KPI Definition Template & Example Library

{ "Title": "KPI Definition Template & Example Library", "IntroductionHtml": "

Why define KPIs this way?

Clear KPI definitions reduce confusion, avoid accidental incentives, speed decisions, and make measurement auditable. Use this form to capture a precise, actionable definition every time you create a measure. Each field helps connect the metric to a real decision or action.

How to use this template

1. Give the KPI a short, action-oriented name.
2. Write the primary question this KPI answers (the decision it supports).
3. Provide a precise formula and list concrete data sources.
4. Assign a single owner and a cadence for updates.
5. Document tolerances/target and an action playbook that explains what to do when the KPI is out of range.

Quick examples (short form)

• Activation rate — formula: activated_users / new_signups; owner: Product; cadence: daily. Common mismeasure: counting duplicate signups.
• LTV / CAC — formula: lifetime_value / customer_acquisition_cost; owner: Finance/Marketing; cadence: monthly. Mis-measure: mixing cohort windows.
• Overall Equipment Effectiveness (OEE) — formula: availability * performance * quality; owner: Plant Ops; cadence: shift/daily. Mis-measure: inconsistent downtime categorization.
• Mean Time to Repair (MTTR) — formula: total_repair_time / number_of_repairs; owner: Maintenance; cadence: weekly. Mis-measure: excluding setup/diagnosis time.
• Days Payable Outstanding (DPO) — formula: (accounts_payable / cost_of_goods_sold) * days_in_period; owner: Finance; cadence: monthly. Mis-measure: inconsistent supplier invoice dates.
• Customer Churn Rate — formula: customers_lost / customers_at_start; owner: Customer Success; cadence: monthly.
• Net Promoter Score (NPS) — formula: %promoters - %detractors; owner: CX; cadence: quarterly. Mis-measure: low sample size without segmentation.
• On-Time Delivery — formula: orders_delivered_on_time / total_orders; owner: Logistics; cadence: daily/weekly. Mis-measure: inconsistent definition of 'on time'.
• First Contact Resolution — formula: issues_resolved_first_contact / total_issues; owner: Support; cadence: weekly.
• Inventory Turnover — formula: cost_of_goods_sold / average_inventory; owner: Supply Chain; cadence: monthly.

If you want to build a library, save definitions using the form. Saved entries can later be bundled as a KPI catalog, linked to dashboards, or versioned for audit.

", "SubmitLabel": "Save KPI Definition", "SuccessMessage": "KPI definition saved to your library.", "DataType": "KPIDefinition", "SchemaVersion": "1.0", "Fields": [ { "Key": "kpi_name", "FieldType": "text", "Label": "KPI name", "Required": true, "HelpText": "Short, action-oriented name (e.g., 'Activation rate', 'OEE - Line 2')." }, { "Key": "primary_question", "FieldType": "textarea", "Label": "Primary question answered", "Required": true, "HelpText": "Write the decision or question this KPI helps answer (e.g., 'Are new users engaging in day 1?')." }, { "Key": "formula", "FieldType": "textarea", "Label": "Formula (explicit)", "Required": true, "HelpText": "Provide a precise formula. Include numerator, denominator, aggregation method, and time window (e.g., 'activated_users_7d / new_signups_7d')." }, { "Key": "numerator_definition", "FieldType": "text", "Label": "Numerator: explicit definition", "Required": false, "HelpText": "Exact event or column used as the numerator (table.column or event definition)." }, { "Key": "denominator_definition", "FieldType": "text", "Label": "Denominator: explicit definition", "Required": false, "HelpText": "Exact event or column used as the denominator (table.column or event definition)." }, { "Key": "data_sources", "FieldType": "textarea", "Label": "Data sources", "Required": true, "HelpText": "List each source (system, table, field, report) and the owner of that data. Note known data quality caveats." }, { "Key": "owner", "FieldType": "text", "Label": "Owner (single person or role)", "Required": true, "HelpText": "Person or role responsible for the definition, data quality, and follow-up actions (e.g., 'Head of Product', 'Plant Manager')." }, { "Key": "update_cadence", "FieldType": "select", "Label": "Update cadence", "Required": true, "Options": [ {"Value": "daily", "Label": "Daily"}, {"Value": "weekly", "Label": "Weekly"}, {"Value": "monthly", "Label": "Monthly"}, {"Value": "quarterly", "Label": "Quarterly"}, {"Value": "ad_hoc", "Label": "Ad-hoc / Event-driven"} ], "HelpText": "How often this metric is calculated and reviewed." }, { "Key": "direction", "FieldType": "select", "Label": "Direction: is higher better?", "Required": true, "Options": [ {"Value": "higher_better", "Label": "Higher is better"}, {"Value": "lower_better", "Label": "Lower is better"}, {"Value": "range", "Label": "Target range (both directions matter)"} ], "HelpText": "Choose how to interpret movement in the KPI." }, { "Key": "target_value", "FieldType": "number", "Label": "Target value", "Required": false, "HelpText": "Optional numeric target (use units consistent with the formula)." }, { "Key": "tolerances", "FieldType": "textarea", "Label": "Tolerances / acceptable ranges", "Required": false, "HelpText": "Define acceptable bounds, warning thresholds, and what counts as a breach. Be specific (e.g., 'target >= 90%; warning 85-90%; breach <85%')." }, { "Key": "action_playbook", "FieldType": "textarea", "Label": "Action playbook (what to do when KPI deviates)", "Required": true, "HelpText": "Step-by-step actions, owners for those actions, escalation path, and typical diagnostics to run. Link to runbooks where possible." }, { "Key": "related_metrics", "FieldType": "textarea", "Label": "Related metrics / dependencies", "Required": false, "HelpText": "Other KPIs or raw metrics that explain or are affected by this metric. Helpful for root-cause work." }, { "Key": "measurement_notes", "FieldType": "textarea", "Label": "Measurement notes & common mismeasurements", "Required": false, "HelpText": "Known pitfalls, edge cases, modeling choices, data freshness expectations, and common mistakes to watch for." }, { "Key": "tags", "FieldType": "text", "Label": "Tags / categories", "Required": false, "HelpText": "Comma-separated tags (product, marketing, finance, ops, plant-line-2, customer-success). Useful for filtering the KPI library." }, { "Key": "notes_for_review", "FieldType": "textarea", "Label": "Notes for review / version comment", "Required": false, "HelpText": "Short note describing why this definition was created or changed (for the audit trail)." } ] }