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25 KPIs Every Manager Needs To Know
Key performance indicators (KPIs) 
should be the vital navigation 
instruments used by managers to 
understand whether their business 
is on a successful voyage or 
whether it is veering off the 
prosperous path. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
The problem is that most managers 
are struggling to understand and 
identify the vital few management 
metrics and instead collect and 
report a vast amount of everything 
that is easy to measure. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
Based on many years of helping 
companies across the world select and 
use KPIs, I have picked my top 25. 
Published in my latest Financial Times 
book: 
25 Need-to-Know Key Performance 
Indicators 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
I have picked the ones that should be 
relevant to most companies. But 
remember, these are KPIs you need to 
know, not use! 
Only use the ones that are relevant to 
your business strategy and make sure 
not to miss out the industry specific 
ones for you (you won’t find those in any 
generic list). 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
I have organized my top 25 KPIs into 
the following four business areas: 
1. Measuring and understanding your 
customers 
2. Measuring and understanding your 
financial performance 
3. Measuring and understanding your 
internal processes 
4. Measuring and understanding your 
employees 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
Part 1 
Measuring and 
Understanding Your 
Customers 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
1. Net promoter score (NPS) - 
How likely is it that a 
customer will recommend 
your business to a friend? 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
2. Customer profitability score - 
How much profit do individual 
customers bring your business, 
after deducting the costs of 
attracting and keeping them 
happy with advertising, 
customer services etc? 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
3. Customer retention rate - 
How many of your customers 
are going to come back for 
more? And how loyal are they 
to your brand, organization or 
service?
4. Conversion rate - 
How well do you translate 
enquiries, sales calls and web 
page views into paying 
customers?
5. Relative market share - 
How big your slice of the pie 
is, compared to your 
competitors in the same 
market. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
Part 2 
Measuring and 
understanding your 
financial performance 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
6. Revenue growth rate - 
The rate at which you are 
increasing your company’s 
income. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
7. Net profit – 
Income minus expenses – the 
bottom line, but certainly not 
the only metric you need to 
worry about! 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
8. Net profit margin - 
The percentage of your 
revenue which is net profit. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
9. Gross profit margin - 
The percentage of your 
revenue which is gross profit 
(the profit generated for each 
dollar of sales). 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
10. Operating profit margin - 
Operating income divided by 
revenue – another measure 
of a company’s profitability. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
11. Return on investment 
(ROI) The revenue 
generated by investing 
money into an aspect of a 
company’s operations, in 
relation the cost of that 
investment. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
12. Cash conversion cycle 
(CCC) - How long does it take 
for money invested in the 
business (for stock etc) to 
come back to the company in 
the form of increased 
revenue. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
Part 3 
Measuring and 
understanding your 
internal processes 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
13. Capacity utilisation rate 
(CUR) - 
Are you meeting your 
potential in terms of amount 
of work you can carry out, 
with the resources you have 
available? 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
14. Project schedule variance 
(PSV) - 
Are your projects reaching 
completion on time? 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
15. Project cost variance 
(PCV) - 
Are your projects coming in 
without going over budget? 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
16. Earned value (EV) metric - 
Value generated by your 
company’s ongoing projects. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
17. Order fulfilment cycle time 
(OFCT) - 
The time that it takes from a 
customer placing an order, to 
the product or service being 
delivered. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
18. Delivery in full, on time 
(DIFOT) rate - 
Customer orders filled in full, 
and on time, compared to 
total number of customer 
orders. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
19. Quality index - 
Is the quality of your goods or 
services as high as your 
customers are expecting? 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
20. Process downtime level - 
How much time is wasted 
due to downtime, technical 
breakdown or staff sickness. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
Part 4 
Measuring and 
understanding your 
employees 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
21. Staff advocacy score – 
How likely are your staff to 
recommend you as a 
company to work for? 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
22. Employee engagement 
level - 
How does your employee’s 
behaviour contribute to the 
business’s overall goals? 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
23. Absenteeism Bradford 
factor - 
How much is unauthorized 
staff absence costing your 
business? 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
24. Human capital value added 
(HCVA) - 
The financial value added to 
the business by individual 
members of staff. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
25. 360-degree feedback score 
How staff rate each other – 
as well as themselves. 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
Find out more and 
order the book here: 
25 Need-To-Know 
Key Performance 
Indicators 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
Order Options: 
• Amazon US 
• Amazon UK 
• Barnes & Noble 
• Pearson 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
About 
This overview was put together by 
Bernard Marr, 
Founder and CEO of the Advanced Performance Institute. 
Bernard Mar is a bestselling business author, keynote speaker, strategic 
performance consultant, and analytics, KPI & Big Data guru. He helps 
companies with their KPIs and trains teams to better develop and use KPIs. 
Read Bernard’s blogs: 
• LinkedIn Influencer Blog 
Connect with Bernard on: 
• LinkedIn 
• Twitter 
• Advanced Performance Institute 
© 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.

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25 KPIs Every Manager Needs To Know

  • 2. Key performance indicators (KPIs) should be the vital navigation instruments used by managers to understand whether their business is on a successful voyage or whether it is veering off the prosperous path. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 3. The problem is that most managers are struggling to understand and identify the vital few management metrics and instead collect and report a vast amount of everything that is easy to measure. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 4. Based on many years of helping companies across the world select and use KPIs, I have picked my top 25. Published in my latest Financial Times book: 25 Need-to-Know Key Performance Indicators © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 5. I have picked the ones that should be relevant to most companies. But remember, these are KPIs you need to know, not use! Only use the ones that are relevant to your business strategy and make sure not to miss out the industry specific ones for you (you won’t find those in any generic list). © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 6. I have organized my top 25 KPIs into the following four business areas: 1. Measuring and understanding your customers 2. Measuring and understanding your financial performance 3. Measuring and understanding your internal processes 4. Measuring and understanding your employees © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 7. Part 1 Measuring and Understanding Your Customers © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 8. 1. Net promoter score (NPS) - How likely is it that a customer will recommend your business to a friend? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 9. 2. Customer profitability score - How much profit do individual customers bring your business, after deducting the costs of attracting and keeping them happy with advertising, customer services etc? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 10. 3. Customer retention rate - How many of your customers are going to come back for more? And how loyal are they to your brand, organization or service?
  • 11. 4. Conversion rate - How well do you translate enquiries, sales calls and web page views into paying customers?
  • 12. 5. Relative market share - How big your slice of the pie is, compared to your competitors in the same market. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 13. Part 2 Measuring and understanding your financial performance © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 14. 6. Revenue growth rate - The rate at which you are increasing your company’s income. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 15. 7. Net profit – Income minus expenses – the bottom line, but certainly not the only metric you need to worry about! © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 16. 8. Net profit margin - The percentage of your revenue which is net profit. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 17. 9. Gross profit margin - The percentage of your revenue which is gross profit (the profit generated for each dollar of sales). © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 18. 10. Operating profit margin - Operating income divided by revenue – another measure of a company’s profitability. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 19. 11. Return on investment (ROI) The revenue generated by investing money into an aspect of a company’s operations, in relation the cost of that investment. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 20. 12. Cash conversion cycle (CCC) - How long does it take for money invested in the business (for stock etc) to come back to the company in the form of increased revenue. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 21. Part 3 Measuring and understanding your internal processes © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 22. 13. Capacity utilisation rate (CUR) - Are you meeting your potential in terms of amount of work you can carry out, with the resources you have available? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 23. 14. Project schedule variance (PSV) - Are your projects reaching completion on time? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 24. 15. Project cost variance (PCV) - Are your projects coming in without going over budget? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 25. 16. Earned value (EV) metric - Value generated by your company’s ongoing projects. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 26. 17. Order fulfilment cycle time (OFCT) - The time that it takes from a customer placing an order, to the product or service being delivered. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 27. 18. Delivery in full, on time (DIFOT) rate - Customer orders filled in full, and on time, compared to total number of customer orders. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 28. 19. Quality index - Is the quality of your goods or services as high as your customers are expecting? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 29. 20. Process downtime level - How much time is wasted due to downtime, technical breakdown or staff sickness. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 30. Part 4 Measuring and understanding your employees © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 31. 21. Staff advocacy score – How likely are your staff to recommend you as a company to work for? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 32. 22. Employee engagement level - How does your employee’s behaviour contribute to the business’s overall goals? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 33. 23. Absenteeism Bradford factor - How much is unauthorized staff absence costing your business? © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 34. 24. Human capital value added (HCVA) - The financial value added to the business by individual members of staff. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 35. 25. 360-degree feedback score How staff rate each other – as well as themselves. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 36. Find out more and order the book here: 25 Need-To-Know Key Performance Indicators © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 37. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 38. © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 39. Order Options: • Amazon US • Amazon UK • Barnes & Noble • Pearson © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.
  • 40. About This overview was put together by Bernard Marr, Founder and CEO of the Advanced Performance Institute. Bernard Mar is a bestselling business author, keynote speaker, strategic performance consultant, and analytics, KPI & Big Data guru. He helps companies with their KPIs and trains teams to better develop and use KPIs. Read Bernard’s blogs: • LinkedIn Influencer Blog Connect with Bernard on: • LinkedIn • Twitter • Advanced Performance Institute © 2014 Bernard Marr, Advanced Performance Institute, BWMC Ltd. All rights reserved.