Posts tagged "Key Performance Indicators"

Efficiency boost: top 10 essential production KPIs

November 15th, 2023 Posted by KPIs 0 thoughts on “Efficiency boost: top 10 essential production KPIs”

Key performance indicators (KPIs) are used to understand and improve performance across a diverse range of industries, departments, and teams. For companies that produce goods and commodities, KPIs are absolutely essential as they offer a detailed view of their performance—for both individual employees and the organization as a whole. Production capacity and adherence to production schedules are just a few examples of areas in such an industry where KPIs can be used.

The importance of KPIs is even more prominent nowadays, as production has slowed considerably across the globe, caused by various compounding issues such as semiconductor, iron ore, and chemical shortages just to name a few. Such problems must be dealt with, and a reliable way to determine if the implemented solutions are working is through the use of KPIs. 

On top of the production slowdown, many companies that produce goods and commodities are also dealing with the changes brought about by Industry 4.0 —chief of which is the issue of proper integration. New technology and old processes typically don’t mix, a maladjustment that is exacerbated by skills gaps. Fortunately, there are ways to close these gaps, namely through reskilling and upskilling. Reskilling and upskilling are both training-centric methodologies, requiring employees to learn new skills or update their existing skill sets to match the new technology they will be using. This is not enough, however, as the effectiveness of training must be measured, which is where the use of KPIs comes into play. 

Due to the importance of KPIs in production, The KPI Institute (TKI) has diligently collated the 10 most widely used production KPIs. This information comes from smartkpis.com, TKI’s comprehensive database comprising 21,334 KPIs, covering 16 functional areas and 25 industries. The top 10 production KPIs are as follows:

  1. % Production schedule attainment – Measures the rate at which the production target for a given time period has been attained.
  2. # Units per man-hour – Measures the number of completed units of a product realized per man-hour of work.
  3. % Production schedule adherence – Measures the deviation between the actual production units and the planned production units for the same period.
  4. % Production uptime – Measures the percentage of utilized operation time from the planned available production time.
  5. # Production plants – Measures the number of manufacturing plants (e.g. assemble lines) available and functional for the production process.
  6. % Recovery yield rate of returned products – Measures the percentage of product returns that were valued again from overall returned products.
  7. % Production capacity utilization – Measures the percentage of the production volume actually realized from the total production capacity.
  8. # Ideal run rate – Measures the theoretical ideal production rate expected to be achieved in optimal circumstances.
  9. # Production capacity – Measures the volume of products that one plant or company can produce with its actual resources in a specific timeframe.
  10. $ Penalties cost due to unsatisfied demand – Measures the penalty values generated by the inability to satisfy demand.

Keeping track of these metrics can prove pivotal to the survival and success of any production business. For a detailed breakdown of these KPIs, including how to calculate them and when to measure them, download the free poster on the TKI marketplace.

Inside the Top 10 Key Performance Indicators 2023: Expert Tips For Choosing The Right Metrics

August 9th, 2023 Posted by Publications 0 thoughts on “Inside the Top 10 Key Performance Indicators 2023: Expert Tips For Choosing The Right Metrics”

Key performance indicators (KPIs) are metrics that gauge how effectively a business meets its goals. They have diverse applications, including monitoring performance, evaluating employees, improving processes, managing projects, and ensuring compliance. 

Moreover, KPIs provide an unbiased assessment, leading to informed decision-making and a better understanding of business dynamics. Regardless of their specific use, KPIs are essential for effective business management. 

The KPI Institute analyzed the most viewed KPIs in the first quarter of 2023 on smartKPIs.com, the largest database of documented KPIs (+21,300 KPI examples) with 75,000 community members, in their most recently published whitepaper, “TOP 10 KEY PERFORMANCE INDICATORS 2023: Expert Tips For Choosing The Right Metrics.” These KPIs reflect key metrics that provide insights into various aspects of business performance. Analyzing these metrics helps organizations understand their operational efficiency, customer satisfaction, financial health, and employee performance. 

However, choosing the right KPIs continues to be a challenge as they should match the company’s strategy and targets. Based on findings from The KPI Institute’s 2022 State of Strategy and Performance Management Practice Report, KPI selection ranks among the top three most challenging processes for businesses globally, regardless of industry. KPI selection requires meticulous planning, analysis, and cooperation among different departments and stakeholders. 

Thus, the TOP 10 KEY PERFORMANCE INDICATORS 2023: Expert Tips For Choosing The Right Metrics delves into the KPI selection process developed by The KPI Institute. It primarily involves scope clarification, selection criteria and techniques, leading up to the initial performance review meeting.

To discover the top 10 KPIs for 2023 and gain deeper insights into the best practices for KPI selection, download the TOP 10 KEY PERFORMANCE INDICATORS 2023: Expert Tips For Choosing The Right Metrics for free on the TKI Marketplace

 

High participant demand for Certified KPI Professional prompts simultaneous sessions

July 19th, 2023 Posted by Certification, Courses 0 thoughts on “High participant demand for Certified KPI Professional prompts simultaneous sessions”

In response to increased participant demand, The KPI Institute held two simultaneous versions of Certified KPI Professional Live Online on July 24 – 28, 2023. 

Tailored to meet the challenges faced by professionals in key performance indicator (KPI) selection and usage, the Certified KPI Professional course applies a robust KPI Measurement Framework that is built upon two decades of research and industry best practices. This course covers various aspects of working with KPIs,  from selection to result centralization in performance reports. 

The Certified KPI Professional course has consistently ranked among the top most popular courses offered by The KPI Institute. This program attracts professionals across all management levels and industries from different parts of the world. The lessons are delivered in different languages, such as English, Arabic and Spanish.

Throughout the training session, participants are equipped with the skills needed to manage KPIs and improve their current processes and systems. Moreover, this learning opportunity enables them to apply the learned concepts immediately within their organizations.

At the end of the course, participants are expected to distinguish between objectives, KPIs, and initiatives, document KPIs using a standardized template, understand the appropriate use of benchmarking for target-setting, and optimize the KPI activation and data-gathering process.

The benefits of enrolling in this course include access to relevant performance data, pre-populated tools for KPI implementation, an innovative three-stage learning process; the opportunity to join the Certified KPI Professionals Community; and 40 CPD credits.

Do not miss this opportunity and register now for Certified KPI Professional Live Online! For additional information and the course schedule, visit https://kpiinstitute.org/kpi-certification-presentation/

Testimonials for the Certified KPI Professional program

“This certification is not only for seniors and businesses. It’s also about how you can think in a constructive way to set some measurements for your performance on a daily basis even in normal life. It’s a must.” – Senior Organization Excellence Specialist, ADES-Advanced Energy Systems, Egypt

“One of the best knowledge-filled courses I have ever attended. Don’t ever let anything or anyone take away your focus or attention from the sharing because the presenter is the best in the field.” – Deputy Director, Institute Aminuddin Baki, Malaysia

Slot Thailand The contents were well-organized and supported with guidance and schedule that helps me to navigate easily with the certification process.” – Quality Assurance Auditor, GDCME, Saudi Arabia

 

KPI news: The KPI Institute’s research shows today’s most popular KPIs

January 25th, 2023 Posted by KPIs, Research 0 thoughts on “KPI news: The KPI Institute’s research shows today’s most popular KPIs”

Reports featuring the most popular KPIs of 2022 are now all available at The KPI Institute’s Marketplace platform. This series covers different contexts in which KPIs can be used by professionals and offers up-to-date information and resources on selecting and using KPIs.

The most popular KPIs were processed based on the data from smartKPIs.com, the world’s largest database of documented KPIs. In every report, users will find a KPI profile, analysis, notes on KPI reporting, and other details pertaining to performance measurement.

Explore the most popular KPIs in their respective industries or areas through the KPI of the Month poster collection, which can be downloaded for free:

KPI of January: # Days on market – measures the number of days a property stays on the market on average, between the listing for sale and the contract signing

KPI of February: # Berry ratio – measures the ratio of an organization’s gross profits to operating expenses

KPI of March: % Production First Time Yield (FTY) – measures the percentage of good units produced as per specifications from the first run of the process, out of the units going into the process

KPI of April: % Hospital bed occupancy rate – measures the percentage of beds in the hospital that are occupied by patients on a daily basis, out of the overall number of hospital beds

KPI of May: # Pick-to-ship cycle time for customer orders – measures the average time (in hours or days) from the moment of picking the order to the moment of shipping the product to the client

KPI of June: # Liquidity ratio – measures the available cash or other assets easily convertible into cash that could cover short term payables

KPI of July: % On time departures – measures the percentage of flights that are departing within 15 minutes from the initially scheduled take-off time out of the total number of flights scheduled for departing

KPI of August: % Project schedule variance – measures the variance in terms of schedule, revealing the alteration between the planned project timeframe and the actual project phase

KPI of September: % Production uptime – measures the percentage of the utilized operation time, from the planned available production time

KPI of October: % Employee turnover – measures the rate at which employees leave the organization in a given period

KPI of November: # Lost Time Injury Frequency Rate (LTIFR) – measures the number of work-related incidents generating time loss that are occurring per one million hours worked

KPI of December: $ Revenue Per Available Seat Hour (RevPASH) – measures the restaurant’s revenue on a per available seat hour basis.

For more information on the research reports, get in touch with Cristina Mihăiloaie, Business Unit Manager – Research Division: [email protected] | +61 (390) 282 223 | +40 (749) 424 517

 

The Government Services Index 2022: An Overview of Post-pandemic Government Performance

December 2nd, 2022 Posted by Press release 0 thoughts on “The Government Services Index 2022: An Overview of Post-pandemic Government Performance”


The Government Services Index Report –  2022  is a composite set of indicators that aims to capture the performance of governments in key areas of public service that drive resilience and high adaptability to change.

Through a thorough assessment of some of the most crucial aspects of good governance in the post-pandemic period, The KPI Institute releases the Government Services Index 2022. The report investigates the performance of governments in critical areas of public service that drive resilience and high adaptability to change through five key dimensions:

  • Adaptability – the ability to easily adapt to change, respond to problems quickly and efficiently, and maintain resilience in a constantly changing environment.
  • Talent –  attracting, retaining, and developing skills and knowledge in the public sector.
  • Digitalization – the significance of rethinking citizen-public service interactions in light of technology.
  • Governance – fulfilling governments’ obligations to develop and carry out policies that advance their nations’ development while demonstrating effectiveness, efficiency, openness, and integrity.
  • Impact – ensuring that citizens of the nation have improved access to essential services and a higher quality of life.

The Government Services Index Report covers seven world regions, ranks  66 countries, and corroborates data from 32 indicators reflective of the aforementioned dimensions

Report Overview

  • Preface
  • Index Methodology
  • Country Profiles

General Findings

  • Global Leaders in Government Services
  • Government Performance by Income Levels
  • Regional Dashboards

Overview of Rankings

Adaptability

  • General Outlook
  • Global Overview of Indicators
  • Regional Insights

Talent

  • General Outlook
  • Global Overview of Indicators
  • Regional Insights

Digitalization

  • General Outlook
  • Global Overview of Indicators
  • Regional Insights

Governance

  • General Outlook
  • Global Overview of Indicators
  • Regional Insights

Impact

  • General Outlook
  • Global Overview of Indicators
  • Regional Insights

Get your free copy of the Government Services Index 2022 today, from here! For inquiries regarding the Index, contact Marcela Presecan, Head of Research:  [email protected], or +61 (390) 282 223.

23rd Performance Magazine: Explore the World of Strategy and Performance Management

November 29th, 2022 Posted by Press release 0 thoughts on “23rd Performance Magazine: Explore the World of Strategy and Performance Management”


Take a deep dive into the newest PERFORMANCE Magazine – Printed Edition. 

The 23rd PERFORMANCE Magazine – Travel Issue reveals the new strategies established by hotels, airlines, restaurants, and other industry participants in the aftermath of the pandemic. This issue unveils the difficulties these industry face in reviving their operations and everything in between that affects their community, efficiency, and performance.

What Is Inside the 23rd PERFORMANCE Magazine?

Get updates and inclusive insights on the recent status of businesses in the tourism and travel industry. Have a glimpse at the extended and newest edition of a report compiled with the top key performance indicators (KPIs) in the airline industry and explore fresh approaches to reviving the hospitality industry.

Learn about new ideas, best practices, case studies, agile practices, and insightful perspectives on strategy planning and execution, performance management cycles, benchmarking, data analysis and visualization, and the use of KPIs.

Determine how silo transformation can improve organizational performance directly from Dr. Keith Clinkscale, Strategic Planning and Performance Management Director in Palm Beach County, Florida, USA. Take a look at the tools they developed in monitoring and evaluating their performance and discover it helped them advance their competition in the industry. 

Travel the world of strategy and performance management through recent initiatives of hospitality, tourism, and travel industry in different countries, as well as through interviews with subject matter experts, seasoned consultants, practitioners, business leaders, academicians, and research analysts. Seize the recommended tools, webinars, podcasts, and talks you will encounter on the final pages of the magazine.

To get your own copy of the 23rd PERFORMANCE Magazine – Printed Edition, visit TKI Marketplace. You can download a free digital copy there! You can also get an additional printed copy of the magazine through Amazon

What’s Inside “State of Strategy Management Practice Report – 2022”?

May 24th, 2022 Posted by Research 0 thoughts on “What’s Inside “State of Strategy Management Practice Report – 2022”?”

“State of Strategy Management Practice Report – 2022” is an international research study that explores the latest issues, trends, and best practices impacting the field of strategic planning, KPI usage, and strategy execution.

Developed and published by The KPI Institute, the report presents the results of a survey held from November to December 2021. The survey questions were formulated by forming a focus group of internal subject matter experts and aggregating the feedback of thousands of professionals and practitioners in The KPI Institute’s community.

The report covers the major areas affecting organizations today, from target setting to performance measurement and from the role of communication in strategic planning to the common pitfalls in strategy execution.

The data captured in the study reflects the insights of 500 professionals (27% are Executives, and another 34% occupy managerial positions), and nearly half of them are either directly involved in strategy planning or responsible for the design and maintenance of the strategy and performance management system. The survey has addressed 26 topic-related items.

Inside the report, readers would find:

Report overview

  • Introduction
  • Methodology
  • Executive summary

Key Findings

Strategic Planning

  • Highlights
  • Strategy formulation process
  • Strategy alignment
  • Strategy tools
  • Key success factors
  • Strategy communication

Performance Measurement

  • Highlights
  • KPI usage
  • Target setting
  • Technology

Strategy Execution

  • Highlights
  • Overview
  • Initiative Management
  • Agility

Demographics

Conclusions and Implications for Practice

  • Conclusions
  • Implications for practice

Get your free copy of “State of Strategy Management Practice Report – 2022” today! For inquiries regarding the report, contact Cristina Mihăiloaie, Business Unit Manager – Research Division:  [email protected], +61 (390) 282 223 or +40 (749) 424 517.

Sustainability Standards and KPIs As Game Changers [Excerpt]

April 8th, 2022 Posted by Research 0 thoughts on “Sustainability Standards and KPIs As Game Changers [Excerpt]”

Editor’s Note: Below is an excerpt from the article “Sustainability Standards and KPIs As Game Changers,” written by Silvana Badita and published in the latest edition of Performance Magazine. It presents trends, solutions, and best practices for strategy and performance management through in-depth articles, first-hand how-to’s, concept presentations, case studies, and expert insights.

Companies can no longer afford to ignore sustainability. It is not just a trend but a major factor that drives where most businesses are headed. According to Globescan’s The State of Sustainable Business 2019, reputational risks, consumer demand, investor interest, operational risk, and employee engagement are some of the catalysts behind the sustainability efforts of most organizations. 

Manufacturing is one of the industries that are pressured to realign their activities with the mounting call for sustainability practices. Sustainable manufacturing refers to developing products with minimal negative environmental impacts and maximum contribution to the conservation of natural resources. These products are expected to be economically sound and safe for employees, communities, and consumers. 

Sustainable manufacturing aims to reduce the intensity of materials use, energy consumption, emissions, and unwanted byproducts while maintaining or improving the value provided for society and organizations. 

Some relevant key performance indicators that are often considered when evaluating the sustainability of manufacturing companies are:

  • Environmental performance KPIs, such as: # Air emissions, % Energy utilization, % Hazardous waste etc.
  • Economic performance KPIs: % Product reliability, % Conformance to specifications, $ Material cost, % Labor cost etc.
  • Social performance KPIs: % Occupational health and safety, % Turnover rate, % Supplier commitment etc.

Sustainability standards are observed to ensure quality, transparency, compliance, and results in terms of making organizations accountable for their economic, environmental, and social performance.

The GRI Standards

Among the internationally renowned frameworks is the Global Reporting Initiative’s (GRI) Sustainability Reporting Standards. The GRI Standards consist of Universal Standards, which apply to all organizations and report on human rights and environmental due diligence, the new Sector Standards for sector-specific impacts, and the Topic Standards that come with the revised Universal Standards and relate to a particular topic.

Their vision is to create a sustainable future enabled by transparency and open dialogue about impacts. In this regard, they are a provider of the world’s most widely used sustainability disclosure standards.

With GRI Standards, companies can publicly present the outcomes of their activities in a structured way. This allows their stakeholders and interested parties to better see their status of how they are responding to calls for sustainability. GRI Standards can be used by any type of organization, whether large or small, public or private, or from any location or industry.

Discover how Daimler, the world’s biggest manufacturer of commercial vehicles, developed its sustainability report using the GRI Standards. Read the rest of the article in the latest edition of Performance Magazine  Download your FREE COPY now!

Can Your Favorite Restaurants Recover From the Pandemic? See New Reports

January 22nd, 2022 Posted by KPIs, Research 0 thoughts on “Can Your Favorite Restaurants Recover From the Pandemic? See New Reports”

Online ordering, digital payments, the rising demand for plant-based items and sustainable packaging, and preference for alcohol-to-go and outdoor dining are just some of the trends that restaurants are adjusting to. 

While consumer behavior and dining preferences have changed due to the COVID-19 pandemic, the restaurant industry sees a glimmer of hope. Sales are expected to increase from $864 billion in 2019 to $898 billions this year, according to the National Restaurant Association’s 2022 State of the Restaurant Industry Report. Meanwhile, the foodservice industry is predicted to generate 400,000 jobs, for total industry employment of 14.9M before the year ends.

However, Hudson Riehle, senior vice president of the Research and Knowledge Group at the National Restaurant Association, emphasized that the restaurant industry may never completely return to its pre-pandemic state. 

Over half of restaurant operators believe that the return to normalcy would take a year or more. Restaurants are still grappling with employee retention and recruitment, food, labor, and occupancy costs, and supply delays or shortages of key food or beverage products.

“We still have work to do to ensure that those operators struggling the most can survive.  The Association will continue to champion the necessary government support needed at the federal and local levels to help keep these businesses — cornerstones of our communities — on a path to better days,” said Marvin Irby, Interim President & CEO of the National Restaurant Association.

What Can Restaurants Do

Use data to adapt to changes. The NPD Group recommends studying restaurant visits each daypart–morning meal, lunch, dinner, and P.M. Snack–and adjusting operations according to the behavior and motivations of diners. “The ability for restaurants, particularly full-service restaurants, to operate at total capacity, consumer comfort with dining in, and more business and recreational travel will aid recovery at the dinner daypart,” NPD states.

Exceed expectations to retain customers. Heleri Rande, a partner at Think Hospitality, a Florida-based real estate development and hospitality company, believes that restaurants should go beyond their usual services. They can add special touches like recipe boxes and contactless drop-off. She also suggests upselling “sides, bottles of wine, and desserts” and encouraging customers to buy gift vouchers. 

Track performance using KPIs. During uncertain times, every business decision is critical. Understanding where a restaurant has potential or needs improvement can help owners develop and implement a customer-focused strategy. This is only possible when they have the data to support their decisions.

The KPI Institute released The Top 25 Restaurant KPIs – 2020 Extended Edition, which compiles the most popular 25 KPIs used by food and beverage units worldwide throughout 2016 and 2020. The 25 restaurant KPIs identified are categorized into six divisions:

  • Restaurant Financials – Incorporate the sales generated by the business from different perspectives and the investments made for its functionality
  • Service Quality – Refers to issues that influence customer’s satisfaction, such as unavailability of menu items or service diversity
  • Customer Feedback – Offers information regarding the customers’ assessment of the restaurant as an indicator of their satisfaction and loyalty
  • Restaurant Occupancy – Represents the attraction of customers and the capacity at which the restaurant operates
  • Restaurant Workload – Reflects on the intensity of the restaurant’s activity and the impact of peak periods on employees
  • Restaurant Governance – Indicates the principles and practices that guide the decisions of the restaurant’s management

Discover the 25 most popular restaurant KPIs today and read each of their profiles, all packed with exclusive in-practice recommendations. Download The Top 25 Restaurant KPIs – 2020 Extended Edition now!

Year-end Recap: The KPI Institute Identifies the Most Popular KPIs in 2021

November 29th, 2021 Posted by KPIs, Research 0 thoughts on “Year-end Recap: The KPI Institute Identifies the Most Popular KPIs in 2021”

most popular KPIs

The wave of changes in the past two years has compelled businesses to review their performance and realign their strategies to the times. The losses, leaps, and lessons vary in different industries, but organizations, from multinational companies to brick-and-mortar stores, have to answer the same question: What is the best “new normal” for us?

As businesses adapt to a rapidly changing environment and figure out what works for them, key performance indicators (KPIs) are more important than ever. KPIs can serve as the order beneath the chaos, helping organizations achieve and monitor a desired level of results for their activities.

The KPI Institute, carrying over 17 years of experience in the field, continues to share its expertise and knowledge on KPI best practices through the Top KPI reports. As the year comes to a close, we’ve bundled up the most popular KPIs released in 2021. The results are based on the data from smartKPIs.com, the world’s largest database of documented KPIs. 

This series of reports provides companies, practitioners, consultants, and professionals with updates and resources on how to select and use KPIs in their respective industries or functional areas. Each report features the profile of every KPI, analysis, notes on KPI reporting, and other information related to the performance management discipline.

2021 Top 25 KPIs

The Top 25 KPI reports present the most popular KPIs in various industries and functional areas, such as procurement/purchasing, marketing, production, human resources, customer service, hotels, restaurants, finance, and real estate development and transactions.

2021 Top 10 KPIs

Download the Top 10 KPI reports for different industries for a more compact version of the KPIs’ profiles, analysis, and in practice recommendations.

2021 KPI of the Month

Discover the most popular KPIs in their respective industries or areas through the KPI of the Month poster collection.

For more information on the research reports of The KPI Institute, get in touch with Cristina Mihăiloaie, Business Unit Manager – Research Division: [email protected] | +61 (390) 282 223 | +40 (749) 424 517.

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