KPI Dictionary ABRIDGED SAMPLE. A KPI Reference Guide for Use in Performance Management. Utilities Operations

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1 KPI Dictionary Utilities Operations A KPI Reference Guide for Use in Performance Management ABRIDGED SAMPLE Do you need a customized KPI Dictionary for your organization? Contact us - we're ready to help. Call: info@opsdog.com Prepared for J. Smith

2 Table of Contents Utilities Operations: KPI Dictionary SAMPLE Data Dictionary Legend Utilities Operations - KPI Reference A. Finance & Accounting B. Collections # C. Energy Efficiency Programs # D. Information Technology # E. Engineering # F. Billing # G. Operations & Maintenance (O&M) # H. Customer Service/Call Center # This content may not be copied, distributed, republished, uploaded, posted or transmitted in any way without the prior written consent of OpsDog, Inc. 1

3 Data Dictionary Legend How to Use & Interpret This Data Dictionary SAMPLE = Data Available for Benchmarking A unique identifier for the KPI. The title of the KPI. The organizational area that the KPI is most closely related to. A concise definition for the KPI. Indicates the broad operational focus on the KPI. Indicates whether a high or low value for the KPI suggests high performance. Reasoning related to why the KPI should be implemented and monitored. Rules related to correctly calculating a numeric value for the KPI. The mathematical formula that should be used to derive the KPI. A1 Days to Close (Quarterly) Finance & Accounting > Controller Group The average amount of time (measured in days) required for the Finance Department to close their books and submit finalized financial reports to management and regulatory authorities at the end of the quarter, from the time that the necessary information to close the books is gathered until the time that management and regulatory authorities receive the financial reports. KPI Type: Productivity Directional Significance: Low is Best This KPI measures the quality and efficiency of the Financial Close & Reporting process. A high value for this metric may be attributed to several factors - highly manual report generation, overcomplicated accounting practices (e.g., non-standard chart of accounts, general ledger reconciliation issues, too many data sources, etc.), inexperienced finance staff members and/ or changes regulatory requirements can impact performance. Poor performance may diminish organizational capacity, report accuracy and timeliness, and the company's standing with regulatory agencies. The calendar dates of two events are used to derive this KPI: (1) the date at which all the necessary information to close the books is gathered (e.g., investor information, balance sheet info, income statements, etc.), and (2) the date at which all financial reports (and related documentation) are finalized and sent to both management and regulatory authorities. To calculate a quarterly average for this KPI, take the sum of days to close for the two most recent quarterly close processes and divide that value by 2. (Sum of Days to Close for Last 2 Quarters) / 2 2

4 SAMPLE Utilities Operations Utilities Operations A. Finance && Accounting B. Collections C. Energy Efficiency Programs D. Information Technology E. Engineering F. Billing G. Operations & Maintenance (O&M) H. Customer Service/Call Center KPIs Included: A1. Days to Close (Quarterly) A2. Percentage of Invoices Paid On-Time A3. Percentage of Accounts Receivable Beyond 60 Days A4. Days Sales Outstanding (DSO) A5. Days Payable Outstanding (DPO) A6. Cash Conversion Cycle (CCC) A7. Unit Cost: Invoice Processing A8. Vendor Payment Error Rate A9. Invoices Processed per AP Employee A10. Percentage of Invoices with Purchase Orders A11. First Time Match Rate (FTM) A12. Automatic Cash Application Rate A13. Journal Entry Error Rate A14. Finance Report Error Rate (Internal) A15. Finance Report Error Rate (External) A16. Effective Tax Rate A17. Percentage of Taxes Filed On-Time A18. Payroll Processing Accuracy Rate A19. Budget Forecast Accuracy (Variance) A20. Cash Position Determination Cycle Time 3

5 SAMPLE Finance & Accounting Utilities Operations: KPI Dictionary = Data Available for Benchmarking A1 Days to Close (Quarterly) Finance & Accounting > Controller Group The average amount of time (measured in days) required for the Finance Department to close their books and submit finalized financial reports to management and regulatory authorities at the end of the quarter, from the time that the necessary information to close the books is gathered until the time that management and regulatory authorities receive the financial reports. KPI Type: Productivity Directional Significance: Low is Best This KPI measures the quality and efficiency of the Financial Close & Reporting process. A high value for this metric may be attributed to several factors - highly manual report generation, overcomplicated accounting practices (e.g., non-standard chart of accounts, general ledger reconciliation issues, too many data sources, etc.), inexperienced finance staff members and/or changes regulatory requirements can impact performance. Poor performance may diminish organizational capacity, report accuracy and timeliness, and the company's standing with regulatory agencies. The calendar dates of two events are used to derive this KPI: (1) the date at which all the necessary information to close the books is gathered (e.g., investor information, balance sheet info, income statements, etc.), and (2) the date at which all financial reports (and related documentation) are finalized and sent to both management and regulatory authorities. To calculate a quarterly average for this KPI, take the sum of days to close for the two most recent quarterly close processes and divide that value by 2. (Sum of Days to Close for Last 2 Quarters) / 2 A2 Percentage of Invoices Paid On-Time Finance & Accounting > Accounts Payable The number of vendor invoices paid by the company on or before their original due date as a percentage of total invoices paid over the same period of time. KPI Type: Quality Directional Significance: High is Best This KPI measures the organization's adherence (or lack of adherence) to established credit terms, as specified in the terms of the invoice, or within supplier contracts. An excessive volume of late invoices may adversely effect credit terms that have been negotiated with certain suppliers. In addition, certain suppliers may provide discounts for repeatedly paying bills on-time or early (i.e., cost avoidance). Poor performance for this KPI is typically related to highly manual payment processes or ineffective communication practices within the AP department. Two values are used to calculate this KPI: (1) the number of invoices paid on-time, and (2) the total number of invoices paid during the measurement period. An invoice that is paid on-time should be counted as any payment made by the company to a third party vendor on or before the due date outlined in the invoice, or in an executed vendor contract. Any invoice that requires an extension, or is not paid on or before the originally defined due date, should not be counted in the numerator for this calculation. The denominator for this calculation should include the total number of invoices successfully paid (on-time or otherwise) during the measurement period. (Number of Invoices Paid On-Time / Total Invoices Paid) * 100 4

KPI ENCYCLOPEDIA. A Comprehensive Collection of KPI Definitions for PROCUREMENT

KPI ENCYCLOPEDIA. A Comprehensive Collection of KPI Definitions for PROCUREMENT KPI ENCYCLOPEDIA A Comprehensive Collection of KPI Definitions for PROCUREMENT www.opsdog.com info@opsdog.com 844.650.2888 Table of Contents KPI Encyclopedia Metric Definitions.............................