Examples of Key Performance Indicators for Chief Executives

The key results to be measured will depend on the type of business and the strategic plan.
Areas Key Performance Indicators (KPIs) are usually set for include human resource development, payroll systems, machinery performance,
distribution of quality products, increased production, sales and marketing to improve prices and health and safety. In a large company with a
large management team the senior managers would have accountability for these areas – but in a small company he CEO might be charged
with these responsibilities.

F2F - face to face at monthly discussion meetings, team briefing sessions

1 on 1 = monthly one on one performance discussions

A new company might set their CEO the goal of implementing performance frameworks for all staff.

Result area Goal: Human Resource Development Measures/Targets

Operations • Effectively manage Performance Review • Managers trained in KAO process by 15/3/00
process • Compliance survey for 1 on 1’s completed with
recommendations to each facility [quarterly]
• Staff are given feedback on performance not later than 15/10
(½ year) and 15/4 (full year)

People • Improve leadership skills in the business • PDP process is completed by [ ]

• Source best practice leadership programmes and
recommendation to CEO by 31/5/00
• [One day per month] 1 on 1 coaching of each GM

A company employing many labourers might have a particular focus on upgrading payroll systems.

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Result area Goal – improving Pay Roll functions Measures/Targets
Finance • Minimise cost of payroll runs • No penalty fee (PAYE) [ $0 ]

People • Contribute to site team goals • F2F [attend 10 out of 12]

• Actively contribute to my own performance • Prepare and forward 1 on 1 items to manager [24 hours prior
management process to meeting]
• 1 on 1’s [10 out of 12]

Personal Leadership • Develop personal leadership • Agree personal leadership development plan by [July 2000]
• Implement by [March 2001]

Operational • Deliver against service level agreements for • Pay runs in banks on time [< x% error]
Excellence businesses • Audit requirements [% rating]
• [ number of ] new ideas to reduce processing time
• [zero] manual pays
• Reduction of payroll errors [1 per month]

Customers • Reduce payroll customers complaints • Customer complaints [60% cf F’00]

• Accurate pay slips [error rate]
• LCSS - VC feedback

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A construction industry might have a particular focus on health and safety.

Result areas Goal – improving Health and Safety Measures/Targets

Financial • Monitor site health & safety costs and suggest • health and safety cost reports produced [monthly]
any improvements that could be made • [x] initiatives raised to optimise h & s costs
• Reduce cost of safety management [ $ ]
(depends on level of influence)

Personal Leadership • Develop personal leadership • Agree personal leadership development plan by [July 2000]
• Implement by [March 2001]
Customers • Improve customers knowledge through • Policy compliance
education programs • Safety training plan

Operational • Deliver site safety plan, adding value to the • Safety audits [score of x or greater]
Excellence company • Compliance with KEA process [ ]

People • Play an active role in being part of the • F2F [attend 10 out of 12]
‘Myrtleford site” team • Prepare and forward 1 on 1 items to manager [24 hours prior
to meeting]
• 1 on 1’s [10 out of 12]

• Increase safety skills and knowledge by • No. of initiatives for safety projects generated by site
mentoring site safety champions champions

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A manufacturing company might want to improve their engineering systems.

Result area Goal Improve machinery performance Measures/Targets

Operational • Improve machine uptime • Achieve uptime of 92% by 30/9/00 and maintain
Excellence • Planned monthly shuts completed in 14 hours
• Engineering costs are not more than $58 per tonne

Customer • Improve response to breakdowns • All machine tenders trained in Basic Care/Cause ID by
31/5/00
• Respond to breakdowns in [< 30 minutes]

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A distribution company might want their CEO to focus on improving distribution systems and quality of product

Result areas Goal – Distribution of quality products Measures/Targets

Financial • Contribute to EBIT target of x through managing • Budget managed within parameters [ ]
logistics cost budget • Cost of deliveries do not exceed plan [budget $]

Operational • Dispatch product as per daily plans • DIFOT [85%]

Excellence • Invoice accuracy [ ]
• Truck turnarounds [reduced to 25 mins]

Customer • Reduce customer complaints regarding • Variation reports to production are completed each day [100%
packaging defects per day]
• Recommendations re corrective action to Production within 24
hours for each non-compliance [ ]
• Undamaged goods [98%]

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A production company might have particular issues on the production line.

Result area Goal - Increase production Measures/Targets

Operational • Increase machine output • Improve uptime from 90% to 92%

Excellence • Increase tonnes per day to [101.5]
• Waste [<9%]
• Reduction in variable costs of $350,000 by 31/3/01

People • Improve operators’ effectiveness • Complete training skills training programmes in Basic Care by
30/6/00
• All operators completed level 3, TET by 30/9/00
• Complete quarterly skills audits [ ]

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Sales and marketing might be a focus for one year.

Result area Goal to improve prices Measures/Targets

Markets • Increase margins in horticulture • Achieve 5% price increase by 31/5/00

• Exit avocado market by 30/9/00
• Introduce/sell de-engineered design for Kiwi by 30/6/00

People • Increase effectiveness of sales team • All sales team trained in SPIN by 30/4/00
• Coaching / development calls with all staff by 30/6/00
• Kiwi reps have received technical training in de-engineering
by 31/5/00
• 100% 1 on 1’s

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 REGIONAL SALES MANAGEMENT - Sample Goals / Measures / Targets

Key Result Weight Goals Measures & Targets

Financial 5% • Contribute to achieving company goals • Company CFROI [ ]
• GP$ [ ]
35% • Achieve planned gross profit for region • Distribution, selling and admin costs [ ]
5% • Operating costs on plan for region • Stock turn [ ] and debtors days [ ]
5% • Working capital ratios on plan for region
People 15% • Raise performance standards • Complete monthly 1:1 program for all staff with
performance rating [min 10/12 p.a]
• Action plans for BT employees[ ]
• Deliver a great culture • Increase culture survey results for Standards and
Recognition by 10 points
• Reduce staff turnover • Turnover to be [< x%] for the year.
• Improve safety • Zero doctors cases and lost time incidents.
• Build benchstrength • Identify successor for A, B and C positions, and have
their development plans in place by 10/00.

Personal Leadership 10% • Develop personal leadership • Agree personal leadership development plan by July
2000 and implement by March 2001.

Operational Excellence 15 % • Meet our delivery promise to customers. • Ensure all staff understand our delivery promise and
the internal business rules to achieve these. Survey in
April 2000.

• Implement tracking systems to record DIFOT by • Included monthly in face to face for each branch from
number of line items in accordance with the delivery May 2000.
promise

KA5. Customers and Markets 10 • Develop xxx category as the lead product bundle in • Sales people to be trained to the following levels:
the .xxxx sector. 1. All reps to “basic” level by [ ]
2. Xxx sector reps to “certification” level by [ ]
3. Regional champion to “expert” level by [ ]
• Increase xxx sales by 100% F01 vs F00

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