Category Archives: Balanced Scorecard

Length of service of staff who have left

Definition:
Average time for employees to work at the organization before they leave for a certain (or predefined) reason.

Calculation:
Average employment duration of leaving employees

This KPI is measured as: Time (e.g. Years, Minutes)

Interpretation of results: Higher Is Better

Strategic objective:
Happy employees make happy customers, which make happy shareholders

Indirect working hours

Definition:
The percentage of working hours that have not been spend on labour. This can be caused by sickness, but also courses and other activities. Mind that the cause can be a dimension, and that the causes can be captured in separate KPI's.

Calculation:
(Number of working hours that have not been spend on direct labour / Number of potential workin hours) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Happy employees make happy customers, which make happy shareholders

Employee complaint resolution timelines and effectiveness

Definition:
Rate of employee complaints that has been solved on time and with a good result (confirmed by the employee)

Calculation:
(Complaints solved on time and effective / Total complaints) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Happy employees make happy customers, which make happy shareholders

Employee satisfaction

Definition:
The extent to which employees are satisfied of not. This can be measured by a survey, for example, on several scales and in several ways.

Calculation:
Average score of the employee satisfaction.

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Higher Is Better

Strategic objective:
Happy employees make happy customers, which make happy shareholders

Empowerment index

Definition:
Percentage of staff and managers who say in surveys that they are empowered. Empowerd means authority or power given to someone to do something.

Calculation:
(Empowered employees / total number of employees) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Happy employees make happy customers, which make happy shareholders

Community/environmental satisfaction index

Definition:
Degree to which stakeholders from the environment are satisfied with the company, or a specific component of the company (e.g. Social responsibility). Measured with external survey

Calculation:
Happy stakeholders (predefined grade) / all responding stakeholders) * 100%

This KPI is measured as: Index

Interpretation of results: Higher Is Better

Strategic objective:
Working well with the community and environment

Attendance numbers for social club functions

Definition:
Number of visits made to social activities, networking events, etc, by a predefined set of employees.

Calculation:
Sum of visits

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Depends On The Goals

Strategic objective:
Happy employees make happy customers, which make happy shareholders

Unit level costs

Definition:
Unit level costs arise from activities that are performed at least once for each unit of product. For example, machining a surface, drilling a hole, or attaching a subassembly must be done for eacht and every unit produced. These costs include direct labor and material, machine costs, and direct energy costs.

Calculation:
Sum of direct labor costs, direct material costs, direct machine costs, direct energy costs

This KPI is measured as: Financial Value (e.g. €, $)

Interpretation of results: Lower Is Better

Strategic objective:
Increase profitability

Staff turnover

Definition:
Turnover of staff, depending on the predefined type of turnover: resignations, end of contract, temporary staff, terminations, etc.

Calculation:
Sum of turnover per type

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Depends On The Goals

Strategic objective:
Happy employees make happy customers, which make happy shareholders

Batch-level costs

Definition:
Batch-lever costs arise from activities performed once for each batch or lot of products. For example, machine setups, cleanup, moving the batch to the next step in the production process depend on the number of batches rather than the number of units in each batch. Purchase orders and inspections are also examples of batch-level activities. These costs occur for each batch, independent of how many units are in the batch.

Calculation:
Sum of all types of costs from activities performed for a batch

This KPI is measured as: Financial Value (e.g. €, $)

Interpretation of results: Lower Is Better

Strategic objective:
Increase profitability