business, it is Measurable to really get a value of the KPI, the defined norms have to be Achievable, the improvement of a KPI has to be Relevant to the success of the organization, and finally it must be Time phased, which means the value or outcomes are shown for a predefined and relevant period. KPIs should be set at a senior level within an organization and cascaded through all levels of management. In order to be evaluated, KPIs are linked to target values, so that the value of the measure can be assessed as meeting expectations or not. Key performance indicators are mostly the non-financial measures of a company's performance – they do not have a monetary value but in a business context they do contribute to the company's profitability. Examples Accounts These are some of the examples: Percentage of overdue invoices Percentage of purchase orders raised in advance Number of retrospectively raised purchase orders Finance report error rate (measures the quality of the report) Average cycle time of workflow Number of duplicate payments Marketing and sales New customer acquisition Customer acquisition cost (CAC) Average deal size Demographic analysis of individuals (potential customers) applying to become customers, and the levels of approval, rejections, and pending numbers Status of existing customers Customer density (the proportion of revenue attributable to a specified percentage of accounts, which ideally should match, for example the top 10% of accounts should broadly contribute 10% of revenue) Customer attrition (the loss of clients or customers) Turnover (i.e., revenue) generated by segments of the customer population Outstanding balances held by segments of customers and terms of payment Collection of bad debts within customer relationships Profitability of customers by demographic segments and segmentation of customers by profitability Many of these customer KPIs are developed and managed with customer relationship management software. Faster availability of data is a competitive issue for most organizations. For example, businesses that have higher operational/credit risk (involving for example credit cards or wealth management) may want weekly or even daily availability of KPI analysis, facilitated by appropriate IT systems and tools. Manufacturing Overall equipment effectiveness (OEE) is a set of broadly accepted nonfinancial metrics that reflect manufacturing success. OEE = availability x performance x quality Availability = run time / total time; by definition this is the percentage of the actual amount of production time the machine is running to the production time the