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KEY PERFORMANCE INDICATOR

This document outlines the Key Performance Indicators (KPIs) for an employee at Intal Garments, detailing specific objectives to measure performance. It includes sections on KPI definitions, measurements, targets, timelines, performance reviews, and potential adjustments. Additionally, it provides examples of financial, customer, operations, and learning and growth KPIs, along with their definitions and formulas.

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mikko intal
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Download as DOCX, PDF, TXT or read online on Scribd
3 views

KEY PERFORMANCE INDICATOR

This document outlines the Key Performance Indicators (KPIs) for an employee at Intal Garments, detailing specific objectives to measure performance. It includes sections on KPI definitions, measurements, targets, timelines, performance reviews, and potential adjustments. Additionally, it provides examples of financial, customer, operations, and learning and growth KPIs, along with their definitions and formulas.

Uploaded by

mikko intal
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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KEY PERFORMANCE INDICATOR (KPI)

1. Introduction

This agreement outlines the Key Performance Indicators (KPIs) for (Employee Name),
employed as (Job Title) at Intal Garments, effective (Start Date). These KPIs are
designed to measure and evaluate the employee's performance against specific,
measurable, achievable, relevant, and time-bound objectives aligned with the
company's goals.

2. KPIs

 KPI 1: [KPI Name 1]


o Definition: [Clear and concise definition of the KPI]
o Measurement: [How will the KPI be measured? (e.g., number of units
sold, customer satisfaction scores, project completion rate)]
o Target: [Specific, measurable, and achievable target for the KPI]
o Timeline: [Timeframe for achieving the target (e.g., quarterly, annually)]

 KPI 2: [KPI Name 2]


o Definition: [Clear and concise definition of the KPI]
o Measurement: [How will the KPI be measured?]
o Target: [Specific, measurable, and achievable target for the KPI]
o Timeline: [Timeframe for achieving the target]

 KPI 3: [KPI Name 3]


o Definition: [Clear and concise definition of the KPI]
o Measurement: [How will the KPI be measured?]
o Target: [Specific, measurable, and achievable target for the KPI]
o Timeline: [Timeframe for achieving the target]

3. Performance Review

 Regular Reviews: KPIs will be reviewed [frequency, e.g., quarterly] with


[Supervisor Name/Department Head].
 Performance Appraisal: KPI performance will be a significant factor in the
employee's annual performance appraisal.
 Feedback: Regular feedback will be provided to the employee on their progress
towards achieving the KPIs.

4. Adjustments

KPIs may be adjusted periodically based on business needs, changes in the employee's
role, or other relevant factors. Adjustments will be made in consultation with the
employee.
5. Agreement

By signing below, the employee acknowledges that they have read, understood, and
agree to the terms and conditions of this KPI agreement.

Employee Signature: _________________________

Date: _________________________

Supervisor Signature: _________________________

Date: _________________________

6. Appendix

 Supporting documentation, such as job descriptions, relevant company policies,


and performance review forms, can be included in an appendix.
1. FINANCIAL KPIs

KPI Name Definition Formula

Gross Profit Margin Measures the percentage of (Revenue - Cost of Goods


revenue that exceeds the Sold) / Revenue
cost of goods sold.

Net Profit Margin Measures overall profitability Net Profit / Revenue


after all expenses are
accounted for.

Total Cost Management Tracks total expenses and N/A


identifies areas to reduce
and manage costs
effectively.

Revenue Target Comparison Compares actual revenue to N/A


projected revenue. Analyzing
discrepancies helps assess
departmental performance.

Production Cost Analysis Calculates total production Total Production Costs /


costs to determine product Number of Units Sold
markup and profit margins.

Accounts Receivable Measures the average (Accounts Receivable / Total


Efficiency (DSO) number of days to collect Credit Sales) x Number of
payment after a sale. Days

Regional Sales Performance Analyzes sales performance N/A


across different regions to
provide feedback and
improve underperforming
areas.

Budget Adherence Compares actual expenses N/A


to budgeted amounts to
understand deviations and
improve future budgeting.

Financial Strength Demonstrates cash flow from (Cash Received from Issuing
financing activities. Stock or Debt) - (Cash Paid
as Dividends and Debt
Reacquisition)

Customer Service Cost Calculates the average Total Expenses / Total


annual cost to serve one Customers
KPI Name Definition Formula

customer.

EBITDA Measures earnings before Revenue - Expenses


interest, taxes, depreciation, (Excluding Interest, Tax,
and amortization. Depreciation & Amortization)

Customer Lifetime Value Assesses the ratio of Net Expected Lifetime Profit
(CLV) / Customer Acquisition customer lifetime value to from Customer / Cost to
Cost (CAC) acquisition cost. Acquire Customer
CUSTOMER

OPERATIONS KPIs
KPI Name Definition Formula

Cycle Time Measures the total time to _


complete a business process
from start to finish.

Process Efficiency Computes the ratio of the _


effective output to the total
input used in the business
process.

Error Rate Tracks the frequency of errors _


encountered in the process.

Return on Investment Measures the profitability or _


(ROI) value added of a process by
comparing its costs and
benefits.

Accounts Receivable Measures how efficiently a _


Turnover company collects cash from its
customers.

Operational Efficiency Assesses the ratio of overhead _


costs (including administrative
and fundraising expenses) to
total operating costs.

Compliance Rate Measures how well the process _


adheres to laws, regulations,
and internal standards.

Capacity Utilization Measures the extent to which _


an organization uses its
installed productive capacity
vs. output demand.

Program Expense Ratio Calculates the percentage of _


total expenses that go directly
to funding programs and
services, as opposed to
administrative costs.
Learning and Growth KPI

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