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Table 8 The list of performance indicators with operationalization

From: Business process performance measurement: a structured literature review of indicators, measures and metrics

Perspectives Indicators/measures/metrics Operationalization Papers
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