The KPI template above works out achievement and status for each indicator, then the weighted performance of the company or of one employee, and it builds a performance charter that the employee and their manager sign. Take it in Excel with every formula to update each month, or as a PDF to show in a meeting.
Achievement = actual ÷ target, reversed when lower is better. The retail store example has eight KPIs and a weighted performance of 90.8%: three met, two near target and three behind.
What key performance indicators (KPIs) are
Key performance indicators are a handful of numbers a business uses to track progress towards its goals, such as monthly sales, days sales outstanding or food cost. The KPI is what you measure; the target is the figure you want to reach on it: "days sales outstanding" is the KPI and "30 days" is its target. A good KPI has a written calculation method, a fixed measurement frequency, an owner who can influence it and a clear direction: higher is better or lower is better.
How to use the KPI template
- Pick the retail store, restaurant, distribution or human resources example and delete the rows that do not apply to you.
- Enter the target and actual, choose the direction, and spread the weights so they add up to 100%.
- Look at the KPIs that are behind first, and update the Actual column each month.
Employee KPIs
Employee KPIs are personal goals for a set period that the employee can influence. For a sales rep: sales, new customers and collection rate; for a cashier: cash drawer difference at closing and time to serve a customer. The human resources example covers time to fill a vacancy, staff turnover and absence rate. Give the biggest weight to the KPI closest to the department's goal, as in the sales rep example: sales carry 40% of five KPIs with a weighted performance of 93.2%. The performance charter gathers these KPIs and weights with a rating scale and a development plan, and downloads in Word for signing.
How to choose the right KPIs for your department
Start from the department's goal, then ask which number proves it was met. Balance outcome KPIs (sales, gross margin) with the activity KPIs that come before them (daily visits, share of visits ending in an order): the first tell you what happened, the second warn you before it happens. Keep to five to eight KPIs per department; more than that scatters attention.
Reading the dashboard and acting on it
"Met" is 100% or more, "Near" is 90% to just under 100%, and "Behind" is under 90%. Monthly sales have a target of SAR 450,000 and an actual of SAR 418,500, so achievement is 93% and the status is "Near". Days sales outstanding work the other way: 30 ÷ 36 = 83.3%, so the status is "Behind". A KPI behind for two months in a row needs a written cause and a correction plan with a named owner. The weighted score caps each KPI at 100%, so beating an easy target cannot hide a miss on an important one.
Common KPI mistakes
- Twenty KPIs for one department.
- A KPI with no written calculation method, so everyone works it out differently.
- A "lower is better" KPI calculated as actual ÷ target, so an increase looks like progress.
Before you tie KPIs to incentives
Linking KPI results to bonuses or promotions follows the company's approved internal work regulations under the Saudi Labor Law, and employees should be told the rules before the period starts. The percentages in the rating scale are examples you can change.
When KPI figures arrive a week late every month
Microtec accounting software brings sales, purchasing, inventory, finance and HR into one system for businesses in Saudi Arabia, so KPI figures come from a single source.
KPI template FAQ
Does the KPI template Excel file contain formulas?
Yes. Achievement, weighted score, status and the summary sheet are all formulas, and the blank file carries the same formulas without data.
How many KPIs should a department or an employee have?
Five to eight for a department, and three to six for an employee with weights that add up to 100%, agreed with the employee at the start of the period.
How do I calculate achievement when lower is better?
Divide the target by the actual. A target of 30 days sales outstanding against an actual of 36 gives 30 ÷ 36 = 83.3%. Choose "Lower is better" in the Direction column and the sheet does this for you.
Does the template work for individual reviews?
Yes. The Employee KPI template tab holds one person's KPIs, with sales rep and cashier examples, and feeds the performance charter that the employee and manager sign.
Is the KPI template free?
Yes, every tab and file. We ask for your name, email and mobile number once before your first download, and what you type stays in your browser.