Types of KPIs

There are a variety of KPIs that can help measure the performance or progress of your business. The most important types of KPIs are:

  • Qualitative indicators
  • Quantitative indicators
  • Leading indicators
  • Lagging indicators
  • Input indicators
  • Output indicators
  • Process indicators
  • Practical indicators
  • Directional indicators
  • Actionable indicators
  • Financial indicators
  • Outcome indicators

How to Set KPIs in 4 Steps

Step 1

  • Identify the expected results of the organization

Step 2

  • Establish the requirements that are necessary to achieve the ultimate goals of the organization

Step 3

  • Identify the current progress level of the company

Step 4

  • Determine the percentage of change that has occurred within each area of review

Identify the expected outcomes of the organization

Divide the objectives into specific goals

Identify the current level of progress of the company

Specify the percentage of change that has occurred in each control area

What are sustainability indicators and what are they used for?

These are measures that can be used to gauge how well a company’s strategies are working and they have the following characteristics:

  • Sustainability indicators assess both the company’s performance and plan implementation
  • Sustainability indicators are directly related to several standards
  • Companies that adopt them show their commitment and performance in particular areas

Examples of KPIs in social sustainability

  • The number of new workers in a company
  • The benefits available to permanent staff
  • Return to work and retention rates after parental leave by gender.
  • Percentage of total workforce
  • Workers with high incidence or high risk of diseases related to their occupation
  • Average hours of training per year per employee by gender, and by employee category
  • Ratio of basic salary and remuneration of men to women

KPIs in financial sustainability

Tracking financial stability is extremely important to ensure the responsible management of your company’s finances and fiscal health.

Bellow there are the 5 financial KPIs you can’t miss  

  1. Gross Profit Margin = (Revenue – Cost of Good Sold) / Revenue
  2. Net Profit = Total Revenues – Total Expenses
  3. Net Profit Margin = Net Profit / Total Revenues
  4. Current Ratio = Current Assets / Current Liabilities
  5. Debt to Equity Ratio = Debt / Equity

Environmental key performance indicators

Environmental key performance indicators (KPIs) are quantitative measures, actual number that put values on the environmental performance of your business.

Examples of environmental KPIs:

  • energy bills
  • water bills
  • purchasing records
  • vehicle fuel use or vehicle mileage figures
  • waste management bills
  • travel receipts

An environmental KPI should be accompanied by:

Information on why it was included (its purpose and impact)

How the information was obtained and calculated

If any assumptions were made

How to choose your environmental KPIs

The government has produced a list of environmental KPIs that are relevant to businesses. The four mains environmental KPI areas are:

  • Emissions to air
  • Emissions to water
  • Emissions to land
  • Resource use

How can you make your environmental KPIs comparable?

  • You should report environmental data in a comparable format, so that your performance can be assessed over time and against other businesses
  • KPIs should also be expressed in terms that cover the entire business for the period of the report
  • You should use measurements that are standard across your business sector.
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