{"id":13415817,"url":"https://github.com/joelparkerhenderson/key-performance-indicator","last_synced_at":"2026-01-27T00:37:27.696Z","repository":{"id":148893913,"uuid":"73756739","full_name":"joelparkerhenderson/key-performance-indicator","owner":"joelparkerhenderson","description":"Key performance indicator (KPI) examples for metrics, measurements, objectives and key results 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Henderson (http://joelparkerhenderson.com)\n  * options: commentable\n--\u003e\n\n# Key Performance Indicator (KPI)\n\n\u003cimg src=\"README.png\" alt=\"Key Performance Indicator\" style=\"width: 100%;\"/\u003e\n\nContents:\n\n- [What is a KPI?](#what-is-a-kpi)\n- [How to define a KPI](#how-to-define-a-kpi)\n- [How to improve a KPI](#how-to-improve-a-kpi)\n- [Indicators](#indicators)\n- [Key Leading Indicator (KLI)](#key-leading-indicator-kli)\n- [Key Performance Measure (KPM)](#key-performance-measure-kpm)\n- [Measure vs. metric](#measure-vs-metric)\n- [The 7 habits of highly effective KPI users](#the-7-habits-of-highly-effective-kpi-users)\n- [Credits and links](#credits-and-links)\n\n\u003csubcontents\u003e\n\nExamples:\n\n* [KPI examples for business](examples/business/index.md)\n* [KPI examples for compliance](examples/compliance/index.md)\n* [KPI examples for devops](examples/devops/index.md)\n* [KPI examples for ecommerce](examples/ecommerce/index.md)\n* [KPI examples for efficiency](examples/efficiency/index.md)\n* [KPI examples for finance](examples/finance/index.md)\n* [Examples](examples/index.md)\n* [KPI examples for kanban](examples/kanban/index.md)\n* [KPI examples for programmers](examples/programmers/index.md)\n* [KPI examples for service level agreements (SLAs)](examples/service-level-agreements/index.md)\n* [KPI examples for service quality](examples/service-quality/index.md)\n* [KPI examples for value stream map (VSM) areas](examples/value-stream-map/index.md)\n* [KPI examples by Orcale Netsuite](examples/oracle-netsuite/)\n\n\u003c/subcontents\u003e\n\n\n## What is a KPI?\n\nA key performance indicator (KPI) is a type of performance measurement.\n\n* A KPI evaluates the success of an organization or activity.\n\n* Choosing the right KPIs needs good understanding of what is important to the organization.\n\nSuccess examples:\n\n* Repeated periodic achievement of an operational goal, such as 100% customer satistfaction, or zero defects, etc.\n\n* Making progress toward strategic goals.\n\nWikipedia pages:\n\n* [Performance indicator](https://en.wikipedia.org/wiki/Performance_indicator)\n\n* [Performance measurement](https://en.wikipedia.org/wiki/Performance_measurement)\n\nOur related guides that use KPIs:\n\n* [Strategic balanced scorecard](https://github.com/joelparkerhenderson/strategic_balanced_scorecard)\n\n* [System quality attributes](https://github.com/joelparkerhenderson/system_quality_attributes)\n\n\n## How to define a KPI\n\nTo define a KPI, you can cover these areas:\n\n* Title: use an exact name to avoid ambiguity\n\n* Objective: the relation of the indicator with the organizational objectives must be clear\n\n* Scope: state the areas of business and/or parts of the organization that are included and/or excluded.\n\n* Target: Benchmarks must be determined in order to monitor progress\n\n* Formula: the exact calculation of the indicator\n\n* Units: what is/are the unit(s) of measurement in use\n\n* Frequency: when is the indicator recorded and reported\n\n* Data source: the exact data sources involved in calculating a indicator value\n\n* Owner: the accountable person for the indicator\n\n* Comments: any outstanding issues regarding the indicator\n\n\n## How to improve a KPI\n\nTo improve a KPI, you can ask these questions:\n\n* Does it clearly define what constitutes success?\n\n* Does it clearly relate to a strategic objective and key result (OKR)?\n\n* Does it provide the information required to set SMART goals?\n\n* Does it accurately portray progress and probability of achieving both long-term strategic objectives and near-term milestones?\n\n* Does it identify the root causes of barriers?\n\n* Does it focus the organization on the priority improvement needs?\n\n* Does it drive the behavior and actions required to achieve the objectives?\n\n* Does it align work with value?\n\n\n## Indicators\n\n* Quantitative indicators: can be presented with a number.\n\n* Qualitative indicators: can't be presented as a number.\n\n* Leading indicators: predict the outcome of a process\n\n* Lagging indicators: present the success or failure post hoc\n\n* Input indicators: measure the amount of resources consumed during the generation of the outcome\n\n* Process indicators: represent the efficiency or the productivity of the process\n\n* Output indicators: reflect the outcome or results of the process activities\n\n* Practical indicators: interface with existing company processes.\n\n* Directional indicators: specifying how something is changing, such as getting better or worse.\n\n* Actionable indicators: sufficiently in an organization's control to effect change.\n\n* Financial indicators: used in performance measurement and when looking at an operating index.\n\n\n## Key Leading Indicator (KLI)\n\nA Key Leading Indicator (KLI) is a KPI that tends to show up earliest.\n\n\n## Key Performance Measure (KPM)\n\nA Key Performance Measure (KPM) is how you measure a KPI.\n\n\n## Measure vs. metric\n\nThere is overlap between a measure and a metric.\n\n* A measure is concrete, usually measure one thing, and are quantitative in nature (e.g. I have five apples).\n\n* A metric describe a quality and require a measurement baseline (I have five more apples than I did yesterday).\n\nExamples:\n\n* A measure can be useful for demonstrating workloads and activity\n\n* A metric can be useful for evaluating compliance, processes effectiveness, and measuring success against established objectives.\n\n\n## The 7 habits of highly effective KPI users\n\n[Link](https://mitsloan.mit.edu/ideas-made-to-matter/digital-business-needs-new-kpis-heres-why-they-matter)\n\n* \u003cb\u003eKPIs help lead as well as manage.\u003c/b\u003e KPIs are more than just “numbers to hit”, they are metrics that help leaders anticipate the future and develop informed business plans.\n\n* \u003cb\u003eKPIs align the organization.\u003c/b\u003e Selecting the right KPIs gets everyone in the organization on the same page, with both people and processes aligned to better serve customers’ needs. \n\n* \u003cb\u003eKPIs provide an integrated view of the customer.\u003c/b\u003e Framing KPIs around awareness and anticipation of customer needs enables firms to engage customers at various touchpoints.\n    \n* \u003cb\u003eKPI components inform decision-making.\u003c/b\u003e Organizations with the capability to analyze KPI data in real-time are better positioned to adjust priorities than organizations that can only conduct a retrospective analysis.\n\n* \u003cb\u003eKPI data is shared across business units.\u003c/b\u003e Success depends on cross-functional collaboration. Data visibility plays an important part in this collaboration, as managers need to see how their actions impact KPIs.\n\n* \u003cb\u003eKPIs aren’t allowed to proliferate indiscriminately.\u003c/b\u003e There is no “magic number” of KPIs, but fewer is generally better: focus on KPIs that drive business growth, such as 3 enterprise KPIs and 3 functional KPIs.\n\n* \u003cb\u003eKPIs serve as data sets for machine learning.\u003c/b\u003e  KPIs can “teach” machine learning models in order to improve performance over time. This allows models to input transactional data, then solve for long-term values.\n\n\n## Credits and links\n\n* [PNMsoft KPI Examples](http://www.pnmsoft.com/resources/bpm-tutorial/key-performance-indicators/)\n\n* [Metrics and Performance Measurement System for the Lean Enterprise](https://ocw.mit.edu/courses/aeronautics-and-astronautics/16-852j-integrating-the-lean-enterprise-fall-2005/lecture-notes/12_metrics.pdf)\n\n* [Speed, Accuracy, Quality, and Joy: Four areas every product manager should focus on to increase their team intelligence](https://productcoalition.com/four-areas-every-product-manager-should-focus-on-to-increase-team-intelligence-829bb9e269e2)\n\n* [Quora: What are good KPIs for programmers](https://www.quora.com/What-are-good-KPIs-for-programmers)\n\n* [MIT Sloan: Leading With Next-Generation Key Performance Indicators](https://sloanreview.mit.edu/projects/leading-with-next-generation-key-performance-indicators/)\n\n* [Selecting the right product metrics (KPIs) by A Smart Bear](https://longform.asmartbear.com/product-metrics/)\n","project_url":"https://awesome.ecosyste.ms/api/v1/projects/github.com%2Fjoelparkerhenderson%2Fkey-performance-indicator","html_url":"https://awesome.ecosyste.ms/projects/github.com%2Fjoelparkerhenderson%2Fkey-performance-indicator","lists_url":"https://awesome.ecosyste.ms/api/v1/projects/github.com%2Fjoelparkerhenderson%2Fkey-performance-indicator/lists"}