KPIs, strategy & continuous improvement
KPI examples by department: sales, operations, finance, HR and more
Practical KPI examples with formulas for sales, operations, warehouse, production, finance, HR, customer service and IT, plus tips for choosing the right few.
Good KPIs are specific to what a department controls and connected to what the company is trying to achieve. The examples below are a menu, not a checklist. Pick five to eight per department that reflect your priorities, define them clearly and assign owners. For definition templates, see how to choose KPI software.
Sales
| KPI | Formula |
|---|---|
| Revenue vs. target | Actual sales ÷ target |
| Sales growth | (This period − same period last year) ÷ same period last year |
| Gross margin by salesperson or account | Gross profit ÷ sales |
| Pipeline coverage | Qualified pipeline value ÷ remaining target |
| Win rate | Deals won ÷ deals closed (won + lost) |
| New accounts | Number of new customers with first order |
| Key account retention | Key accounts retained ÷ key accounts at start |
Retail operations
| KPI | Formula |
|---|---|
| Same-store sales growth | Growth for stores open in both periods |
| Average basket value | Net sales ÷ transactions |
| Shrinkage rate | Inventory loss ÷ sales |
| Stock-outs of top items | Top items out of stock ÷ top items |
| Sales per labor hour | Net sales ÷ staff hours |
Warehouse and logistics
| KPI | Formula |
|---|---|
| Inventory record accuracy | Items counted with no variance beyond tolerance ÷ items counted |
| On-time in-full (OTIF) | Orders delivered on time and complete ÷ total orders |
| Order cycle time | Release to dispatch time |
| Cost per order shipped | Warehouse and delivery cost ÷ orders shipped |
See warehouse KPIs.
Production
| KPI | Formula |
|---|---|
| OEE | Availability × performance × quality |
| Output vs. plan | Actual output ÷ planned output |
| First-pass yield | Good units first time ÷ units started |
| Scrap rate | Scrap ÷ total production |
| Cost per unit vs. standard | Actual unit cost ÷ standard unit cost |
Finance
| KPI | Formula |
|---|---|
| Month-end close days | Working days to close |
| Days sales outstanding | Receivables ÷ sales × days |
| Days payables outstanding | Payables ÷ purchases × days |
| Cash forecast accuracy | Actual vs. forecast cash, by week |
| Budget variance | Actual − budget, by cost center |
| Overdue receivables | Receivables past due ÷ total receivables |
Human resources
| KPI | Formula |
|---|---|
| Turnover rate | Separations ÷ average headcount |
| 90-day retention | New hires still employed after 90 days ÷ new hires |
| Time to fill | Days from approved requisition to accepted offer |
| Absenteeism | Unplanned absence days ÷ scheduled work days |
| Overtime percentage | Overtime hours ÷ regular hours |
| Payroll accuracy | Payrolls without correction ÷ total payrolls |
| Training completion | Required trainings completed ÷ required |
Customer service
| KPI | Formula |
|---|---|
| First response time | Average time to first response |
| Resolution time | Average time to resolve |
| First-contact resolution | Issues resolved on first contact ÷ total |
| Customer satisfaction | Average survey score |
| Complaint rate | Complaints ÷ orders or customers |
IT and internal services
| KPI | Formula |
|---|---|
| SLA compliance | Tickets resolved within SLA ÷ total tickets |
| System uptime | Available time ÷ scheduled time |
| Backlog age | Average age of open tickets |
See internal helpdesk.
Choosing the right few
- Start from the company's priorities. Which outcomes does this department most influence?
- Mix leading and lagging indicators. Lagging (results) and leading (drivers) together show both where you are and where you are heading.
- Make sure the team can influence it. A KPI the team cannot affect demotivates.
- Check data availability. If you cannot measure it reliably and on time, fix the data first.
- Review annually. Retire KPIs that no longer drive decisions.
Where Cirquolus fits
Cirquolus KPI scorecards support metrics, targets, readings and ownership for each department, connected to operational reviews and improvement projects in Business Compass KPI.
Frequently asked questions
What is a good KPI?
A clearly defined, measurable indicator of an important outcome that the owning team can influence, with reliable data and a target.
How many KPIs should a department have?
Usually five to eight. More makes it hard to focus.
What is the difference between leading and lagging KPIs?
Lagging KPIs measure results after the fact, such as revenue. Leading KPIs measure drivers that predict results, such as pipeline coverage.
How often should KPIs be reviewed?
Operational KPIs weekly or monthly; strategic KPIs monthly or quarterly.
Bring this workflow to a Cirquolus demo.
Show us your current process, companies and branches. We will map it to the modules you need and propose a realistic rollout.