KPI Performance Calculations

Calculation Method

Description

Formula

Less is Better

• Where it is desirable to get the lowest possible value for the KPI Actual

• Where a result lower in value to the target will result in a green light  
  

• Example: Interest ratio (interest on borrowings/total expenditure)
  Target 10% | Actual 8%

If (Target = 0)

          If (Actual <= 0) then 100

         Else 0

If ( Target > 0

          1 – (Actual/Target) + 1

Else

          Actual/Target

More is Better

• Where it is desirable to get the highest value possible for the KPI Actual

• Where a result higher in value to the target will result in a green light

• Example:  Customer Satisfaction
  Target 85% | Actual 95%

If (Target = 0)

          If (Actual >= 0) then 100

         Else 0

Else

         Actual/Target

Goal Post

• Where it is desirable to get the KPI Actual around the Target value within the Variance

• Where achievement of the target results in a green light

• Example: Achievement of Budget
  Target $3,000,000 ± 5% | Actual $2,950,000

If Actual < LB then: (Actual/LB)

If Actual > UP then: LB-(Actual – UB)/LB

UB (Upper Boundary) = Target +(Target*Variance/100)

LB (Lower Boundary) = Target - (Target*Variance/100)