Category Archives: Business Process

Number of full time temporary employees for a longer time

Definition:
Number of contractors connected to the organization for more than a predefined number of months. This can be interesting for cost effectiveness, continuity, etc. Might be interesting to hire an internal employee when a temporary employee is working on the job for a long time.

Calculation:
(Number of interim employees for a predefined long period / total number of employees) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Skilled and experienced workforce; cost effectiveness

Exit interviews

Definition:
Percentage of leaving employees that had an exit interview. Exit interviews can be really important for organisations to learn from the reasons why people leave. People who leave are possibly more willing to tell the truth and will have a positive feeling after such a conversation.

Calculation:
(Numbur of leavers with an exit interview / Total number of leavers) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Skilled and experienced workforce; learning organisation

Percentage of contractors to total staff

Definition:
The rate of the employees working for the organization as a contractor, or interim. This measure can be interesting for continuity of knowledge within an organization, for example.

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

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Skilled and experienced workforce

Water consumption per production unit

Definition:
Total liters of water used in the production process for producing one single unit

Calculation:
Sum of liters water used per produced unit

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

Interpretation of results: Lower Is Better

Strategic objective:
Reducing environmental impact; cost effectiveness

Water consumption per sales dollar

Definition:
Total liters of water used in the production process, per sales dollar

Calculation:
Sum of liters water used per sales dollar

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

Interpretation of results: Lower Is Better

Strategic objective:
Reducing environmental impact; cost effectiveness

Percentage of employees below certain age

Definition:
Part of the work force aged below a certain, predefined, age. This figure can be important to get insight in the segmentation of the work force to combine courses and development programs to increase the seniority.

Calculation:
(Employees below given age / Total number of employees) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Depends On The Goals

Strategic objective:
Skilled and experienced workforce

Average age of company patents

Definition:
The age of patents from the company. A higher average age means that the organization was less innovative in the recent history since there are more old than new patents.

Calculation:
Average of patent ages

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

Interpretation of results: Lower Is Better

Strategic objective:
Innovation

Percentage of hours spent on R&D

Definition:
Part of all the working hours within the organization that have been spent on Research & Development.

Calculation:
(R&D hours / total spent hours) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Depends On The Goals

Strategic objective:
Innovation

Percentage of waste generated

Definition:
Percentage of total raw material that ends up as waste

Calculation:
(waste / total raw material input) x 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Reducing environmental impact; cost effectiveness

Percentage of invoices processed within a certain period

Definition:
Part of all the invoices that have been processed within a predefined period. This figure can be relevant for managing the creditors ledger.

Calculation:
(Invoices processed in the defined period / total number of invoices) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Efficient operations; good relationship with creditors