula or scales with
(score 0-6).
categories need to be identified.

2020.
Targets and Performance $1,250,000 by the end of
Thresholds: 55% by the end of 2020.
ldentification of targets,
benchmarks,and thresholds for
traffic lighting.

Source of Data:
Fingnce and accounting system.
Describe where the data will Survey of existing customers.
come from.

Data Collection Frequency:

Describe how frequently is this Monthly data collection - Weekly.
indicator will be collected. If sampled 10% of our customer
possible, include a forward data base.
schedule.

Reporting Frequency:
Outline how frequently this Monthly. Weekly.
indicator will be reported to the
different oudiences
(if applicable).

Data Entry:
Name the person or role lan Miller - Marketing Assistant. Joe Blox (Finance Clerk).
responsible for collecting and
updating the data?

n Bernard Marr & Co.

Example Template for Designing
Key Performance Indicators
Expiry / Revision Date:
ldentify the date until when this
indicator will be valid to or when
it willhave to be revised.
Validate your KPI
How much will it cost?:
Estimate the costs incurred by
introducing and maintaining this
indicator.
How complete is this indicator?:
Briefly assess how well this
indicator is helping to answer
the associated key performance
question and identify possible
limitations
Possible unintended
consequences:
Briefly describe how this
indicator could influence the
wrong behaviors or how people
could cheat on this KPI. Briefly
Extra Notes
24 months.
Costs are significant, bt cheaper
than a tra ditional cUstomer
satisfaction survey.
It provides us with a nice simple
number, but the data should be
supplemented with unstructured
feedback about:
"What is particularly good?
" What could be improved?
People could possibly influence
cUstomers before they take the
survey or they could select
cUstomers that are likely to
respond positively.
Target to be revised annually.
The costs of producing the net
profit measure are low because
the data is readily avalable.
Net Profit is one of a range of
profitability metrics. However,
on its own it willnot give us the
full picture and can lead to short
term thinking. It willneed to be
seen over time and the
context of other measures such
as revenue, profit margin,
operatingprofit, return on assets
and return on equity.
The danger with net profit is that
people could cut costs to the
detriment of long-term
performance but deliver positive
shot term results.
Bernard Marr & Co.