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Performance metrics are indicators of the value produced by a business, program, team or individual. The following are common examples.Return on Capital EmployedThe ratio of profits to the total amount of capital invested to achieve those profits. A fundamental indicator of the performance of a firm.
The total revenue of a firm divided by the number of employees. A basic indicator of productivity. Often used as a benchmark to see if you are over or under staffed as compared to other firms in your industry. The cost per outcome achieved by an organization. For example, a non-profit organization that seeks to reduce microplastics in the ocean may calculate the cost per ton of reduction for both prevention and clean up programs.
The amount of output per hour of work. A basic measure of employee performance. For example, a software development team might measure story points per month per developer.The amount of output per unit of input. For example, a farm that measures the number of apples produced per acre of land.
WasteThe amount of waste per unit of output. For example, a supermarket that tracks the percentage of food products that expire before being sold.The average time it takes to compete an activity. For example, the time it takes to resolve customer inquiries.VolumeVolume metrics such as the number of sales deals closed in a month per sales person.
Quality metrics such as customer perceptions of your brand.The amount that you are over or under budget. Expressed as a percentage of the budget.Schedule VarianceThe amount that you are late or early to deliver to commitments. Expressed as a percentage of total scheduled time.
Defect DensityThe number of defects per output. For example, software development teams may measure defects per thousand lines of code and factories may measure defects per thousand units.Measuring performance from the customer perspective by asking them how satisfied they are with products or services. A common way to measure the performance of frontline employees.
The contributions to profits generated by an investment such as a project or business purchase. Expressed as a percentage of the investment. The percentage of your revenue that is generated by new products. A way to measure innovation and expenditure on research & development. Requires a definition of "new product" that differs by industry.|
| Type | | | Definition | Indicators of the value produced by a business, program, team or individual. | | Related Concepts | |
Employee Performance
This is the complete list of articles we have written about employee performance.
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