5 Must-Have Operational KPIs to Measure Business Productivity

Maximizing the operational productivity of their organizations has always been the core focus of businesses across the globe. For this operational KPIs were brought into the equation.

Operational KPIs encompass the quantifiable value expressing business performance over a certain period of time.

Operational metrics and KPIs can be employed to track business productivity and performance and various organizational processes.

Assimilating operational KPIs not only addresses the business productivity equation but also helps improve the efficiency of the businesses as they can handle their employee resources better.

Employing operational KPIs and performance management as the indispensable strategies to business operations allows businesses to understand and reflect on the outcomes.

Harvard Business Review states that most employees want to be productive, however, their organizations more often don't provide them with an ideal environment to do so.

Measuring business productivity allows companies to make operational changes, add employees and take proper care of their onboarding and adds proper tools and equipments that not only help the businesses meet their deadlines but also helps them create an ideal environment for employees to keep them motivated to deliver to their fullest potentials at work.

Business productivity of a company is adversely impacted due to several reasons which can compound over a while giving rise to what is called organizational drag.

These organizational drags adversely influencing business productivity and management can erupt in the form of structures and processes that adversely impact the productivity of employees by consuming too much of their organizational time.

Every employee has unique competency and they have the potential to positively impact their businesses in various ways. The real problem though is that at times they may lack the additional ingenuity and creativity required to boost productivity.

Inspired employees bring more discretionary energy at work and hence companies need to promote the productivity mindset by bringing various operational KPIs and production management into the equation.

Here are 5 operational KPIs that will help your organization hit your productivity goals:


1)   Sales KPIs

Sales KPIs play a crucial role in customer acquisition measurement and management.

The organizations can introspect the levers that their teams need to focus on to maximize their sales closures and should clearly define the bottom-line results that they are trying to accomplish.

Some of these goals may be:

a) The total number of deals closed

b) Total contracts fetched from networking

c)  Total number of calls made or trade shows attended

d)  Total number of social media posts or blogs written and

e)  The total number of customers acquired and retained

2) The KPIs aligned with Customer Satisfaction 

 Customer experience management is one of the most important focal points for modern marketers.

To architect the best service experience for its customers the service team of a brand can focus on the following factors:

a)  Meeting SLAs (service level agreement)

b)  Customer Satisfaction

c)  Total number of client issues resolved

d)  Call pick up and Abandonment Rate

e)  Order Accuracy and Reworking and

f)   Working to Improve the Net Promoter Score (NPS)


3) Measuring Multifactor Productivity by Leveraging the Quantitative KPIs

To manage the business productivity and management of their product lines and keep a track of the inputs and outputs needed to produce a product, businesses leverage the quantitative manufacturing KPIs.

The key operational metrics and KPIs in this regard may be the following:

a)  Operating Rates

b)  Overall Equipment Effectiveness

c)   Reject Ratio

d)   Downtime

e)   Raw Materials

f)    Number of parts produced, and

g)    Measuring Output


4) Core Business Productivity KPIs

These KPIs allow marketers to measure the levels of productivity. Important financial metrics should be taken into consideration and monitored to ensure that your business is operating at the best.

These include:

a)  Labor Utilization

b)  Employee Turnover and Attrition Rate

c)   Labor Materials and Operating Margins

d)   Training

e)   Customer Lifetime Value (CLV)

f)    Processes and Procedures Devised

g)   Cash Flow

h)   Leveraging the Rhythm Strategy Execution Software, organizations can measure:


1)   Their priority targets and Quarterly Rocks Completed

2)   Their Weekly and Monthly Targets Completed, and

3)   The Number of Action List Completed or Overdue


5) Financial KPIs Aligned With Business Bottom lines

To monitor and get a pulse of the financial health of their businesses, marketers need to measure the financial numbers such as:

a)  Revenue

b)  Profit

c)  Gross Margin


e)  Quick Ratio and

f)   Team Effectiveness Ratio


Wrap Up

Proper planning and measurement of operational KPIs prevent your organization from falling into the trap of organizational drag. The above KPI examples can help you optimize your business productivity and operational goals.

Moreover, you can also employ the Rhythm Software System to properly initiate and execute your operational KPI strategy.

Some of the above KPIs may be measured in real-time while others may take some time. Remember, measuring your productivity goals is imperative to optimize the bottom lines aligned with them.

About the author

Priya has about 6 years of experience in Market Research. Currently, she is working for Valasys Media, as a content writer, which is one of the top global business consulting companies. They provide their clients with an array of services such as Lead Generation, Database Management, Information Technology - IMS, Account-Based Marketing to name a few. Their services are personalized to help the clients meet their business goals & optimize their Return on Investment (ROI). She has been preparing several personalized reports for our clients & has done a lot of research on market segmentation, cluster analysis of audiences & inbound methodologies. She has worked with government institutes as well as corporate houses in several projects.


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