A Key Performance Indicator is a method through which an employer may evaluate and tangibly measure an employee’s work performance. An employee’s success in terms of KPIs is usually defined as reaching specific strategic goals whereby the employee has specific targets set. However, success may also be derived by achieving more operational oriented goals such as “zero defects” or “10/10 customer service satisfaction”.


Choosing the right KPI is important and should be based around the company’s overall strategy. It is appropriate to have team or department specific KPIs which naturally feed into the overall operation and goals of the company. KPIs are often associated with “performance improvement” initiatives as they can aid staff in focusing on specific operational elements which need to be addressed within a business. Some examples of good KPIs for varying departments include:

  • New customers acquired
  • Collection of account bad debts
  • Customer Attrition
  • Turnover per area/demographic.