There is calculation of KPI in the Excel: examples and formulas

KPI – is the Performance Indicator, which allows objectively evaluates the effectiveness of workflow. This system is used for evaluate of different indicators (the activity throughout the company, separate structures, specific experts). It performs not only control functions, but also stimulates the labor activity. Often based on KPI is based wage system. This is formation technique of the variable part of the salary.



KPI key performance indicators: examples in Excel

The stimulating factor in the system of motivation KPI – is the compensation. To get it may be that an employee, who has fulfilled the task set before him. The prize amount / bonus, depends from the result of a particular employee in the reporting period. The compensation amount may be fixed or be expressed as a percentage of salary.

Each enterprise determines to the key performance indicators and the weight of each individual. Dates are depended from the company's tasks. For example:

  1. The purpose - to provide product sales plan of 500 000 rubles monthly. The key performance indicator - is the sales plan. The system of measurement: there are the actual amount of sales / the planned sales amount.
  2. The task - to increase the amount of shipments in the period by 20%. The key indicator – is the average amount of shipment. The system of measurement: is the actual average value of the shipment / planned average value of the shipment.
  3. The task - to increase the number of customers by 15% in a particular region. The key indicator – is the number of clients in the company database. The system of measurement: the actual number of customers / the planned number of customers.

The coefficient of variation (scales), the company also defines by itself. For example:

  1. The implementation of the plan less than 80% - is unacceptable.
  2. The implementation of 100% of the plan - the coefficient is 0, 45.
  3. The implementation of the plan 100 - 115% - the coefficient is 0. 005 for every 5%.
  4. The absence of errors – the coefficient is 0. 15.
  5. During the reporting period there were no comments – the coefficient is 0. 15.

This is only the option definition of motivational factors.

The key point in measuring of KPI – is the actual to planned ratios. Almost always the wages of an employee is made up of salary (fixed part) and premium (the variable part /the changeable part). The motivational factor affects the formation of variable part.

Suppose that the ratio of the fixed and the variable parts of the salary - 50 × 50. The Key Performance Indicators and the weight of each of them:

key performance indicators.

Assume the following meanings of the coefficients (the same ones for 1 indicator and indicator 2):

KPI Table in Excel:

KPI Table in Excel.

The explanations:

The explanations.
  1. The salary – is the permanent part of the salary depends on the number of hours worked. For the convenience of calculations we assumed that the fixed and the variable part of the salary are equal.
  2. The percentage of the sales plan and the work plan are calculated as the ratio of actual performance to planned ones.
  3. For calculation of the premium are used to the coefficient. The formulas in Excel KPI calculation for each an employee. Perform sales: Scope of work: We accepted that the impact of the index 1 and the index 2 for the amount of the premium are the same. The values of the coefficients are also equal. Therefore, for the calculating of the index 1 and the index 2 are used the same formulas (change only the cell references).
    4. change only the cell references.
  4. The formula for calculating of the amount of premium to be accrued: =C3*(F3+G3). The planned premium multiplied on the sum of the index 1 and the index 2 for an each employee.
  5. The wage - salary + premium.

This is the exemplary KPI table in Excel. An each company makes its own a table (with taking into account the characteristics of the work and bonus system).



KPI matrix and the example in Excel

Assessment for employees on the key indicators is compiled the matrix, or an agreement on the objectives. The general form is as follows:

KPI matrix.
  1. The key indicators – the criteria for evaluating the work of the staff. They are different for each position.
  2. The weights – the numbers in the range from 0 to 1, the total sum of which is equaled 1. Reflect the priorities of each the key indicator taking into account the company's objectives.
  3. The base – is the allowable minimum value of the index. Following baseline – is not of any result.
  4. Norma – the planned level. What that an employee must perform necessarily. Below - the employee did not cope with his responsibilities.
  5. The purpose – is the value for which to aspire. The excess indicator that allows to improve the results.
  6. The fact – is the actual results.
  7. The KPI Index shows the level of results in relation to the norm.

The calculation of the formula KPI:

KPI Index = ((Fact - Base) / (Norm - Base)) * 100%.

How to fill in the matrix for an office manager:

matrix for an office manager.

The performance ratio – is the average Index KPI: =AVERAGE(G2:G6). The evaluating of the employee is clearly shown using conditional formatting.

The practical application of a KPI report on a dashboard can be viewed and downloaded here:

KPI Panel Summary Dashboard for managing KPI plans in Excel.

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