Table 8 The list of performance indicators with operationalization

1/Financial performance

Sales performance

[Achieved total sales]/[planned sales] * 100

7

Inventory turnover

[Annual total sales]/[average inventory] * 100

59

Market share

% of growth in the last years [Sales volumes of products and services]/[total market demands] * 100

16, 57

Earnings per share (EPS)

[After-tax net earnings − preferred share dividends]/[weighted average nr of shares outstanding]

57

Average order value

[Aggregated monthly sales]/[monthly nr of orders]

7

Order growth

[Number of orders in the current month]/[total nr of orders]

7

Revenue growth

[Revenue from new sources]/[total revenue] * 100

16

Operating revenue

Sales revenues

57

Return on investment (ROI)

[After-tax profit or loss]/[total costs]

[Revenue − cost]/[cost]

57, 55

Return on assets (ROA)

[After-tax profit or loss]/[average total assets]

57, 16

Circulation of assets

[Operating revenues]/[assets] * 100

59

Current ratio

[Current assets]/[current liabilities] * 100

59

Net profit margin

[After-tax profit or loss]/[total operating revenues] [Total operating revenues − operating expenses − non-operating expenses]/[total operating revenues]

16, 57, 59

Profit per customer

[After-tax earnings]/[total nr of online, offline or all customers]

57

Management efficiency

[Operating expenses]/[operating revenues] * 100

59

Debt ratio, leverage level

[Debts]/[assets]

57, 59

2/Customer performance

2.1/Customer performance

Customer complaints, return rate

Nr of complaints, criticisms or notifications due to dissatisfaction about or non-compliance of orders, products and services

Nr or % of orders returned, rework or services to be redone (e.g., incorrect deliveries, incorrect documentation)

27, 30, 37, 40, 51, 57, 59

Perceived customer satisfaction

Qualitative scale on general satisfaction (e.g., Likert), possibly indexed as the weighted sum of judgements on satisfaction dimensions (e.g., satisfaction with products and services, perceived value, satisfying end-user needs, being the preferred suppliers for products or services, responsiveness, appearance, cleanliness, comfort, friendliness, communication, courtesy, competence, availability, security)

5, 16, 22, 40, 46, 11, 55 57, 59, 58, 60

Perceived customer easiness

Qualitative scale (e.g., Likert) on the degree of easiness to find information and regulations, to fill out applications, and to understand the presentation of bureaucratic language

40

Customer retention

Nr of returning customers

57

Customer growth

Nr of new customers

57

Customer query time, resolution time, response time

Average time between issuing and addressing a customer problem or inquiry for information

30, 40, 46, 58, 59, 60

Customer waiting time

[Time for information about a product or service] + [time for following status updates] + [time for receiving the product or service]

Max nr of customers in the queue or waiting room

[Handled requests]/[total requests]

3, 40, 52, 59

Punctuality, delivery reliability

[Late deliveries or requests]/[total nr of deliveries or requests]

% of On-time deliveries according to the planning or schedule

16, 18, 26, 27, 40, 51, 55, 60, 73

Payment reliability

[Nr of collected orders paid within due date]/[total nr of orders] * 100

7

Information access cost, information availability

Information provided/not provided

Time spent in asking for information about a product or service (in days)

Time required to get updated about the status of a product or service

Cost of information (euro)

40

Customer cost

Product cost or the cost of using a service (euro)

40

2.2/Supplier performance

External delays

Nr of delayed deliveries due to outage or delays of third-party suppliers

26, 73

External mistakes

% of Incorrect orders received

27

Transfers, partnerships

% of Cases transferred to a partner

59

2.3/Society performance

Perceived society satisfaction

Qualitative scale on general satisfaction (e.g., Likert), possibly indexed as the weighted sum of judgements on satisfaction dimensions

% of Society satisfied with the organization’s outcomes

46

Societal responsibility, sustainability, ecology, green

Number of realized ecology measures (e.g., waste, carbon dioxide, energy, water)

Quantity of carbon dioxide emitted per man month

51

3/Business process performance

3.1/General process performance

Process complexity

Number of elementary operations to complete the task

40

General process information

Nr of orders received or shipped per time unit

Nr of incoming calls per time unit

Nr of process instances

6, 27, 52

Order execution

[Nr of executed orders]/[total nr of orders] * 100

7

Perceived sales performance

Qualitative scale (e.g., Likert) on the successful promotion of both efficiency and effectiveness of sales

57

Perceived management performance

Qualitative scale (e.g., Likert) on the improvement of effectiveness, efficiency, and quality of each objective and routine tasks

57

Surplus inventory

% of current assets

Value of surplus inventory (e.g., pharmaceutical material) to total assets ratio

59

Occupancy rate

Average  % occupancy, e.g., of hospital beds

59

3.2/Time-related process performance

Throughput

Nr of processed requests/time unit

46

Process duration, efficiency

[Σ(finish date − start date) of all finished business objects]/[number of all finished business objects]

17

Process cycle time, order cycle time, process duration, average lifetime, completion time, process lead time

Time for handling a process instance end-to-end

Aggregated time of all activities associated with a process (per instance)

[Application submission time] − [application response time]

5, 6, 11, 37, 40, 43, 46, 60, 73

Average sub-process turnaround time, task time, activity time

[Sub-process start time] − [Sub-process finish time]

6, 37, 40, 52, 60

Processing time

Time that actual work is performed on a request

46

Average order execution time, order fulfillment time, order lead time

[Σ(Dispatch time − creation time)]/[total number of orders]

[order entry time] + [order planning time] + [order sourcing, assembly and follow-up time] + [finished goods delivery time]

7, 46, 60, 73

Average order collection time

[Σ(Collection time − creation time)]/[number of collected orders]

7

Average order loading time

[Σ(Final distribution time − distribution creation time)]/[number of loaded orders]

7

Process waiting time, set-up time

Average time lag between sub-processes, when a process instance is waiting for further processing

Time between the arrival of a request and the start of work on it (=time spent on hold)

Average waiting time for all products and services

3, 5, 20, 37, 46, 52

Manufacturing cycle efficiency

[setup time + (nr of parts * operation time)]/[manufacturing lead time]

53

Manufacturing lead time

[setup time + (nr of parts * operation time) + queue time + wait time + movement time]

18, 53, 55

Value added efficiency

[Operation time]/[manufacturing lead time]

53

3.3/Cost-related process performance

Activity cost

Cost of carrying out an activity

46

Process cost, cost of quality, cost of producing, customer order fulfilment cost

Sum of all activity costs associated with a process (per instance)

5, 11, 16, 18, 20, 22, 26, 27, 40, 43, 46

Unit cost

Nr of employees (headcount) per application, product or service

40

Information sharing cost

[Time for system data entry] + [time for system delivery output]

40

3.4/Process performance related to internal quality

Quality of internal outputs, external versus internal quality, error prevention

% of instance documents processed free of error

Number of mistakes

[Nr of tasks with errors]/[Total nr of tasks per process]

Nr of syntactic errors

Nr of repeated problems

Presence of non-technical anomaly management (yes/no)

5, 16, 18, 20, 22, 37, 40, 43, 46, 55, 60, 66

Deadline adherence, schedule compliance, due date performance effectiveness, responsiveness

% of Activity cycle times realized according to the planning or schedule

[Number of finished business objects on time]/[number of all finished business objects] * 100

16, 17, 18, 26, 43

Process yield

Multiply the yield per process steps, e.g., (1 − scrap parts/total parts)^{step 1} * (1 − scrap parts/total parts)^{step 2}

43

Rework time, transaction efficiency

Time to redo work for an incident that was solved partially or totally incorrect the first time

Average time spent on solving problems occurring during transactions

30, 43, 57

Integration capability

Time to access and integrate information

40

3.5/Process performance related to flexibility

Special requests

Nr of special cases or requests

40

4/“Learning and growth”-performance

4.1/(Digital) innovation performance

Degree of digitalization

% Reduction in processing time due to computerization

[Nr of process steps replaced by computer systems]/[Total nr of steps in the entire process]

Nr of digital products or services

40, 46, 71

Degree of rationalization

% of Procedures and processes systemized by documentation, computer software, etc.

57

Time for training on the procedure

Measured in hours

40

Novelty in output

Nr of new product or service items

57

Customer response

Nr of suggestions provided by customers about products and services

57

Third-party collaboration

Nr of innovation projects conducted with external parties

59

Innovation projects

Nr of innovations proposed per quarter year

Nr of innovations implemented per quarter year

51

IS development efficiency

Nr of change requests (+per type of change or per project)

Time spent to repair bugs and finetune new applications

Time required to develop a standard-sized new application

% of Application programming with re-used code

6, 58, 66

Relative IT/IS budget

[Total IT/IS budget]/[Total revenue of the organization] * 100

58

Budget for buying IT/IS

[Budget of IT/IS bought]/[Total budget of the organization] * 100

59

Budget for IS training

[IS training budget]/[overall IS budget] * 100

58

Budget for IS research

[IS research budget]/[overall IS budget] * 100

58

Perceived management competence

Qualitative scale (e.g., Likert) on the improvement in project management, organizational capability, and management by objectives (MBO)

57

Perceived relationship between IT management and top management

Qualitative scale (e.g., Likert) on the perceived relationship, time spent in meetings between IT and top management, and satisfaction of top management with the reporting on how emerging technologies may be applicable to the organization

58

4.2/Employee performance

Perceived employee satisfaction

Qualitative scale on general satisfaction (e.g., Likert), possibly indexed as the weighted sum of judgements on satisfaction dimensions

Qualitative scale (e.g., Likert) on satisfaction about hardware and software provided by the organization

16, 43, 11, 57, 58, 59

Average employee saturation, resource utilization for process work

[Time spent daily on working activities]/[total working time] * 100

[Work time]/[available time]

 % of operational time that a resource is busy

3, 40, 46

Resource utilization for (digital innovation)

IS expenses per employee

% of Resources devoted to IS development

% of Resources devoted to strategic projects

58

Process users

Nr of employees involved in a process

37

Working time

Actual time a business process instance is being executed by a role

20

Workload

Nr of products or services handled per employee

71

Staff turnover

% of Employees discontinuing to work and replaced, compared to the previous year

16, 57, 58

Employee retention, employee stability

% of Employees continuing to work in the organization, compared to the previous year

16, 57, 58, 59

Employee absenteeism

[Total days of absence]/[total working days for all staff] * 100

59

Motivation of employees

Average number of overtime hours per employee

16

Professional training, promotion and personal development

% of Employees trained

% of Employees participated in a training program per year

Nr of professional certifications or training programs per employee

57, 59, 22

Professional conferences

% of Employees participating in conferences

59