case study of kpi

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KPI Examples and Templates

Find the right KPIs for your business. This guide provides examples, templates and practical advice to help you define the key performance indicators that matter most for your organization and teams.

KPI EXAMPLES GUIDE

What is a kpi.

Let’s start with the basics. A key performance indicator (KPI) is a quantifiable measure of performance over time for a specific strategic objective. Business leaders and senior executives use KPIs to judge the effectiveness of their efforts and make better informed decisions.

KPIs vs Metrics

What’s the difference between a KPI and a metric?

KPIs represent how you’re performing against strategic goals. And by goals, we mean specific business outcomes, such as targeted quarterly revenue or targeted new customers per month.

Metrics support KPIs by representing the tactical processes or actions necessary to achieve the KPIs. Metrics track and measure the success against targets for specific actions such as monthly brochure downloads or store visits.

More resources:

Dive deeper on the question, “ What is a KPI? ”

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10 steps to strong KPIs

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170 KPI examples and templates

170 KPI Examples And Templates

In this guide, we’ve identified and prioritized the most impactful key performance indicators examples for each department. Use the table of contents below to find the KPI examples most relevant to your organization and teams.

Project Management

Customer Service

Human Resources

Social Media

Sales KPI Examples

Sales leaders and their teams need to track the key performance indicators that help them close more orders. Below are the 15 essential sales KPI examples:

New Inbound Leads

Lead Response Time

Lead Conversion %

New Qualified Opportunities

Total Pipeline Value

Lead-to-Opportunity %

Opportunity-to-Order %

Average Order Value

Average Sales Cycle Time

Cross-Sell %

Sales Volume by Location

Sales Change (YoY, QoQ. MoM)

Sales Target %

Learn more about Sales Dashboards

KPIs for Managers

Executives and managers need KPIs that reflect their organization’s strategic priorities. Below are the 15 key management KPI examples:

Customer Acquisition Cost

Customer Lifetime Value

Customer Satisfaction Score

Sales Target % (Actual/Forecast)

Sales by Product or Service

Revenue per FTE

Revenue per Customer

Operating Margin

Gross Margin

ROE (Return on Equity)

ROA (Return on Assets)

Current Ratio (Assets/Liabilities)

Debt to Equity Ratio

Working Capital

Employee Satisfaction Rating

Learn more about Executive Dashboards

Project Management KPIs

Project managers need to keep projects on time and on budget while also ensuring a high quality outcome. That’s why the 15 key performance indicators examples below focus on timeliness, budget and quality.

On-Time Completion %

Milestones on Time %

Estimate to Project Completion

Adjustments To Schedule

Planned vs. Actual Hours

Resource Capacity %

Budget Variance (Planned vs Actual)

Budget Iterations

Planned Value

Net Promoter Score

Number of Errors

Customer Complaints

Change Requests

Billable Utilization

Return On Investment (ROI)

Explore dashboard demos

Inspire Action With Your KPIs

10 ways to take your data visualizations to the next level. Learn how to choose the right ones to highlight your KPIs and metrics.

Marketing KPIs

Marketing leaders need to track KPIs which enable them to measure their progress against clearly defined goals. The 15 marketing KPI examples below cover all phases of the customer funnel and can be accurately tracked using  modern marketing analytics .

Marketing Qualified Leads (MQLs)

Sales Qualified Leads (SQLs)

Cost per Lead

New Customers

Cost per Acquisition

Upsell & Cross-Sell Rates

Conversion Rates (For Specific Goals)

Social Program ROI (By Platform)

Organic Traffic & Leads

Return on Ad Spend (ROAS)

Total Revenue

Revenue by Product or Service

Customer Lifetime Value (CLV)

Net Promoter Score (NPS)

Learn more about  Marketing KPIs and Marketing Dashboards

Operations KPIs

Operations managers need to track KPIs around efficiency, effectiveness and quality as covered in the 15 key performance indicators examples below.

Labor Utilization

Employee Turnover Rate

Employee Absence Rate

Employee Training Rate

ROI of Outsourcing

Labor Materials

Operating Margins

Processes and Procedures Developed

Project Schedule Variance

Order Fulfilment Cycle Time

Delivery In Full On Time Rate

Rework Rate

Learn more about KPI Dashboards

Customer Service KPIs

Service and support teams should focus on KPIs that measure response times. But, like the 15 key performance indicators examples below, they should also have a clear view of the customer base and longer term, preventative KPIs such as employee engagement and knowledge base articles.

Number of Issues (By Type)

First Response Time (FRT)

First Contact Resolution Rate

Average Response Time

Average Resolution Time

Most Active Support Agents

Cost Per Conversation

Customer Satisfaction Score (CSAT)

Positive Customer Reviews

Customer Effort Score

Customer Retention Rate

Support Costs / Revenue Ratio

Knowledge Base Articles

Employee Engagement

Explore more dashboard examples

Finance KPIs

Financial teams have no shortage of ratios and metrics to track. Finance managers and CFO’s should use a  financial analytics  tool to focus on margin, expense, revenue and cash management as shown in the 15 key finance KPI examples below.

Gross Profit Margin (and %)

Operating Profit Margin (and %)

Net Profit Margin (and %)

Operating Expense Ratio

Working Capital Ratio

Debt-To-Equity Ratio

Quick Ratio (Acid Test)

Current Ratio

Berry Ratio

Return on Assets

Cash Conversion Cycle

Accounts Payable Turnover Ratio

Accounts Receivable Turnover Ratio

Budget Variance

Payroll Headcount Ratio

Learn more about Financial Dashboards

Human Resources KPIs

HR managers are primarily concerned with 3 main areas: workforce management, compensation and recruitment. You can use a  people analytics  tool to track and analyze the 35 key performance indicators examples below:

Workforce Management KPIs:

Absenteeism rate

ROI of outsourcing

Succession planning rate

Open/closed grievances

Promotion rate

Time to productivity

Successor gap rate

Worker composition by gender, experience, and tenure

Internal mobility

Manager quality index

HR effectiveness

Employee satisfaction rates

Training ROI

Compensation KPIs:

HR functional operating expense rate

Labor cost per FTE

Labor cost revenue percent

Labor cost revenue expense percent

Total benefits as percentage of labor costs

Profit vs. compensation per FTE

Human capital ROI

HR functional cost per employee

Recruitment KPIs:

Quality of hire

Vacancy rate

Turnover rate

Resignation/retirement rate

External hire rate

Time-to-fill

Diversity, experience, and gender hire ratio

Recruiting funnel metrics

Talent import/export ratio

Voluntary turnover rate

Retention rate

Recruiting expense per new hire

Retirement rate forecast

Learn more about HR Dashboards

IT managers should track the on-going stream of support tickets and downtime. They should also track the projects and the team that will proactively reduce the number of these tickets in the future as shown in the top-15 IT KPI examples below.

Total Support Tickets

Open Support Tickets

Ticket Resolution Time

Reopened Tickets

Average Time Between Failures

Average Time to Repair

Server Downtime

Security Related Downtime

Total Projects

Projects on Budget

Critical Bugs

IT Support Employees Per End Users

IT Costs vs Revenue

IT Team Turnover

Social Media KPIs

Social media managers should have KPIs that represent reach, engagement, and conversion to revenue. The 15 social media key performance indicators examples below should be applied both as totals and for each social media platform that your organization is active on.

Social Share of Voice (SSoV)

Total Reach

Total Impressions

Followers or Fans or Subscribers

Audience Growth Rate

Share Rate (Shares or ReTweets)

Interest Rate (Likes, Reactions, Favorites)

Response Rate (Comments, Replies)

Key Post or Hashtag Reach

Link Clicks

Site Traffic From Social (By Platform)

Conversions From Social

Conversion Rate From Social

Revenue From Social

Social Program ROI

Learn more about Marketing Dashboards

How to Define the Right KPIs

Who, what, how. Be clear about who the audience is, what they want, and how they’re going to use the KPIs. This means working with your stakeholders to identify the core KPIs that map directly to their goals and strategy.

Be SMART. This popular acronym stands for Specific, Measurable, Attainable, Realistic, and Time-bound. This is a useful touchstone whenever you’re considering whether a metric should be a key performance indicator. SMART KPI examples are KPIs such as “revenue per region per month” or “new customers per quarter”.

Iterate and evolve. Over time, see how you or your audience are using the set of KPIs and if you find that certain ones aren’t relevant, remove or replace them.

See KPI Dashboards in Action

KPI Case studies in action

Nov 6, 2023 | KPIs

Key Performance Indicators (KPIs) are more than mere numbers on a dashboard; they are vital signs that indicate the health and direction of a business. Like any powerful tool, the value they deliver hinges on their existence and thoughtful application. Through the lens of case studies, we gain a profound understanding of the dynamics that drive successful KPI implementation and the cautionary tales that remind us of potential pitfalls. In this exploration, we’ll delve into real-world scenarios where KPIs have acted as beacons leading to commercial triumph and those instances where they’ve served as misleading signals, spiralling businesses into challenges.  These stories are not just narratives but practical lessons carved out of the corporate frontlines, offering a blueprint for what to emulate and avoid. By dissecting these case studies, we equip ourselves with the wisdom to navigate the intricate world of performance metrics, ensuring that the KPIs we choose are not just numbers but actionable insights that steer us towards our intended strategic destinations. Join us on this journey as we unravel the tales of KPIs in action, where each success and failure brings us closer to mastering the art of performance measurement.

The Anatomy of a Successful KPI Strategy

A strong KPI strategy works like a compass. It guides a company towards its goals using well-chosen KPIs as its direction points. Each KPI should be SMART – this means it’s Specific, Measurable, Achievable, Relevant, and Time-bound. These KPIs show us clearly what success looks like.

But it’s not just about picking KPIs. Everyone in the company needs to understand and work with them. This involves regular meetings to discuss the KPIs and see if they still point the company in the right direction.

Also, a good KPI strategy is woven into the day-to-day work. It makes sure that the insights from KPIs lead to real changes and improvements. It’s transparent, meaning it’s clear who is responsible for what, and it’s easy to see how things are going.

And finally, a good strategy can change if needed. It can adapt when there’s new information, when the market changes, or when the company’s goals change. This way, the strategy stays useful and keeps guiding the company to success. The following KPI case studies will illustrate these points.

Case Study 1: A Triumph of KPI Alignment

Let’s talk about a company that got it right with KPIs. We’ll call them “TechGrow,” a tech company eager to expand its market share. They wanted to grow their customer base by 25% in one year. To do this, they needed clear KPIs.

TechGrow set up a KPI to track new sign-ups every month. This KPI was SMART: specific to their goal, measurable by numbers, achievable with their resources, relevant to their growth aim, and time-bound within the year.

They also kept an eye on customer feedback scores. This wasn’t just about getting more customers but keeping them happy, too. So, another KPI tracked the average support ticket resolution time.

Here’s what they did well:

• They ensured their whole team knew about the KPIs and how each person could help meet them.
• They had monthly check-ins to see how they were doing against their KPIs.
• When they saw one KPI wasn’t moving as expected, they were quick to figure out why and fix it.

By the end of the year, not only had TechGrow hit their customer growth target, but their customer satisfaction had also gone up. Their KPIs were the stars of the show, shining a light on where to go and what to fix along the way. 

Case Study 2: Turning Data into Action

Meet “HealthFirst,” a healthcare provider who wanted to use KPIs to give better care and improve their services. Their main goal was to reduce patient waiting times by 15%. To track their progress, they chose a KPI that measured the average time patients spent in the waiting room.

HealthFirst used this KPI to see how they were doing each week. But they didn’t stop at just looking at the numbers. They used this data to make fundamental changes. For example, when they noticed waiting times were extended because of too few staff at peak times, they changed the staff schedules.

They also set up a KPI for patient follow-ups. They wanted to ensure patients were called for a check-up within a week after their visit. This helped them care for patients even after they left the clinic.

What HealthFirst did well was:

• They chose KPIs directly linked to their primary goal: better patient care.
• They checked their KPIs regularly and used what they learned to make decisions.
• They ensured everyone on their team understood the KPIs and knew how to help reach them.

By the end of their project, HealthFirst didn’t just meet their goal – they beat it. Patient waiting times were down by 20%, and their follow-ups were better than ever. Their story shows us that when you take action based on what KPIs tell you, you can make things better.

The Pitfalls of Mismanaged KPIs

KPIs are powerful, but like all powerful tools, they can cause problems if not used right. Imagine using a map with the wrong directions – it’s easy to get lost. It’s the same with KPIs. If they’re not managed well, they can lead a company in the wrong direction.

Here’s what can go wrong:

• Sometimes, companies pick too many KPIs. It’s like juggling too many balls ; they’re bound to drop one. It’s better to focus on a few that matter.
• Other times, the KPIs they choose don’t match what they’re trying to achieve. That’s like using a map of Paris when you’re trying to get around Tokyo.
• Companies might not check their KPIs often enough, or they might ignore what the KPIs tell them. Either way, it’s like having a warning light on your car dashboard and never fixing the problem.

In the following two sections, we’ll examine KPI case studies from companies that ran into these issues. They chose the wrong KPIs or didn’t use them well, and it caused trouble. But the good news is, there’s always a way back. These stories will show the mistakes to avoid and how to fix them if they happen.

Case Study 3: Lost in Translation – A KPI Misstep

Now, let’s talk about a company we’ll call “FashionForward,” a retail business that wanted to increase its sales. They decided to track the number of visitors to their website as their primary KPI, thinking that more visitors would mean more sales.

But here’s where they slipped up. They focused so much on increasing website traffic that they forgot about sales. Sure, the website got lots of visitors, but the number of people buying didn’t go up.

The problem was that they chose a KPI that wasn’t aligned with their ultimate goal – selling clothes. It’s like being excited that lots of people came to your party, but nobody ate the food you made.

FashionForward learned a few lessons:

• They learned that not any KPI will do. It has to be closely linked to the desired outcome.
• They realised it’s essential to check if your KPIs are working. If they’re not, you need to be ready to change them.
• They saw that everyone on the team needs to understand how their work helps to hit the KPIs and, in turn, reach the big goals.

Ultimately, FashionForward changed its KPI to track something more valuable: the conversion rate of visitors to buyers. This was a better way to see how well their website was selling. And with this new KPI, they started making changes that helped turn more visitors into customers.

Case Study 4: When KPIs Mislead – A Cautionary Tale

Let’s look at a company we’ll call “Build-It-Right,” a construction firm that wants to complete projects faster. They thought the best KPI to track their success would be the number of projects finished each month.

At first, this KPI made sense. But they didn’t think about the quality of the work. As they rushed to finish more projects, mistakes happened. And these mistakes led to redoing work, which cost time and money.

Here’s where Build-It-Right went wrong:

• They chose a KPI that only looked at speed, not at the work’s quality.
• They didn’t balance their KPIs. It’s like being fast in a race but forgetting to stay on track.
• They didn’t listen to their team, who were worried about rushing and making mistakes.

Build-It-Right realised that a better KPI would be the number of projects completed on time and with no mistakes. This new KPI helped them focus on doing the job well, not just quickly.

This story teaches us:

• It’s important to choose KPIs that match both the speed and quality of your work.
• It would help to have a balanced set of KPIs to ensure that you’re doing a good job overall.
• Always listen to your team. They often know best if a KPI takes things in the wrong direction.

With their new KPI, Build-It-Right started finishing projects with fewer mistakes and happier clients. They learned that the right KPI makes all the difference.

Lessons Learned and Recovery Paths

Looking at the stories of “FashionForward” and “Build-It-Right,” we can see that KPIs are more than just numbers—they’re signposts that guide businesses to their goals. But when these signposts point in the wrong direction, it’s time for a course correction.

Here’s what these companies KPI case studies revealed:

• Right KPI, Right Goal : KPIs must directly reflect your goals. If the goal is better sales, track sales conversions, not just website visitors.
• Balance is Key : Don’t focus on one KPI at the expense of others. Speedy project completion shouldn’t sacrifice quality.
• Flexibility : Be ready to adjust your KPIs if they’re not helping you reach your objectives. Being flexible means staying on the path to success, even if it’s not what you originally planned.
• Team Insights Matter : Your team’s feedback on KPIs can provide early warning signs of potential issues. Listen to them.

When KPIs misled these companies, they took steps to recover:

• They audited their KPIs to see which ones truly aligned with their goals.
• They started small, testing new KPIs on a few projects before rolling them out company-wide.
• They trained their teams on the importance of KPIs and how to use them effectively.
• They established regular review sessions to discuss KPI progress and any needed changes.

Both “FashionForward” and “Build-It-Right” came out stronger. They had a deeper understanding of how to set the right KPIs and pivot when necessary. And most importantly, they learned to value the journey of improvement as much as the destination of success.

In these recoveries, we find a universal lesson: KPIs are not set in stone. They’re a live part of your business strategy, evolving as you learn and grow. When you’re ready to adapt and realign, your KPIs become empowerment tools, driving you toward better performance and more remarkable achievements.

Integrating the Lessons into Your KPI Framework

The journey through these KPI case studies highlights a universal truth in business strategy: the power of Key Performance Indicators is not just in their ability to track progress but in their capacity to steer a company towards its desired destination. As we’ve seen, KPIs are most effective when they’re thoughtfully aligned with strategic goals, balanced across multiple dimensions of performance, flexible to shifts in the business landscape, and supported by the insights of a dedicated team.

Integrating these lessons into your KPI framework involves a commitment to continuous learning and adaptation. Whether you’re a budding startup or an established enterprise, the principles of effective KPI management remain the same: clarity of purpose, simplicity of measures, and responsiveness to feedback.

Now, it’s your turn to put these insights into action. With  Spider Impact KPI Software , you can craft a KPI framework that not only monitors progress but also empowers decision-making. Spider Impact helps you visualise your performance, identify areas of improvement, and make data-driven decisions with confidence.

Don’t let your business navigate in the dark. Illuminate your path to success with KPIs that reflect your true objectives and a tool that brings your data to life. Visit us at Intrafocus to learn how Spider Impact KPI Software can transform your data into actionable insights and drive your business forward.

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Case study: key performance indicators in local digital marketing.

• April 24, 2017

Finding, tracking and collating Key Performance Indicators (KPIs)* that demonstrate the performance of your online efforts has always been difficult in the local digital marketing space. But with upgrades in reporting at Google, Yelp and a newly minted web site, I took the opportunity to do just that in a case study with our favorite “guinea pig” Barbara Oliver Jewelry from the Buffalo, NY area.

Not only were we able to create a credible view of the drivers of her local business we were able to implement an in-store survey so as to be able to ascribe attribution to both her online and offline marketing efforts which we discuss in part 2 of this series .

What Is The Diamond Of Local Digital Marketing?

Barbara Oliver Jewelry created a new website last August 2016 and hired a new staffer to help with marketing. She has had an active presence on Facebook, has been doing review management with good success since 2009 , is running a very small Google Adwords Express campaign and starting last June started an active Google+ campaign.

She does have a Yext account (provided gratis by Yext) as well and a verified Yelp presence but has never advertised there.

Her high end jewelry store is located on the 3rd floor of an office building with zero walk in traffic and no street side presence. Her advertising budget is limited to a few key areas. Most money is spent on radio, some on a billboard, less on G+ and search optimization. She has been spending about the same on the Yellow Pages per quarter as on SEO. A tiny amount per quarter on Facebook boosts and GetFiveStars. Thus her potential sources of new customers are relatively clean and defined.

The last quarter of 2016 was a good time to implement a study of her KPIs and attempt to glean attribution via an in-store survey.

Local Digital Marketing KPIs

We wanted to explore the “low on the funnel” performance indicators and understand their relationship to new customer acquisition and purchases. Obviously there are many KPIs from which to choose. We identified the following as the digital components that were trackable and, given that there was no e-commerce component on her site, as close as we could get to the purchase*.

• Contact form fill
• FB messaging and comments expressing intent
• Clicks to call
• Request for driving directions

They were, in her case, the best indicators of intent.

With the new website we were sure to put in place event tracking for contact form fills, click to call actions and driving directions requests. For additional sources of this information we looked at dashboards at Yelp, Bing, Google, indexed all comments that showed intent at FB and tracked all of these in addition to those events on her website. While she has a Yext dashboard as well, they do not track any of these metrics from the websites that they post on.

We were able to track roughly 360 actions across all platforms and the sources of these actions broke out like this:

Clearly the largest percentage of these KPIs occurred directly on Google either from the Knowledge Panel, the Pack results, the Local Finder or Maps.  Typically in Barbara’s case, 70% of those come from search and 30% from Maps.

The website came in second. We have only done this study for one quarter and have no historical reference point. But my sense is that Google has, over the past two years, generally increased their share of these actions with changes to the Local search results. Due to issues with the WordPress theme not all instances of the phone number were tracked although most were.

Thus the website might be slightly under counted. Any conversions that came directly via an iPhone/Apple Maps would not have surfaced nor would have calls directly from iOS “direct answer” results and it is possible that iOS was undercounted as a result.

I was a little surprised that we found zero Bing actions according to their dashboard and our analytics. But such is the world of search.

It’s A Google World In Local

When we further looked into the web site traffic and its origination sources Facebook showed about a 3% increase in contribution. But most of the web traffic that initiated one of the KPI actions obviously came from Google.

In a very real sense, Google has become the equivalent of the new home page for the business. The bulk of direct pre-sale actions that benefitted the business were taking place there and the bulk of those that weren’t (ie web actions) came from Google.

While I don’t have the quantitative data to back this up, my sense is that Google is taking an increasing share directly compared to 4, 3 or even 2 years ago with various “updates” to the Local pack results.

Clearly there are some blind spots in our analysis but I think that they are directionally correct. And while it is only a case study, the methodology can be applied more broadly. It would be of interest to make the same analysis across different industries and markets to understand the amount of variation that we would find.

On a philosophical level the fact that more activity is taking place directly on Google is a disturbing trend, I for one do not want a web that is controlled at one end by Google and at the other by Facebook.  As to what a business should or could do to avoid this is unclear.

For now if you need leads, you need to be present on Google.

That being said any given business really doesn’t care where the new customers come from as long as they come. The local business needs to be aware of the fact that many (actually most) of their new customers are coming from Google and has in place a plan to really treat both keyword and branded search results as their primary interface to the world, then they should get their fair share of new customers.

In this new reality your website is just a data source, one amongst many, that feeds the Google results.

Read part 2 to take a look at the in-store attribution and how that correlated with these measured KPIs.

* The KPIs chosen for any given local business will vary depending on the type of business and their goals. Obviously an emergency plumber would be more interested in phone calls and driving directions would be totally irrelevant. In that case call tracking might provide very meaningful metrics. A dance studio might be more interested in form fills for class sign ups. A dentist that has scheduling on their site might more interested in actual conversions to an appointment.

There are a ton of possibilities of KPIs that have strong consumer intent to purchase. From my point of view the closer the KPI is to the purchase the better and since so much activity isn’t taking place on your website, ones that are measurable at sites besides your website make sense. A local business, unlike an e-commerce play, doesn’t really care if the activity is at Google, Yelp or their website and given the realities of the digital world has very little to say about it anyway.

Mike Blumenthal

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KPIs: What Are Key Performance Indicators? Types and Examples

What Are Key Performance Indicators (KPIs)?

Key performance indicators (KPIs) are quantifiable measurements used to gauge a company’s overall long-term performance. KPIs specifically help determine a company’s strategic, financial, and operational achievements, especially compared to those of other businesses within the same sector.

Key Takeaways

• Key performance indicators (KPIs) measure a company’s success vs. a set of targets, objectives, or industry peers.
• KPIs can be financial, including net profit (or the bottom line, net income), revenues minus certain expenses, or the current ratio (liquidity and cash availability).
• Customer-focused KPIs generally center on per-customer efficiency, customer satisfaction, and customer retention.
• Process-focused KPIs aim to measure and monitor operational performance across the organization.
• Businesses generally measure and track KPIs through analytics software and reporting tools.

Jiaqi Zhou / Investopedia

Understanding Key Performance Indicators (KPIs)

Also referred to as key success indicators (KSIs), KPIs vary between companies and between industries, depending on performance criteria. For example, a software company striving to attain the fastest growth in its industry may consider year-over-year (YOY) revenue growth as its chief performance indicator. Conversely, a retail chain might place more value on same-store sales as the best KPI metric for gauging growth.

At the heart of KPIs lie data collection, storage, cleaning, and synthesizing. The information may be financial or nonfinancial and may relate to any department across the company. The goal of KPIs is to communicate results succinctly to allow management to make more informed strategic decisions.

Key performance indicators (KPIs) gauge a company’s output against a set of targets, objectives, or industry peers.

Categories of KPIs

Most KPIs fall into four different categories, with each category having its own characteristics, time frame, and users.

• Strategic KPIs are usually the most high-level. These types of KPIs may indicate how a company is doing, although it doesn’t provide much information beyond a very high-level snapshot. Executives are most likely to use strategic KPIs, and examples of strategic KPIs include return on investment , profit margin , and total company revenue .
• Operational KPIs are focused on a much tighter time frame. These KPIs measure how a company is doing month over month (or even day over day) by analyzing different processes, segments, or geographical locations. These operational KPIs are often used by managing staff and to analyze questions that are derived from analyzing strategic KPIs. For example, if an executive notices that company-wide revenue has decreased, they may investigate which product lines are struggling.
• Functional KPIs hone in on specific departments or functions within a company. For example, the finance department may keep track of how many new vendors they register within their accounting information system each month, while the marketing department measures how many clicks each email distribution receives. These types of KPIs may be strategic or operational but provide the greatest value to one specific set of users.
• Leading/lagging KPIs describe the nature of the data being analyzed and whether it is signaling something to come or something that has already occurred. Consider two different KPIs: the number of overtime hours worked and the profit margin for a flagship product. The number of overtime hours worked may be a leading KPI should the company begin to notice poorer manufacturing quality. Alternatively, profit margins are a result of operations and are considered a lagging indicator.

Types of KPIs

Financial metrics and kpis.

Key performance indicators tied to the financials typically focus on revenue and profit margins. Net profit, the most tried and true of profit-based measurements, represents the amount of revenue that remains, as profit for a given period, after accounting for all of the company’s expenses, taxes, and interest payments for the same period.

Financial metrics may be drawn from a company’s financial statements. However, internal management may find it more useful to analyze different numbers that are more specific to analyzing the problems or aspects of the company that management wants to analyze. For example, a company may leverage variable costing to recalculate certain account balances for internal analysis only.

Examples of financial KPIs include:

• Liquidity ratios (i.e., current ratios , which divide current assets by current liabilities): These types of KPIs measure how well a company will manage short-term debt obligations based on the short-term assets it has on hand.
• Profitability ratios (i.e., net profit margin): These types of KPIs measure how well a company is performing in generating sales while keeping expenses low.
• Solvency ratios (i.e., total debt-to-total-assets ratio ): These types of KPIs measure the long-term financial health of a company by evaluating how well a company will be able to pay long-term debt.
• Turnover ratios (i.e., inventory turnover): These types of KPIs measure how quickly a company can perform a certain task. For example, inventory turnover measures how quickly a company can convert an item from inventory to a sale. Companies strive to increase turnover to generate faster churn of spending cash to later recover that cash through revenue.

Customer Experience Metrics and KPI

Customer -focused KPIs generally center on per-customer efficiency, customer satisfaction, and customer retention. These metrics are used by customer service teams to better understand the service that customers have been receiving.

Examples of customer-centric metrics include:

• Number of new ticket requests : This KPI counts customer service requests and measures how many new and open issues customers are having.
• Number of resolved tickets : This KPI counts the number of requests that have been successfully taken care of . By comparing the number of requests to the number of resolutions, a company can assess its success rate in getting through customer requests.
• Average resolution time : This KPI is the average amount of time needed to help a customer with an issue. Companies may choose to segment average resolution time across different requests (i.e., technical issue requests vs. new account requests).
• Average response time : This KPI is the average amount of time needed for a customer service agent to first connect with a customer after the customer has submitted a request. Though the initial agent may not have the knowledge or expertise to provide a solution, a company may value decreasing the time that a customer is waiting for any help.
• Top customer service agent : This KPI is a combination of any metric above cross-referenced by customer service representatives. For example, in addition to analyzing company-wide average response time, a company can determine the three fastest and slowest responders.
• Type of request : This KPI is a count of the different types of requests. This KPI can help a company better understand the problems a customer may have (i.e., the company’s website gave incorrect or inaccurate directions) that need to be resolved by the company.
• Customer satisfaction rating : This KPI is a vague measurement, though companies may perform surveys or post-interaction questionnaires to gather additional information on the customer’s experience.

KPIs are usually not externally required; they are simply internal measurements used by management to evaluate a company’s performance.

Process Performance Metrics and KPI

Process metrics aim to measure and monitor operational performance across the organization. These KPIs analyze how tasks are performed and whether there are process, quality, or performance issues. These types of metrics are most useful for companies with repetitive processes, such as manufacturing firms or companies in cyclical industries.

Examples of process performance metrics include:

• Production efficiency : This KPI is often measured as the production time for each stage divided by the total processing time. A company may strive to spend only 2% of its time soliciting raw materials; if it discovers it takes 5% of the total process, then the company may strive for solicitation improvements.
• Total cycle time : This KPI is the total amount of time needed to complete a process from start to finish. This may be converted to average cycle time if management wishes to analyze a process over a period of time.
• Throughput : This KPI is the number of units produced divided by the production time per unit, measuring how fast the manufacturing process is.
• Error rate : This KPI is the total number of errors divided by the total number of units produced. A company striving to reduce waste can better understand the number of items that are failing quality control testing.
• Quality rate : This KPI focuses on the positive items produced instead of the negative. By dividing the successful units completed by the total number of units produced, this percentage informs management of its success rate in meeting quality standards.

Marketing KPIs

Marketing KPIs attempt to gain a better understanding of how effective marketing and promotional campaigns have been. These metrics often measure conversation rates on how often prospective customers perform certain actions in response to a given marketing medium. Examples of marketing KPIs include:

• Website traffic : This KPI tracks the number of people who visit certain pages of a company’s website. Management can use this KPI to better understand whether online traffic is being pushed down potential sales channels and if customers are not being funneled appropriately.
• Social media traffic : This KPI tracks the views, follows, likes, retweets, shares, engagement, and other measurable interactions between customers and the company’s social media profiles.
• Conversion rate on call-to-action content : This KPI centers around focused promotional programs that ask customers to perform certain actions. For example, a specific campaign may encourage customers to act before a certain sale date ends. A company can divide the number of successful engagements by the total number of content distributions to understand what percent of customers answered the call to action.
• Blog articles published per month : This KPI simply counts the number of blog posts a company publishes in a given month.
• Click-through rates : This KPI measures the number of specific clicks that are performed on email distributions. For example, certain programs may track how many customers opened an email distribution, clicked on a link, and followed through with a sale.

A company may desire operational excellence; in this case, it may want to track how its internal technology (IT) department is operating. These KPIs may encourage a better understanding of employee satisfaction or whether the IT department is being adequately staffed. Examples of IT KPIs include:

• Total system downtime : This KPI measures the amount of time that various systems must be taken offline for system updates or repairs. While systems are down, customers may be unable to place orders or employees may be unable to perform certain duties (i.e., when the accounting information system is down).
• Number of tickets/resolutions : This KPI is similar to customer service KPIs. However, these tickets and resolutions relate to internal staff requests such as hardware or software needs, network problems, or other internal technology problems.
• Number of developed features : This KPI measures internal product development by quantifying the number of product changes.
• Count of critical bugs : This KPI counts the number of critical problems within systems or programs. A company will need to have its own internal standards for what constitutes a minor vs. major bug.
• Back-up frequency : This KPI counts how often critical data is duplicated and stored in a safe location. In accordance with record retention requirements, management may set different targets for different bits of information.

The ultimate goal of a company is to generate revenue through sales. Though revenue is often measured through financial KPIs, sales KPIs take a more granular approach by leveraging nonfinancial data to better understand the sales process. Examples of sales KPIs include:

• Customer lifetime value (CLV) : This KPI represents the total amount of money that a customer is expected to spend on your products over the entire business relationship.
• Customer acquisition cost (CAC) : This KPI represents the total sales and marketing cost required to land a new customer. By comparing CAC to CLV, businesses can measure the effectiveness of their customer acquisition efforts.
• Average dollar value for new contracts : This KPI measures the average size of new agreements. A company may have a desired threshold for landing larger or smaller customers.
• Average conversion time : This KPI measures the amount of time from first contacting a prospective client to securing a signed contract to perform business.
• Number of engaged leads : This KPI counts how many potential leads have been contacted or met with. This metric can be further divided into mediums such as visits, emails, phone calls, or other contacts with customers.

Management may tie bonuses to KPIs. For salespeople, their commission rate may depend on whether they meet expected conversion rates or engage in an appropriate number of leads.

Human Resource and Staffing KPIs

Companies may also find it beneficial to analyze KPIs specific to their employees. Ranging from turnover to retention to satisfaction, a company may have a wealth of information already available about its staff. Examples of human resource or staffing KPIs include:

• Absenteeism rate : This KPI is a count of how many dates per year or specific period employees are calling in sick or missing shifts. This KPI may be a leading indicator for disengaged or unhappy employees.
• Number of overtime hours worked : This KPI tracks the number of overtime hours worked to gauge whether employees are potentially facing burnout or if staffing levels are appropriate.
• Employee satisfaction : This KPI often requires a company-wide survey to gauge how employees are feeling about various aspects of the company. To get the best value from this KPI, companies should consider hosting the same survey every year to track changes from one year to the next regarding the exact same questions.
• Employee turnover rate : This KPI measures how often and quickly employees are leaving their positions. Companies can further break down this KPI across departments or teams to determine why some positions may be leaving faster than others.
• Number of applicants : This KPI keeps count of how many applications are submitted to open job positions. This KPI helps assess whether job listings are adequately reaching a wide enough audience to capture interest and lure strong candidates.

Examples of KPIs

Let’s take a look at electric vehicle maker Tesla ( TSLA ) for a few examples of KPIs in real life. These numbers are from its fourth quarter (Q4) 2021 earnings release.

Vehicle Production

During the quarter, Tesla produced a record 305,840 vehicles and delivered 308,650 vehicles. Production is a big deal for the company because it has consistently been criticized for being bad at ramping up. Increased manufacturing scale means more market share and profits for Tesla.

Automotive Gross Margin

For the quarter, Tesla’s automotive gross margin expanded to 30.6%. Gross margin is one of the best measures of profitability for Tesla because it isolates its vehicle production costs. Tesla managed to expand its gross margin in Q4 even as sales of lower-priced models outpaced its higher-margin models.

Free Cash Flow

Tesla’s free cash flow clocked in at $2.8 billion during the quarter. That represented a vast improvement from the $1.9 billion free cash flow in the prior year. Tesla’s level of free cash flow production suggested that the company was reaching a scale of profitability without the help of regulatory credits.

Companies can use KPIs across three broad levels:

First, company-wide KPIs focus on the overall business health and performance. These types of KPIs are useful for informing management of how things are going. However, they are often not granular enough to make decisions. Company-wide KPIs often kick off conversations on why certain departments are performing well or poorly.

At this point, companies often begin digging into department-level KPIs. These are more specific than company-wide KPIs. Department-level KPIs are often more informative as to why specific outcomes are occurring. Many of the examples mentioned above are department-level KPIs, as they focus on a very niche aspect of a company.

If a company chooses to dig even deeper, it may engage with project-level or subdepartment-level KPIs. These KPIs are often specifically requested by management as they may require very specific data sets that may not be readily available. For example, management may want to ask very specific questions to a control group about a potential product rollout .

When preparing KPI reports, start by showing the highest level of data (i.e., company-wide revenue). Next, be prepared to show lower levels of data (i.e., revenue by department, then revenue by department and product).

With companies seemingly collecting more data every day, it can become overwhelming to sort through the information and determine what KPIs are most useful and impactful for decision-making. When beginning the process of pulling together KPI dashboards or reports, consider the following steps:

• Discuss goals and intentions with business partners . KPIs are only as useful as the users make them. Before pulling together any KPI reports, understand what you or your business partner are attempting to achieve.
• Draft SMART KPI requirements . KPIs should have restrictions and be tied to SMART (specific, measurable, attainable, realistic, and time-bound) metrics. Vague, hard-to-ascertain, and unrealistic KPIs serve little to no value. Instead, focus on what information you have that is available and meeting the SMART acronym requirements.
• Be adaptable . As you pull together KPI reports, be prepared for new business problems to appear and for further attention to be given to other areas. As business and customer needs change, KPIs should also adapt with certain numbers, metrics, and goals changing in line with operational evolutions.
• Avoid overwhelming users . It may be tempting to overload report users with as many KPIs as you can fit on a report. At a certain point, KPIs start to become difficult to comprehend, and it may become more difficult to determine which metrics are important to focus on.

Advantages of KPIs

A company may wish to analyze KPIs for several reasons. KPIs help inform management of specific problems; the data-driven approach provides quantifiable information useful in strategic planning and ensuring operational excellence.

KPIs help hold employees accountable. Instead of relying on feelings or emotions, KPIs are statistically supported and cannot discriminate across employees. When used appropriately, KPIs may help encourage employees as they realize their numbers are being closely monitored.

KPIs are also the bridge that connects actual business operations and goals. A company may set targets, but without the ability to track progress toward those goals, there is little to no purpose in those plans. Instead, KPIs allow companies to set objectives, and then monitor progress toward those objectives.

Limitations of KPIs

There are some downsides to consider when working with KPIs. There may be a long time frame required for KPIs to provide meaningful data. For example, a company may need to collect annual data from employees for years to better understand trends in satisfaction rates over long periods of time.

KPIs require constant monitoring and close follow-up to be useful. A KPI report that is prepared but never analyzed serves no purpose. In addition, KPIs that are not continuously monitored for accuracy and reasonableness do not encourage beneficial decision making.

KPIs open up the possibility for managers to “game” KPIs. Instead of focusing on actually improving processes or results, managers may feel incentivized to focus on improving KPIs tied to performance bonuses . In addition, quality may decrease if managers are hyper-focused on productivity KPIs, and employees may feel pushed too hard to meet specific KPI measurements that may simply not be reasonable.

Informs management of how a company is performing in countless ways

Helps hold employees accountable for their actions (or lack of)

Can motivate employees who feel positively challenged to meet targets

Allows a company to set goals and measure progress toward those objectives

Results in potential time commitment to consistently gather data over long periods of time

Requires ongoing monitoring for accuracy and reasonableness in data

May encourage managers to focus on KPIs instead of broader strategies

May discourage employees if KPI targets are unreasonable

What Does KPI Mean?

KPI is an abbreviation for key performance indicator: data that has been collected, analyzed, and summarized to help decision-making. KPIs may be a single calculation or value that summarizes a period of activity, such as “450 sales in October.” By themselves, KPIs do not add any value to a company. However, a company can use this information to make more informed decisions about business operations and strategies.

What Is an example of a KPI?

One of the most basic examples of a KPI is revenue per client (RPC). For example, if you generate $100,000 in revenue annually and have 100 clients, then your RPC is $1,000. A company can use this KPI to track its RPC over time.

What Are 5 of the Most Common KPIs?

KPIs vary from business to business, and some KPIs are more suitable for certain companies compared to others. In general, five of the most commonly used KPIs are:

• Revenue growth
• Revenue per client
• Profit margin
• Client retention rate
• Customer satisfaction

How Do You Measure KPIs?

It depends on the actual KPI being measured. Generally speaking, businesses measure and track KPIs through business analytics software and reporting tools. This includes everything from the collection of data via reliable sources, the safe storage of information, the cleaning of data to standardize its format for analysis, and the actual number crunching. Finally, KPIs are often reported using visualization or reporting software.

What Makes a KPI Good?

A good KPI provides objective and clear information on progress toward an end goal. It tracks and measures factors such as efficiency, quality, timeliness, and performance while providing a way to measure performance over time. The ultimate goal of a KPI is to help management make more informed decisions.

KPIs offer an effective way to measure and track a company’s performance on a variety of different metrics. By understanding exactly what KPIs are and how to implement them properly, managers are better able to optimize the business for long-term success.

Tesla Investor Relations. “ Q4 and FY 2021 Update ,” Page 7.

Tesla Investor Relations. “ Q4 and FY 2021 Update ,” Page 4.

Tesla Investor Relations. “ Q4 and FY 2021 Update ,” Page 5.

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What is a KPI?

KPI stands for Key Performance Indicator, which is a quantifiable metric used to track progress towards a specific business objective .

KPIs help businesses set goals (targets), monitor their achievement (milestones), and identify areas for improvement. By analyzing KPIs, companies can make data-driven decisions to optimize performance and achieve strategic goals.

KPIs provide teams with targets to aim for, milestones to gauge progress, and insights to help guide decision-making throughout an organization. By monitoring KPIs, organizations can identify areas of strength and weakness, make data-driven decisions, and take actions to optimize performance.

Example of a KPI

In simple terms, key performance indicators are a goal that you work towards achieving. For the sake of simplicity, let’s look at this example: you own an apple stand, and to be profitable this month, you have to sell 1,000 apples.

So, you set your KPI: sell 1,000 apples this month. Whether that’s 250 apples per week or you sell all 1,000 in the first three days, your KPI is to reach that 1K mark. When it’s the second week of September, and you’ve sold 550 apples, you can look at your KPI and know that you’re on track to achieve your goal.

In businesses, key performance indicators can either be high-level or drill down to a specific department or individual. High-level KPIs typically look at the performance of your business as a whole, like achieving $1M in annual recurring revenue this fiscal year. When you drill down into processes that are specific to departments, teams, or individuals, those are low-level KPIs. 

What are the benefits of KPIs?

The benefits of implementing KPIs are vast and well-documented. They include enhancing employee engagement, aligning your team with your organization's mission, and improving accountability. 

Aside from performance tracking and control, KPIs can provide your business with the following benefits:

Improves employee engagement

We've already mentioned it, but it's worth noting one more time: KPIs unify employees to work towards a common goal . Employee engagement, a topic that many organizations struggle with, can directly impact your bottom line. But KPIs can help. These indicators, whether individual or organizational, are a helpful mechanism to measure performance, which has a direct tie to employee engagement.

In fact, organizations with an engaged workforce see higher customer engagement, productivity, and 21% higher profitability. On the flip side, disengaged employees cite the same issues: poor communication about strategy between management and individual contributors. KPIs help solve this problem.

Connects your purpose and your culture

Your KPIs should be connected to your organization's mission. “Making money” isn't a mission, and it's not something that employees will connect with on a deeper level, either. Your purpose should encourage employees to show up to work with a renewed sense of excitement every day. There should be a direct link between your mission and your KPIs so that employees feel like their work is purposeful in achieving both. 

Remove any ambiguity: ensure your KPIs work towards your end goal and employees clearly understand how and why they're working towards that.

Makes everyone accountable for performance

Traditionally, individual performance management frameworks are about setting objectives, measuring performance, and managing related activities. So why not incorporate KPIs into performance management, too?

Performance KPIs will help employees measure their impact and how their daily activities, arguably the foundation of their role, play into the success of larger organizational goals. KPIs set everyone off in the same direction, making everyone a happy contributor to your success.

What are the different types of KPI?

There are various types of KPI that you can use to measure your organization’s performance. Let’s discuss the ones you should be tracking.

Sales KPIs are used to track the performance of your sales. They can include metrics such as revenue, customer acquisition cost, average purchase value, retention/churn rates, and more.

Marketing KPIs

As implied, Marketing KPIs focus more on assessing the effectiveness of your marketing campaigns. They can include metrics such as website visitors, conversion rate, social media engagement, and more. Insights gathered from Marketing KPIs are usually paired with those gathered from sales.

Financial KPIs

Financial KPIs focus on financial metrics such as revenue growth, profitability, return on investment (ROI), and cash flow. They provide insights into the financial well-being and stability of your organization.

Operational KPIs

Operational KPIs measure the efficiency of your operations and operational processes. They can include metrics related to production output, quality control, and inventory management.

Customer KPIs

Customer-centric KPIs focus on measuring your success in meeting your customer’s needs, expectations, and preferences. Some examples of customer performance indicators include customer retention rate, average customer lifetime value, and customer satisfaction index.

What makes a good KPI?

To drive meaningful insights and support data-driven decision-making, it is important to identify and define the right KPIs. So, what makes a KPI good? Below are some tips.

• Business-aligned: KPIs should be aligned with your overall business strategy and outcomes. For example, let's say your business has a goal to increase  monthly recurring revenue (MRR)  by 20% by the end of the fiscal year (a high-level KPI). If you’re on the sales team, your KPI might be to increase inbound leads by 50% by the end of Q3 (a low-level KPI). Your performance indicator contributes to the overall business goal because new leads = revenue potential. 
• Actionable : KPIs should be actionable. Once you’ve set your KPI, you need to outline the steps you’ll take to reach it and the metrics you’ll measure along the way. What good is a KPI if you have no way to meet it? If your goal is to increase inbound leads, you should have a plan in place to do that—like moving more prospects from the  MQL to SQL stage . Actionable steps will set you up for success in reaching your KPIs. It’s also worth noting that KPIs shouldn’t spur additional questions, they should do just the opposite: inspire action.
• Realistic : KPIs should be realistic. Good advice is to start small. Big, lofty KPIs—while they might look good on paper—aren’t doing you or your team any favors if they’re unrealistic from the get-go.
• Measurable : KPIs should be measurable. When you set KPIs, ask yourself: What are you trying to achieve? What is the desired end result? What’s the timeline? Remember to add: How am I going to measure my KPIs?  Oftentimes, a BI or analytics tool is a great way to track your progress against your KPIs. This way, you can build a metric (like  leads ) and easily and quickly see your progress in data visualization (and share it with others on your team or across your organization, too! We love a data-driven team!).

How to set a good KPI

Now that we have the definition of a KPI, let’s take a look at the basics of setting KPIs. While you can take inspiration from industry-recognized KPIs, the ones you set should be unique to your business and your goals. 

Let’s take a look at a  KPI example  of a bad one versus a good one. 

Here’s an example of a  bad KPI : Make a lot of money this year.

Why is this a bad KPI? To start, it’s incredibly vague. Is “a lot of money” $10K or $1M? There are no definitive actions that you can tie to your KPI if you don’t have a specific amount you’re working towards, there’s no ‘goal post’ (i.e. a defined amount) to know you’ve hit your target, and there’s no metric to attribute to it so you can track your progress. 

On the flip side, here’s an example of a  good KPI : Increase monthly recurring revenue by $25K this month.

Why is this a good performance indicator? It’s specific in more ways than one: it outlines the dollar amount  and  the timeframe in which you hope to achieve it. With a detailed KPI like this, you have an associated metric (MRR) that you can track against your progress, and you can hone in on what specific action(s) you’re going to take to achieve your KPI, like going after expansion MRR for existing customers. 

It's important to remember that KPIs are a form of communication. When you write a KPI, keep in mind the basic rules of communication: be sure it is succinct, clear, and relevant.

How to define your KPIs

It can be easy to confuse KPIs with business metrics.  Key  performance indicators, should relate to a specific business outcome with a performance measure. 

Let’s look at an example of how to set a KPI. Consider how your business objective is to increase your   monthly recurring revenue , so your team sets a sales growth KPI. 

Here's how you might define the KPI for that:

What is the best way to measure KPI?

You might be asking yourself: “How do I measure my company KPIs?” Well, the best way to do so is by using the SMART framework.

What is the SMART framework?

SMART refers to the five requirements your KPIs need to be good. It’s an acronym for  S pecific,  M easure,  A ttainable,  R elevant, and  T imeframe.

Let's break this down into specific questions you need to answer:

• Is your objective  specific ? The KPI should have a clear and well-defined focus area. It should directly address a specific aspect of your operations, like sales, customer satisfaction, or website traffic.
• Can you  measure  progress toward your goal? The KPI should be quantifiable using objective data, like percentages.
• Is the goal realistically  attainable ? The KPI has to be a parameter that you know you can realistically strive for in a given timeframe. Don’t shoot for impossible numbers.
• How  relevant  is the goal to your organization? The KPI should directly align with your business objectives and reflect an area that is critical to your success.
• What is the  timeframe  for achieving this goal? Is it for the month, quarter, or year? Setting a timeframe for your KPI can help you do comparisons between periods, which allows you to track your performance and growth.

If you want to expand the SMART framework, you can make it SMARTER by adding  evaluate  and  re-evaluate  to your measurement steps. KPIs shouldn't be one-and-done—constantly evaluate them to ensure they are attainable and on track.

What is the difference between a key performance indicator and a metric?

While the terms “KPI” and “business metric” are often used interchangeably, they are distinct concepts. A business metric is a quantifiable measure used to track and assess the status of a specific business process. For example, website traffic is a common business metric. 

On the other hand, KPIs are a type of performance measurement that helps you understand how your organization, department, or individual is performing against their strategic goals. 

In short, every KPI is a business metric, but not every business metric is a KPI.

The  difference between a KPI and a metric  is nuanced. It is worth noting, though, that despite their subtle differences, you often need one to have the other. Here’s a side-by-side comparison of a KPI and a metric:

To develop a strategy for writing KPIs, start with the basics: understand what your organizational objectives are, how you plan to achieve them, and who can act on the information. As you iterate and develop, you will gain a better understanding of which business processes can be on a KPI dashboard and who you should share that dashboard with.

What are KPI reports?

Now that you know what a key performance indicator is, you might have also stumbled upon the term “KPI report.” KPI reports, or KPI reporting, is a summary of all key KPIs you have for a project, campaign, or general operations. It’s usually created using interactive dashboards and/or reporting software that users can edit and share. 

Ultimately, KPI reports serve as a strategic tracking method, providing a comprehensive view of essential business activities and its performance in each aspect.

What are the benefits of using KPI software?

At some point, you might be asking yourself, “Why do I need software when I can use a spreadsheet?” And while it’s true,  spreadsheets have their limitations . They offer limited data visualizations (pie charts, bar charts, etc.), and there is a lot of time and manual effort required to get your report set up. 

Spreadsheets require regular, manual maintenance to keep your data up to date, too. 

Meanwhile, dashboard and reporting tools automate your data retrieval right from your data source so, right away, there is minimal manual effort. These tools are ideal for creating specialized dashboards, such as  executive dashboards  for high-level performance monitoring,  marketing dashboards  for tracking campaign results,  social media dashboards  for analyzing engagement, and  sales dashboards  for monitoring sales performance. 

In fact, no matter how big or small your organization is, there are a ton of benefits KPI software can give you. Below are the ones you absolutely need to know about.

Has a library of visualization options

Dashboard and reporting tools often have data visualization customization and advanced capabilities, offering a large selection of visualization options. Klipfolio lets you create real-time data visualizations of your KPIs. When you’re tracking your KPIs, you’re likely pulling in data from different data sources, like HubSpot or Google Analytics. 

In an analytics tool, you can  bring all of that data together  in just a few clicks, turn it into  stunning data visualizations , and  put them on a dashboard . From there, you can segment your data to look at channel types or countries, add dimensions, combine metrics, and share customizable and insightful reports with your team.

Centralizes your data 

KPI software provides a structured and organized repository where KPIs can be defined, tracked, and updated. This eliminates the need for manual tracking (like spreadsheets), ensuring that your data will always be accurate, consistent, and accessible.

For example, your sales team can use KPI software to store and track key sales performance metrics such as revenue and conversion rates. All relevant data points and calculations are stored and refreshed in one place, allowing your business to monitor and analyze performance trends over time.

Supports real-time monitoring

KPI software enables real-time performance monitoring. It retrieves data from various sources, updates metric values automatically, and presents them in shared dashboards for easy access. This provides instant visibility into performance trends, allowing for timely decision-making and response to changing circumstances.

KPI software can also generate automated alerts and notifications based on predefined rules or thresholds. This way, teams are promptly informed when their KPIs deviate from expected targets, enabling them to take immediate action and address any pressing concerns. 

Easy to scale

KPI software offers scalability, allowing organizations to accommodate growing data volumes and expanding performance measurement needs. It’s designed to handle large volumes of data and accommodate growing companies. 

For example, you may start off by just tracking basic sales and revenue. But over time, you may find that metrics such as customer retention rates, average order value, and inventory turnover can give you a more accurate reading into the performance of your company. As you collect and analyze more data, your KPI software can scale accordingly. 

Integrates with existing sources

KPI software can leverage data from multiple sources. In retail, for example, you have data sources such as point of sales data, loyalty card data, and market data. KPI software integrates with all these systems/data to generate comprehensive insights and maximize the value of your KPIs.

How to create a KPI Dashboard

Creating a KPI dashboard involves a systematic approach to ensure its effectiveness in monitoring and analyzing critical metrics.

• Define the objective of your dashboard : Is it to share insights with people who find raw data challenging to read? To convince management to take action?
• Identify who the dashboard will be for : Is it stakeholders? Marketing? Knowing what exactly your dashboard will be used for helps determine what KPIs you’ll be using, how you’ll be presenting them when it will be monitored, and more.
• Select the right KPIs : Focus on a concise set of metrics that provide a clear and meaningful picture of your organization's progress. You don’t need all of them to make a comprehensive report.
• Choose the proper visuals : What visuals will help you effectively convey the information you have with a glance? Some examples include charts, graphs, gauges, and tables.
• Design your layout : Organize the KPIs in a logical manner, considering factors such as hierarchy, grouping, and visual flow. Keep the design clean, uncluttered, and easy to navigate.
• Gather feedback : Before sharing your KPI dashboard with the rest of your team, test its usability and functionality with a small group of users. Make the necessary adjustments based on user insights to improve the overall user experience.

Knowing what exactly your dashboard will be used for helps determine what KPIs you will be using, how you will be presenting them, when it will be monitored, and more. Remember to  regularly maintain and update your dashboard  as well to ensure real-time or near-real-time monitoring.

What are the best KPIs to use?

We've said it a lot throughout this article: your key performance indicators should directly tie into your organizational goals and mission. This alignment ensures that everyone in the organization is working towards the same objectives.

For example, if your strategic goal is to improve customer service, a potential KPI might be to "Reduce customer complaint resolution time by 30% over the next 6 months." If you fail to meet this requirement, you need to know why it happened and take corrective action as soon as possible.

However, we also understand that defining the best KPIs to start with can be a challenge. To start your journey into performance tracking, we’ll list down some of the basic KPIs you should be tracking across different business functions, such as sales, finance, and marketing.

Get started  creating your KPI dashboard  with the following metrics:

Best Executive KPIs

Net Profit Margin

Net Profit Margin shows net profit as a percentage of total revenue. To calculate the Net Profit Margin, divide your net profit (after deducting all expenses) by the total revenue. 

Debt to Equity Ratio

The Debt to Equity Ratio measures how your organization is funding its growth and how effectively you are using shareholder investments. For example, if a company has a debt of $1 million and a shareholders' equity of $500,000, the Debt to Equity Ratio would be 2. This means that the company has twice as much debt as equity.

Lifetime Value to Cost of Acquisition Ratio

This KPI tells you if the theoretical lifetime revenue you get from a customer is higher or lower than the sales and marketing costs needed to acquire that customer. It is calculated by dividing the Lifetime Value (LTV) of a customer by the Cost of Acquisition (CAC).

CAC Payback Period

CAC Payback Period is the time it takes for a company to earn back its customer acquisition costs. A shorter payback period indicates a quicker return on investment.

Best Marketing KPIs

• Customer Acquisition Cost

Customer Acquisition Cost (CAC) is the cost a business incurs to acquire a new customer. It is calculated by dividing the costs associated with acquiring customers, such as marketing, by the number of new customers acquired within a specific timeframe.

• Lead Conversion Rate

The Lead Conversion Rate is the percentage of visitors who come to your website and are captured as leads. The lead conversion rate provides insights into the effectiveness of your sales and marketing efforts in converting leads into paying customers.

Marketing Qualified Leads

A Marketing Qualified Lead (MQL) is a universal metric used by marketing teams to measure the quality of leads they generate and pass to sales. Marketing teams often have different set targets for MQLs.

Return on Marketing Investment

The Return On Marketing Investment (ROMI) metric measures how much revenue a marketing campaign is generating compared to the cost of running that campaign. It’s computed by first subtracting the amount spent on marketing from the revenue generated by marketing efforts. Then, divide this result by the marketing investment and multiply by 100 (to get a percentage).

Best Sales KPIs

Lead to Win Rate

Lead To Win Rate is the percentage of Leads who entered the sales funnel and are now "Closed Won" customers. The process is more lengthy, but it is commonly computed by dividing the number of leads converted into wins by the total number of leads generated.

A Lead is an individual who has shown an interest in your product or service. They don’t have to be people who buy your offerings.

MRR Growth Rate

Monthly Recurring Revenue (MRR) Growth Rate is the velocity at which MRR is being added to the business, expressed as a percentage. MRR is determined by comparing the Net MRR of the current period with the Net MRR of the previous period.

Average Selling Price

Average Selling Price (ASP) is the average price a given product is sold for. To calculate the ASP, simply divide the total revenue earned from selling the product by the total number of units sold. For example, let's say your company earns a total revenue of $100,000 from selling 1,000 units of a product. By dividing the total revenue by the total number of units sold, the ASP would be $100.

Best Finance KPIs

Gross Margin

Gross Margin is a profitability ratio that measures Gross Profit as a percentage of total revenue. It is calculated by subtracting the cost of producing goods or services from the revenue generated by selling them.

Net Burn, often referred to as Burn Rate, is the amount a company is losing per month as they burn through its cash reserves. There are two common ways to calculate net Burn. The first involves subtracting the Gross Margin from the Operating Expenses. The second method compares the starting and ending cash balances over a specific period. Both methods provide valuable insights into your cash flow and financial health. This way, you'll know if your business is spending more cash than it is generating and if it can sustain its current spending levels.

Net profit is the value that remains after all expenses are subtracted from the company’s total income. It’s computed by subtracting all expenses from your gross income.

Revenue is all income you’ve earned through all channels—be it sales or subscriptions. This KPI lets you know how much your business is earning.

Frequently Asked Questions

What are the five main kpis.

If we’re talking about the  commonly  used KPIs, they have to be: 

• Profit Margin/Sales and/or Annual Sales Growth
• Client/Customer Retention Rate
• Customer Satisfaction

However, remember that different organizations have different objectives. Choose the indicators that you think will best track your company’s growth. KPIs serve as quantifiable metrics that reflect the critical areas of your business and provide a clear view of its progress and success. By tracking your performance indicators, you can lay the groundwork for effective management and gain valuable insights into your organization's progress towards its goals.

What does KPI stand for in sales?

Key performance indicators (KPIs) are measurable and quantifiable metrics used to evaluate and assess the performance of your company or organization’s activities. It’s commonly used in sales and marketing to track revenue generation, customer acquisition, conversion rates, and more.

By tracking and analyzing sales KPIs, you can closely monitor your progress towards your targets, pinpoint areas for enhancement, and make informed, data-driven decisions to optimize sales performance. 

What is the difference between a dashboard and a KPI?

Sometimes we see the words “dashboard” and “KPI” used interchangeably—which is simply untrue. A dashboard is a visual representation of data that provides a consolidated view of various metrics and other relevant information in a single interface. It offers a comprehensive overview of an organization's performance across different areas and enables businesses to monitor trends, patterns, and insights at a glance. 

While a dashboard may include KPIs,  it often encompasses a broader range of metrics and data points —not just key performance indicators!   Dashboards typically present data through charts, graphs, tables, and other visual elements, allowing users to quickly assess performance and make data-driven decisions. Dashboards are usually set up using a KPI software or reporting tool.

OKR Success Stories and Case Studies

OKRs are seen as the solution for all kinds of inefficiencies that creep up over time in organizations, and this behavior can set them up for failure. The other side of the coin isn’t rosy either – organizations that are afraid of the effects of OKRs also fail to make the most of the framework.

High expectations can be tempered by studying the prerequisites of OKRs, but that does little to assuage the fears some organizations might have. Going through OKR case studies of organizations that have successfully used the framework can highlight the best practices, and drive the fear away. Their questions about prerequisites and implementing Objectives and Key Results can be answered by steps taken by organizations who have succeeded in using OKRs.

OKRs are becoming one of the most important ways for goal setting and performance management, as they are flexible enough to work for small and large businesses alike.

OKR case studies: 5 businesses who successfully use OKRs

The 5 case studies presented below demonstrate how the performance of leading businesses was impacted positively by using OKRs.

Microsoft has used OKRs in the recent past to align strategic priorities between and within different teams. The emphasis of the OKR practice at Microsoft is to localize objectives and key results (OKRs), identify opportunities quickly and address gaps in communication and resource requirements.

The organization uses OKRs to measure what really matters in the current cycle. Managers chart, calculate, and share progress on key results and metrics that define success.

The team made full use of Teams – Microsoft’s collaboration and chat tool – to bring strategic priorities into regular conversations. This ensured important and urgent tasks stayed in the line of sight of all stakeholders, and the efforts every day reflected the same. The adoption did not reduce even during the work from home phase, where distributed teams could access the objectives and expected key results, and compare them with actual results. This led to a near-real-time update of KPIs, with the simplicity of Teams chat.

Teams at Spotify use a time-boxed agenda to stay on track – where topics are outlined at the beginning of the session, along with activities that will be covered. The duration of every task and the desired outcomes are glanced over too. ‍

There are a few ground rules that help the currently distributed teams to function efficiently – like outlining the rules and expectations beforehand. They also have a dedicated Slack channel to post questions that are then addressed during the discussions – which are held with the cameras on to add that human touch. ‍

If that explains the smooth running of the meetings, the preparations that happen beforehand provide the basics. Team members review the OKR structure with the team, and OKRs start at the very top with the company vision. This vision defines key focus areas resulting in the setting of yearly objectives. These in turn allow teams to define their own team’s quarterly goals, which are converted into team OKRs.

The Team OKR setting sessions Start with icebreaker events, and then key results are prioritized via brainstorming. Everything goes here, and ideas are evaluated by the team in a democratic fashion. The ones that seem promising are stickied, and the collective KRs are brought down to just three to five items. The teams reconvene into a larger group and present their outputs to everyone – and the larger group then finalizes their quarterly KRs.

Google has been a proponent of OKRs since 1999 when it was a company of 40. One thing that has stayed in its phenomenal growth to 60,000 people is their reliance and belief in OKRs. The leaders set ambitious objectives, and key results are graded on a scale of 0.0-1.0 at the end of every quarter.

One of the highlights of Goole OKRs is that they are transparent – that means any employee in the organization can see what their colleagues are focusing on. OKRs between 0.6 to 0.7 is considered successful at Google: for good reasons too, because OKRs are designed to push the team to be a little better in the current cycle than the previous one. They also don’t consider low OKRs as a cause of concern, as they believe low scores indicate there is room for improvement. These low score OKRs are used as learning opportunities for the next OKR cycle (in Google’s case, next quarter).

LinkedIn CEO Jeff Weiner believes that the business is responsible for providing clear directions to the leaders of the organization, as making informed decisions helps in staying on track of the vision and mission . The CEO believes that good leaders can lift their surroundings (in this case, team members) through different modes of activity like coaching, strategy planning, defining objectives, and measuring the right results. The belief in the organization is to complete OKRs in a limited time period, and hence 3 to 5 objectives in a quarter are enough.

OKR progress is tracked at LinkedIn through regular meetings with employees, which can take the entire day.

These meetings keep the CEO and the rest of the leadership team updated on how the employees are contributing towards the business objectives of the organization. Employees share their views on the success and roadblocks so that they get recognized for the good work done and request help in areas they are slower than average.

One of the leading telecom organizations in the world, Huawei, moved to OKRs from KPIs to take their business practices a notch above. The leadership team at Huawei was unhappy with the KPI system that was in use, as it could only use goal setting as the process starting point and performance evaluation as the end – but didn’t provide any avenues for the employees to clearly understand the need or importance of the goals set. The process was mechanical and did not add much to the upward curve the organization was aiming for.

In 2019, the leadership group decided to adopt OKRs. OKRs were used to set goals for the team members, who could clearly identify and understand the importance of goals set for them and how they contributed to the overall growth of the organization. The process boosted the performance of their business, as aligning the goals of employees led to an increased collaboration which resulted in the completion of business goals in a collective manner.

Sears holding company started using OKRs in 2013 for all of its 20,000+ salaried employees – but the expected changes did not happen even after a year of using the framework. This led to some necessary changes being made, where teams of outbound call agents at different locations were allotted different objectives based on the data accumulated. The focus was diverted to add-on sales that were measured using hourly calls and hourly sales data. This refresh brought the desired changes, as the sales figures increased by 8.5%. Average sales figures jumped significantly and increased to $15.67 per hour – a marked rise from the previous $14.44.

Learnings from the case studies

Organizations can start by using the OKR formula to calculate the expected effectiveness – which can be stated in simple terms as below:

[objective] needs to be attended to, and the progress of the process can be measured by [key result 1], [Key result 2] …

Here, the ambitious, concrete goal that the organization wants to achieve is the objective, and the key results are how the accomplishment of the objective is measured. Limiting key results to 3 to 5 items is important, as employees can get bogged down if the number is more than that per objective. This enables the objective to be focussed on the minds of the employees, and they can see how striving to achieve each metric helps them and their organization.

Aligning day-to-day work As the Spotify and Google case studies point out, having a well-defined OKR can result in the better articulation of the outcome, that can be easily followed and adhered to by employees. As soon as employees can see how their everyday work impacts the overall objective of the organization, their productivity increases. Instead of seeing work as a list of tasks to be completed, they treat them as stepping stones towards achieving their and the organization’s objectives. Regular meetings also help in highlighting issues or new avenues that might be useful in the long run.

Unlocking the potential of the workforce.

OKRs provide a robust platform for employees to collaborate and work towards a common objective instead of just finishing tasks on their plate. This focus brought forward by OKRs is essential to keep the remote workforce engaged, as it simplifies collaboration between teams and allows them to stay focused on executing the strategy penned down by the leadership teams. Employees can then plan their business-as-usual activities better, and identify areas of innovation and learning that can help them and their organization stay ahead of the curve. The potential of the workforce increases rapidly because of the clear line of action presented by well-planned OKRs, and results in:

• Speed at which changes can be carried out. Due to increased collaboration between team members and different teams, the time taken to execute important steps are shortened. Individual contributions add up to more than the sum of their parts, and the organization as a whole can move towards being nimble in the face of unexpected changes, without affecting business productivity.
• Priorities can be set based on immediate needs while keeping an eye on the changes that may occur in the future. With constant coaching and one-on-one sessions, both the manager and the team members can grow faster into the roles and contribute more effectively to the overall objective.
• Execution becomes more streamlined as there are other key results that need to be achieved. The continuous feedback cycle which OKRs thrive on, help in identifying and adopting potential changes that might disrupt the market in the near future.
• Alignment of goals and ambitions of employees with that of the organization creates a win-win situation where employees upgrade their skills promptly, which allows the organization to stay ahead of potential challenges from competitors (or market conditions).

More OKR Success Stories

There are plenty of OKR success stories that can be used to understand the effectiveness of the process, but having the basics right is more important for organizations thinking about putting the framework into practice. Without the presence of a strong vision and buy-ins from the leadership team, however, OKRs have little chance of causing any significant improvement to the day-to-day activities of the organization. The clarity and accountability that can be gained from OKRs depend on connecting the objectives of the company and team members into results that can be easily quantified.

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How to identify kpis in 4 steps, refresher: what are kpis.

KPI stands for Key Performance Indicator. Key Performance Indicators are connected to your goals and objectives —they are quantifiable, outcome-based statements that outline and measure your organization’s most important outputs.

This article explains how to develop and identify KPIs for your strategic plan.

KPIs tell you what you want to achieve and by when you want to achieve it. A good plan will include 5-7 KPIs to manage and track the plan’s progress.

Why Do I Need to Identify KPIs?

KPIs are the heartbeat of your performance management process. They are the metrics that tell you whether you are making progress in accordance with your strategy. This means you’re going to work with KPIs a lot, which is why you need to make sure they work well for you. This article will give you the basic guidelines you need to not only know how to identify KPIs, but also how to set up tracking for your KPIs so that they work for you successfully.

Get the Free Guide for Creating KPIs (with 100 Examples!)

How to identify kpis & set up tracking, step 1: structure your kpis based on measures that contribute directly to your organization’s annual objectives..

In thinking about how to identify KPIs that will work for your organization, there are five primary components to consider:

• Your first step is to look at your organization’s objective and identify a measure, or quantifiable marker, of where you are now . You’ll want to make these measures as expressive as possible. For example, “number of new customers” is fine, but identifying the number of new customers within a given timeframe or the number of new customers for a particular product or strategy is better.
• Next, you’ll need to identify a target, a numerical representation of where you want to be with this objective. This should be directly comparable to the measure indicating where you are now. It should also include a time period by which you want to achieve the goal.
• It’s common to have many different places where you are tracking data, so each KPI needs a clearly identified data source . You need to be able to easily, quickly, and objectively identify where and how this information is being tracked.
• Then, you’ll need to determine the frequency, or how often you will be reporting on this KPI . Ideally, this will be at least monthly. However, different KPIs will have different timelines that are appropriate.
• Finally, like any good goal, each KPI needs to have an owner . You need to know who is in charge of tracking and strategizing with this KPI.

As you determine the indicators you want to track, keep in mind that you can measure raw numbers (number of new customers, for example), progress (like the percent completion of a goal), or change (for instance, percent increase in sales). Tracking progress or change do a better job of telling a story with numbers than just, rigid counting, or tracking raw numbers.

You’ll also want to consider that there are leading and lagging measures .

• Lagging indicators , such as a percent increase in sales, measure outcome—what has already happened. Therefore, they “lag” behind your performance.
• Leading indicators help show whether you are on track to hit your target. They focus on the future and give you clues about what you can expect. For example, a KPI that includes your cost of operations can be a leading indicator that predicts decreases in profits if certain costs increase. Similarly, a KPI that measures the success of your website will likely indicate upcoming increases in sales.

Pro Tip: We recommend a combination of leading and lagging indicators. Try to split them evenly if you can.

Step 2: Evaluate the quality of your new KPIs.

Again, it is important that the KPIs you choose to track and measure your progress are ones that work well for your organization. Here are some questions to consider that will help you determine how to identify KPIs that will best reflect your progress against your strategy:

• Is this KPI easily quantifiable? If you can’t measure this variable numerically, it will be very difficult to objectively identify progress toward a goal.
• Is this KPI within our control? Can we drive change in this KPI? Your KPIs will only be as useful as you can use them. If they measure external factors rather than ones that you can control, then they won’t tell you what you need to do to achieve your targets.
• Does this KPI connect directly to our objective as well as overall strategy? Your KPIs are meant to track not just your outputs, but how you are measuring up to the goals you have set for your organization. You want to choose KPIs that are directly relevant to those objectives.
• Is this KPI simply defined and understandable? Remember that you are going to be working with this KPI at least monthly (in some cases, weekly or even daily). It needs to be something you can conceptualize and communicate, not only for yourself, but for everyone in the organization who will be working with this KPI.
• Can this KPI be measured with accuracy and timeliness? Sometimes the trickiest part of identifying a KPI is setting up processes to collect accurate and consistent data for it. KPIs can only be useful if they are accurate, and as we’ve discussed, they need to be reported regularly (at least monthly). This needs to be part of the consideration as you are identifying your KPIs and how you will measure them.
• Do our KPIs give a broad range of perspectives on our organization’s success? For example, do you have measures to reflect your progress not only among customers, but also in your organization’s finances, internal processes, and learning and growth?
• Will this KPI remain relevant? For consistency and stability in tracking your progress, try to choose KPIs that will serve your organization for the foreseeable future.

Step 3: Assign ownership for each KPI to specific individuals in the organization.

You need to know where the ball stops. You also want individuals within your organization to feel invested in its success, and ownership of a KPI encourages this kind of positively motivated accountability.

Who in your organization is best equipped to track, interpret, and report on this KPI? Assign responsibility and make sure that expectations are clear, and individuals have the resources to accurately and consistently track these KPIs, as well as a way to communicate them to leadership, other staff members, or other stakeholders as necessary.

Step 4: Monitor and report on the KPIs regularly and transparently.

Identifying and setting up tracking for each of your KPIs is important initial work to developing your strategy. Moving forward, you will need to determine not only—as mentioned above—how often you will track each one, but also how you will report on them. You might take time in your weekly staff meetings to report on KPIs, for example.

You will need to determine the best way to monitor and report on these KPIs so your entire organization knows where you are and where you want to be in terms of your organizational strategy. You want everyone to see how their work contributes to organizational objectives.

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Machine learning for KPIs prediction: a case study of the overall equipment effectiveness within the automotive industry

• Methodologies and Application
• Published: 05 October 2020
• Volume 25 , pages 2891–2909, ( 2021 )

Cite this article

• Choumicha EL Mazgualdi 1 ,
• Tawfik Masrour   ORCID: orcid.org/0000-0002-7761-6300 1 ,
• Ibtissam El Hassani 1 &
• Abdelmoula Khdoudi 1  

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Key performance indicators are tools for management, decision support and forecasting; they reflect the strategy and vision of the company in terms of objectives and allow to always staying in step with the expectations of the stakeholders. Accurate forecasting of the indicators allows decisions to be reoriented to ensure performance optimization while reducing both cost and effort. This paper aims to apply different machine learning methods, namely support vector regression, optimized support vector regression (using genetic algorithm), random forest, extreme gradient boosting and deep learning to predict the overall equipment effectiveness as a case study. We will make use of several configurations of the listed models in order to provide a wide field of comparison. The data used to train our models were provided by an automotive cable production industry. The result shows that the configuration in which we used cross-validation technique, and we performed a duly splitting of data, provides predictor models with the better performances.

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Acknowledgements

The authors would like to thank the anonymous reviewers for their helpful comments and suggestions which improved the quality of this paper. The authors would particularly like to thank the managing editor, Prof. Raffaele Cerulli, for his insightful suggestions during the revision process of this paper.

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EL Mazgualdi, C., Masrour, T., El Hassani, I. et al. Machine learning for KPIs prediction: a case study of the overall equipment effectiveness within the automotive industry. Soft Comput 25 , 2891–2909 (2021). https://doi.org/10.1007/s00500-020-05348-y

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The change in approach is not limited to regulatory compliance and corporate reporting; it also affects consumer communications. While Jope believed that brands sold more when “guided by a purpose”, Schumacher argues that “we don’t want to force fit [purpose] on brands unnecessarily”.

His more nuanced view aligns with evidence that consumers’ responses to the sustainability and purpose communication attached to brand names depend on two key variables: the type of industry in which the brand operates; and the specific aspect of sustainability being communicated.

In terms of the sustainability message, research in the Journal of Business Ethics found consumers can be less interested when product functionality is key. Furthermore, a UK survey in 2022 found that about 15 per cent of consumers believed brands should support social causes, but nearly 60 per cent said they would rather see brand owners pay taxes and treat people fairly.

Among investors, too, “anti-purpose” and “anti-ESG” sentiment is growing. One (unnamed) leading bond fund manager even suggested to the FT that “ESG will be dead in five years”.

Media reports on the adverse impact of ESG controversies on investment are certainly now more frequent. For example, while Jope was still at the helm, the FT reported criticism of Unilever by influential fund manager Terry Smith for displaying sustainability credentials at the expense of managing the business.

Yet some executives feel under pressure to take a stand on environmental and social issues — in many cases believing they are morally obliged to do so or through a desire to improve their own reputations. This pressure may lead to a conflict with shareholders if sustainability becomes a promotional tool for managers, or for their personal social responsibility agenda, rather than creating business value .

Such opportunistic behaviours may lead to a perception that corporate sustainability policies are pursued only because of public image concerns.

Alison Taylor, at NYU Stern School of Business, recently described Unilever’s old materiality map — a visual representation of how companies assess which social and environmental factors matter most to them — to Sustainability magazine. She depicted it as an example of “baggy, vague, overambitious goals and self-aggrandising commitments that make little sense and falsely suggest a mayonnaise and soap company can solve intractable societal problems”.

In contrast, the “realism” approach of Schumacher is being promulgated as both more honest and more feasible. Former investment banker Alex Edmans, at London Business School, has coined the term “rational sustainability” to describe an approach that integrates financial principles into decision-making, and avoids using sustainability primarily for enhancing social image and reputation.

Such “rational sustainability” encompasses any business activity that creates long-term value — including product innovation, productivity enhancements, or corporate culture initiatives, regardless of whether they fall under the traditional ESG framework.

Similarly, Schumacher’s approach aims for fewer targets with greater impact, all while keeping financial objectives in sight.

Complex objectives, such as having a positive impact on the world, may be best achieved indirectly, as expounded by economist John Kay in his book, Obliquity . Schumacher’s “realistic sustainability” approach means focusing on long-term value creation, placing customers and investors to the fore. Saving the planet begins with meaningfully helping a company’s consumers and investors. Without their support, broader sustainability efforts risk failure.

Questions for discussion

Read: Unilever has ‘lost the plot’ by fixating on sustainability, says Terry Smith

Companies take step back from making climate target promises

The real impact of the ESG backlash

Unilever’s new chief says corporate purpose can be ‘unwelcome distraction ’

Unilever says new laxer environmental targets aim for ‘realism’

How should business executives incorporate ESG criteria in their commercial, investor, internal, and external communications? How can they strike a balance between purpose and profits?

How does purpose affect business and brand value? Under what circumstances or conditions can the impact of purpose be positive, neutral, or negative?

Are brands vehicles by which to drive social or environmental change? Is this the primary role of brands in the 21st century or do profits and clients’ needs come first?

Which categories or sectors might benefit most from strongly articulating and communicating a corporate purpose? Are there instances in which it might backfire?

In your opinion, is it necessary for brands to take a stance on social issues? Why or why not, and when?

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Are you curious about the FT’s environmental sustainability commitments? Find out more about our science-based targets here

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International Edition

• Convocation 2024
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Mock Trial at Emmanuel College Simulates 1999 NATO Bombing Case

Between April 10th and 22nd, 2024, Ambassador Vesko Garčević, Professor of the Practice of International Relations at Boston University’s Pardee School of Global Studies, led a three-session mock trial simulation in cooperation with the Institute of Eastern Mediterranean Studies (IEMS) at Emmanuel College.

Garčević has served as the IEMS Ambassador in Residence since 2018. The IEMS, formally established that same year, has a mission to promote and support the study of the Eastern Mediterranean and neighboring regions. It builds upon Emmanuel College’s liberal arts mission while leveraging the academic and innovative resources of Boston. The Institute sponsors academic programs, research, and educational opportunities for students, scholars, policymakers and practitioners locally in Boston as well as throughout the Eastern Mediterranean region.

By simulating a high-profile case before the International Court of Justice, the mock trial provided students with valuable insight into the Court’s procedures and processes for adjudicating disputes between nations. The workshop allowed participants to explore the complex legal and political issues surrounding the 1999 NATO bombing campaign from multiple perspectives.

Ambassador Vesko Garčević dealt with issues pertinent to European security and NATO for almost 14 years during his diplomatic career. In 2004, he was posted in Vienna to serve as Ambassador to Organization for Security and Cooperation in Europe. He was Montenegro’s Ambassador to NATO from 2010 until 2014 and served as Montenegro’s National Coordinator for NATO from 2015 until he joined the faculty at the Pardee School. Learn more about Ambassador Garčević  on his faculty profile .

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Sand in Newport Beach was replenished in 2023. (Photo/iStock)

Beach erosion will make Southern California coastal living five times more expensive by 2050, USC study predicts

The region’s sandy coastlines are vanishing at an alarming rate. It’s a warning sign for coastal communities worldwide, USC research suggests.

Rising sea levels and urban development are accelerating coastal erosion at an alarming rate in Southern California with significant ripple effects on the region’s economy, a USC study reveals.

The study, published in Communications Earth & Environment , predicts that Southern California’s coastal living costs will surge fivefold by 2050 as a direct result of beach erosion. This erosion will require more frequent and costly beach nourishment projects to maintain the state’s treasured shorelines, consequently driving up the cost of living along the coast.

“Our study presents compelling evidence of the rapid deterioration of Southern California’s coastal landscapes,” said Essam Heggy , a geoscientist in the Ming Hsieh Department of Electrical and Computer Engineering/Electrophysics at the USC Viterbi School of Engineering and the study’s corresponding author.

“The challenges facing Southern California mirror a growing threat shared by coastal communities worldwide. The environmental and economic implications of coastal erosion reach far beyond California’s shores and demand interdisciplinary, global solutions,” he said.

Coastal erosion: Cost of living sure to surge as sandy beaches disappear

To predict future changes along California’s sandy coastlines, the researchers focused on the Gulf of Santa Catalina, which stretches over 150 miles from the Palos Verdes Peninsula in Los Angeles County to the northern tip of Baja California in Mexico.

They used a combination of historical and recent satellite images as well as advanced algorithms to analyze coastline movement and predict future erosion based on different trends and environmental factors.

The study predicts a tripling of erosion rates by 2050, increasing from an average of 1.45 meters per year to 3.18 meters by 2100. Consequently, the annual sand requirement for beach nourishment could triple by 2050, with costs rising fivefold due to the global increase in sand prices. This will exacerbate economic and logistical pressures on coastal communities.

Beach nourishment is adding sand to an eroded beach to rebuild it and create a wider barrier against waves and storms.

“Our investigation suggests that coastal problems start inland due to the rapid growth of cities along the coast, which compromise inland sediment replenishment of sandy beaches,” said Heggy, whose research focuses on understanding water evolution in Earth’s arid environments.

“As our beaches shrink, the cost of maintaining them will rise. Finding innovative solutions is key to securing a sustainable future for our shores and local economies,” he said.

Coastal erosion in California: A case study for a global problem

Coastal cities in Southern California and those in North Africa bordering the Mediterranean Sea face a common challenge: a semi-arid climate year-round coupled with the growing threats of rising sea levels and eroding shorelines.

A significant portion of Earth’s landmass, roughly 41%, falls under arid or semi-arid classifications, and these areas support over a third of the global population.

To understand this global challenge, the researchers focused on two specific locations: Corona del Mar in Orange County, Calif. — an example of the typical Southern California coastline — and Hammamet North Beach in Tunisia. Both are densely populated and share similar climates, prone to increasing droughts, flash floods and unpredictable rainfall patterns. These characteristics mirror the challenges faced by countless coastal communities worldwide.

The findings showed that the average rate of shoreline retreat in these areas varies. In Southern California, beaches are receding between 0.75 and 1.24 meters per year. In Hammamet North Beach, the retreat rate ranges from 0.21 to about 4.49 meters annually.

“While beach nourishment can temporarily combat erosion, however, it presents significant challenges for developing countries,” said Oula Amrouni, a sedimentologist at the National Institute of Marine Sciences and Technologies at the University of Carthage, Tunis, Tunisia, and one of the study’s co-authors. “The high cost of acquiring the right sand, with the specific grain size, quality and composition, and the technical complexity of extracting and laying it are major hurdles. Additionally, worsening erosion in previously stable areas compels more frequent nourishment projects, straining already limited budgets and leading to unplanned expenditures for many communities.”

About the study: Co-authors of the study include Oula Amrouni and Abderraouf Hzami of the National Institute of Marine Sciences and Technologies at the University of Carthage, Tunis, Tunisia.

This research is supported by the Arid Climates and Water Research Center at USC under contract from the NASA Jet Propulsion Laboratory (AWD#00630), the USC Zumberge Research and Innovation Fund, and the USC Sea Grant.

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Beach erosion will make Southern California coastal living five times more expensive by 2050, study predicts

by Nina Raffio, University of Southern California

Rising sea levels and urban development are accelerating coastal erosion at an alarming rate in Southern California with significant ripple effects on the region's economy, a USC study reveals.

The study , published in Communications Earth & Environment , predicts that Southern California's coastal living costs will surge fivefold by 2050 as a direct result of beach erosion. This erosion will require more frequent and costly beach nourishment projects to maintain the state's treasured shorelines, consequently driving up the cost of living along the coast.

"Our study presents compelling evidence of the rapid deterioration of Southern California's coastal landscapes," said Essam Heggy, a geoscientist in the Ming Hsieh Department of Electrical and Computer Engineering/Electrophysics at the USC Viterbi School of Engineering and the study's corresponding author.

"The challenges facing Southern California mirror a growing threat shared by coastal communities worldwide. The environmental and economic implications of coastal erosion reach far beyond California's shores and demand interdisciplinary, global solutions," he said.

Coastal erosion: Cost of living sure to surge as sandy beaches disappear

To predict future changes along California's sandy coastlines, the researchers focused on the Gulf of Santa Catalina, which stretches over 150 miles from the Palos Verdes Peninsula in Los Angeles County to the northern tip of Baja California in Mexico.

They used a combination of historical and recent satellite images as well as advanced algorithms to analyze coastline movement and predict future erosion based on different trends and environmental factors.

The study predicts a tripling of erosion rates by 2050, increasing from an average of 1.45 meters per year to 3.18 meters by 2100. Consequently, the annual sand requirement for beach nourishment could triple by 2050, with costs rising fivefold due to the global increase in sand prices. This will exacerbate economic and logistical pressures on coastal communities.

Beach nourishment is adding sand to an eroded beach to rebuild it and create a wider barrier against waves and storms.

"Our investigation suggests that coastal problems start inland due to the rapid growth of cities along the coast, which compromise inland sediment replenishment of sandy beaches ," said Heggy, whose research focuses on understanding water evolution in Earth's arid environments.

"As our beaches shrink, the cost of maintaining them will rise. Finding innovative solutions is key to securing a sustainable future for our shores and local economies," he said.

Coastal erosion in California: A case study for a global problem

Coastal cities in Southern California and those in North Africa bordering the Mediterranean Sea face a common challenge: a semi-arid climate year-round coupled with the growing threats of rising sea levels and eroding shorelines.

A significant portion of Earth's landmass, roughly 41%, falls under arid or semi-arid classifications, and these areas support over a third of the global population.

To understand this global challenge, the researchers focused on two specific locations: Corona del Mar in Orange County, Calif.—an example of the typical Southern California coastline—and Hammamet North Beach in Tunisia. Both are densely populated and share similar climates, prone to increasing droughts, flash floods and unpredictable rainfall patterns. These characteristics mirror the challenges faced by countless coastal communities worldwide.

The findings showed that the average rate of shoreline retreat in these areas varies. In Southern California, beaches are receding between 0.75 and 1.24 meters per year. In Hammamet North Beach, the retreat rate ranges from 0.21 to about 4.49 meters annually.

"While beach nourishment can temporarily combat erosion, however, it presents significant challenges for developing countries," said Oula Amrouni, a sedimentologist at the National Institute of Marine Sciences and Technologies at the University of Carthage, Tunis, Tunisia, and one of the study's co-authors.

"The high cost of acquiring the right sand, with the specific grain size, quality and composition, and the technical complexity of extracting and laying it are major hurdles. Additionally, worsening erosion in previously stable areas compels more frequent nourishment projects, straining already limited budgets and leading to unplanned expenditures for many communities."

Journal information: Communications Earth & Environment

Provided by University of Southern California

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• Open access
• Published: 24 May 2024

Integration of case-based learning and three-dimensional printing for tetralogy of fallot instruction in clinical medical undergraduates: a randomized controlled trial

• Jian Zhao 1   na1 ,
• Xin Gong 1   na1 ,
• Jian Ding 1 ,
• Kepin Xiong 2 ,
• Kangle Zhuang 3 ,
• Rui Huang 1 ,
• Shu Li 4 &
• Huachun Miao 1  

BMC Medical Education volume  24 , Article number:  571 ( 2024 ) Cite this article

65 Accesses

Metrics details

Case-based learning (CBL) methods have gained prominence in medical education, proving especially effective for preclinical training in undergraduate medical education. Tetralogy of Fallot (TOF) is a congenital heart disease characterized by four malformations, presenting a challenge in medical education due to the complexity of its anatomical pathology. Three-dimensional printing (3DP), generating physical replicas from data, offers a valuable tool for illustrating intricate anatomical structures and spatial relationships in the classroom. This study explores the integration of 3DP with CBL teaching for clinical medical undergraduates.

Sixty senior clinical medical undergraduates were randomly assigned to the CBL group and the CBL-3DP group. Computed tomography imaging data from a typical TOF case were exported, processed, and utilized to create four TOF models with a color 3D printer. The CBL group employed CBL teaching methods, while the CBL-3DP group combined CBL with 3D-printed models. Post-class exams and questionnaires assessed the teaching effectiveness of both groups.

The CBL-3DP group exhibited improved performance in post-class examinations, particularly in pathological anatomy and TOF imaging data analysis ( P  < 0.05). Questionnaire responses from the CBL-3DP group indicated enhanced satisfaction with teaching mode, promotion of diagnostic skills, bolstering of self-assurance in managing TOF cases, and cultivation of critical thinking and clinical reasoning abilities ( P  < 0.05). These findings underscore the potential of 3D printed models to augment the effectiveness of CBL, aiding students in mastering instructional content and bolstering their interest and self-confidence in learning.

The fusion of CBL with 3D printing models is feasible and effective in TOF instruction to clinical medical undergraduates, and worthy of popularization and application in medical education, especially for courses involving intricate anatomical components.

Peer Review reports

Tetralogy of Fallot (TOF) is the most common cyanotic congenital heart disease(CHD) [ 1 ]. Characterized by four structural anomalies: ventricular septal defect (VSD), pulmonary stenosis (PS), right ventricular hypertrophy (RVH), and overriding aorta (OA), TOF is a focal point and challenge in medical education. Understanding anatomical spatial structures is pivotal for learning and mastering TOF [ 2 ]. Given the constraints of course duration, medical school educators aim to provide students with a comprehensive and intuitive understanding of the disease within a limited timeframe [ 3 ].

The case-based learning (CBL) teaching model incorporates a case-based instructional approach that emphasizes typical clinical cases as a guide in student-centered and teacher-facilitated group discussions [ 4 ]. The CBL instructional methods have garnered widespread attention in medical education as they are particularly appropriate for preclinical training in undergraduate medical education [ 5 , 6 ]. The collection of case data, including medical records and examination results, is essential for case construction [ 7 ]. The anatomical and hemodynamic consequences of TOF can be determined using ultrasonography, computed tomography (CT), and magnetic resonance imaging techniques. However, understanding the anatomical structures from imaging data is a slow and challenging psychological reconstruction process for undergraduate medical students [ 8 ]. Three-dimensional (3D) visualization is valuable for depicting anatomical structures [ 9 ]. 3D printing (3DP), which creates physical replicas based on data, facilitates the demonstration of complex anatomical structures and spatial relationships in the classroom [ 10 ].

During the classroom session, 3D-printed models offer a convenient means for hands-on demonstration and communication, similar to facing a patient, enhancing the efficiency and specificity of intra-team communication and discussion [ 11 ]. In this study, we printed TOF models based on case imaging data, integrated them into CBL teaching, and assessed the effectiveness of classroom instruction.

Research participants

The study employed a prospective, randomized controlled design which received approval from the institutional ethics committee. Senior undergraduate students majoring in clinical medicine at Wannan Medical College were recruited for participation based on predefined inclusion criteria. The researchers implemented recruitment according to the recruitment criteria by contacting the class leaders of the target classes they had previously taught. Notably, these students were in their third year of medical education, with anticipation of progressing to clinical courses in the fourth year, encompassing Internal Medicine, Surgery, Obstetrics, Gynecology, and Pediatrics. Inclusion criteria for participants encompassed the following: (1) proficient communication and comprehension abilities, (2) consistent attendance without absenteeism or truancy, (3) absence of failing grades in prior examinations, and (4) capability to conscientiously fulfill assigned learning tasks. Exclusion criteria were (1) absence from lectures, (2) failure to complete pre-and post-tests, and (3) inadequate completion of questionnaires. For their participation in the study, Students were provided access to the e-book “Localized Anatomy,” authored by the investigators, as an incentive for their participation. Voluntary and anonymous participation was emphasized, with participants retaining the right to withdraw from the study at any time without providing a reason.

The study was conducted between May 1st, 2023, and June 30, 2023, from recruitment to completion of data collection. Drawing upon insights gained from a previous analogous investigation which yielded an effect size of 0.95 [ 10 ]. Sample size was computed, guided by a statistical consultant, with the aim of 0.85 power value, predicated on an effect size of 0.8 and a margin of error set at 0.05. A minimum of 30 participants per group was calculated using G*Power software (latest ver. 3.1.9.7; Heinrich-Heine-Universität Düsseldorf, Düsseldorf, Germany), resulting in the recruitment of a total of 60 undergraduate students. Each participant was assigned an identification number, with codes placed in boxes. Codes drawn from the boxes determined allocation to either the CBL group or the CBL-3DP group. Subsequently, participants were randomly assigned to either the CBL group, receiving instruction utilizing the CBL methodology, or the CBL-3DP group, which received instruction integrating both CBL and 3D Printed models.

Printing of TOF models

Figure  1 A shows the printing flowchart of the TOF models. A typical TOF case was collected from the Yijishan Hospital of Wannan Medical College. The CT angiography imaging data of the case was exported. Mimics Research 20.0 software (Mimics Innovation Suite version 20, Materialize, Belgium) was used for data processing. The cardiovascular module of the CT-Heart tool was employed to adjust the threshold range, independently obtain the cardiac chambers and vessels, post-process the chambers and vessels to generate a hollow blood pool, and merge it with the myocardial volume to construct a complete heart model. The file was imported into Magics 24.0 software (version 24.0; Materialize, Belgium) for correction using the Shell tool page. After repairs, the model entered the smoothing page, where tools such as triangular surface simplification, local smoothing, refinement and smoothing, subdivision of components, and mesh painting were utilized to achieve varying degrees of smoothness. Finally, optimized data were obtained and exported as stereolithography (STL) files. An experienced cardiothoracic surgeon validated the anatomical accuracy of the digital model.

The STL files were imported into a 3D printer (J401Pro; Sailner 3D Technology, China) for model printing. This printer can produce full-color medical models using different materials. The models were fabricated using two distinct materials: rigid and flexible. Both materials are suitable for the observational discussion of the teaching objectives outlined in our study. From the perspective of observing pathological changes in the TOF, there is no significant difference between the two materials.

Experimental flow chart of this study. A TOF model printing flow chart. B The instructional framework

Teaching implementation

Figure  1 B illustrates the instructional framework employed in this study. One week preceding the class session, all the students were tasked with a 30-minute self-study session, focusing on the theoretical content related to TOF as outlined in the Pediatrics and Surgery textbooks, along with a review of pertinent academic literature. Both groups received co-supervision from two basic medicine lecturers boasting over a decade of teaching experience, alongside a senior cardiothoracic surgeon. Teaching conditions remained consistent across groups, encompassing uniform assessment criteria and adherence to predefined teaching time frames, all conducted in a Project-Based Learning (PBL) classroom at Wannan Medical College. Additionally, a pre-course examination was administered to gauge students’ preparedness for self-study.

In adherence to the curriculum guidelines, the teaching objectives aimed to empower students to master TOF’s clinical manifestations, diagnostic modalities, and differential diagnoses, while acquainting them with treatment principles and surgical methodologies. Additionally, the objectives sought to cultivate students’ clinical reasoning abilities and problem-solving skills. the duration of instruction for the TOF theory session was standardized to 25 min. The didactic content was integrated with the TOF case study to construct a coherent pedagogical structure.

During the instructional session, both groups underwent teaching utilizing the CBL methodology. Clinical manifestations and case details of TOF cases were presented to stimulate students’ interest and curiosity. Subsequently, the theory of TOF, including its etiology, pathogenesis, pathologic anatomy, clinical manifestations, diagnostic methods, and therapeutic interventions, was briefly elucidated. Emphasis was then placed on the case, wherein selected typical TOF cases were explained, guiding students in analysis and discussion. Students were organized into four teams under the instructors’ supervision, fostering cooperative learning and communication, thereby deepening their understanding of the disease through continuous inquiry and exploration (Fig.  2 L). In the routinely equipped PBL classroom with standard heart models (Fig.  2 J, K), all students had prior exposure to human anatomy and were familiar with these models. Both groups were provided with four standard heart models for reference, while the CBL-3DP group received additional four 3D-printed models depicting TOF anomalies, enriching their learning experience (Fig.  2 D, G). After the lesson, summarization, and feedback sessions were conducted to consolidate group discussions’ outcomes, evaluate teaching effectiveness, and assess learning outcomes.

Heart models utilized in instructional sessions. A External perspective of 3D digital models. B, C Cross-sectional views following trans-septal sagittal dissection of the 3D digital model (PS: Pulmonary Stenosis; OA: Overriding Aorta; VSD: Ventricular Septal Defect; RVH: Right Ventricular Hypertrophy). D External depiction of rigid 3D printed model. E, F Sagittal sections of the rigid 3D printed model. G External portrayal of flexible 3D printed model. H, I Sagittal sections of the flexible 3D printed model. J, K The normal heart model employed in the instruction of the CBL group. L Ongoing classroom session

Teaching effectiveness assessment

Following the instructional session, participants from the two groups underwent a theoretical examination to assess their comprehension of the taught material. This assessment covered domains such as pathological anatomy, clinical manifestations, imaging data interpretation, diagnosis, and treatment relevant to TOF. Additionally, structured questionnaires were administered to evaluate the efficacy of the pedagogical approach employed. The questionnaire consisted of six questions designed to gauge participants’ understanding of the teaching content, enhancement of diagnostic skills, cultivation of critical thinking and clinical reasoning abilities, bolstering of confidence in managing TOF cases, satisfaction with the teaching mode, and satisfaction with the CBL methodology.

The questionnaire employed a 5-point Likert scale to gauge responses, with 5 indicating “strongly satisfied/agree,” 4 for “satisfied/agree,” 3 denoting “neutral,” 2 reflecting “dissatisfied/disagree,” and 1 indicating “strongly dissatisfied/disagree.” It comprised six questions, with the initial two probing participants’ knowledge acquisition, questions 3 and 4 exploring satisfaction regarding enhanced competence, and the final two assessing satisfaction with teaching methods and modes. Additionally, participants were encouraged to provide suggestions at the end of the questionnaire. To ensure the questionnaire’s validity, five esteemed lecturers in basic medical sciences with more than 10 years of experience verified its content and assessed its Content Validity Ratio and Content Validity Index to ensure alignment with the study’s objectives.

Statistical analysis

Statistical analyses were conducted utilizing GraphPad Prism 9.0 software. Aggregate score data for both groups were presented as mean ± standard deviation (x ± s). The gender comparisons were analyzed with the chi-square (χ2) test, while the other variables were compared using the Mann-Whitney U test. The threshold for determining statistical significance was set at P  < 0.05.

Three-dimensional printing models

After configuring the structural colors of each component (Fig.  2 A, B, C), we printed four color TOF models using both rigid and flexible materials, resulting in four life-sized TOF models. Two color TOF models were created using rigid materials (Fig.  2 D, E, F). These models, exhibiting resistance to deformation, and with a firm texture, smooth and glossy surface, and good transparency, allowing visibility of the internal structures, were deemed conducive to teaching and observation. We also fabricated two color TOF models using flexible materials (Fig.  2 G, H, I), characterized by soft texture, opacity, and deformability, allowing for easy manipulation and cutting. It has potential utility beyond observational purposes. It can serve as a valuable tool for simulating surgical interventions and may be employed to create tomographic anatomical specimens. In this study, both material models were suitable for observation in the classroom. The participants were able to discern the four pathological changes characteristic of TOF from surface examination or cross-sectional analysis.

Baseline characteristics of the students

In total, 60 students were included in this study. The CBL group comprised 30 students (14 males and 16 females), with an average age of (21.20 ± 0.76) years. The CBL-3DP group consisted of 30 students (17 males and 13 females) with an average age of 20.96 years. All the students completed the study procedures. There were no significant differences in age, sex ratio, or pre-class exam scores between the two groups ( P  > 0.05), indicating that the baseline scores between the two groups were comparable (Table  1 ).

Theoretical examination results

All students completed the research procedures as planned. The post-class theoretical examination encompassed assessment of pathological anatomy, clinical presentations, imaging data interpretation, diagnosis, and treatment pertinent to TOF. Notably, no statistically significant disparities were observed in the scores on clinical manifestations, diagnosis and treatment components between the cohorts, as delineated in Table  2 . Conversely, discernible distinctions were evident whereby the CBL-3DP group outperformed the CBL group notably in pathological anatomy, imaging data interpretation, and overall aggregate scores ( P  < 0.05).

Results of the questionnaires

All the 60 participants submitted the questionnaire. Comparing the CBL and CBL-3DP groups, the scores from the CBL-3DP group showed significant improvements in many areas. This included satisfaction with the teaching mode, promotion of diagnostic skills, bolstering of self-assurance in managing TOF cases, and cultivation of critical thinking and clinical reasoning abilities (Fig.  3 B, C, D, E). All of which improved significantly ( P  < 0.05 for the first aspects and P  < 0.01 for the rest). However, the two groups were not comparable ( P  > 0.05) in terms of understanding of the teaching content and Satisfaction with the CBL methodology (Fig.  3 A, F).

Upon completion of the questionnaires, participants were invited to proffer recommendations. Notably, in the CBL group, seven students expressed challenges in comprehending TOF and indicated a need for additional time for consolidation to enhance understanding. Conversely, within the CBL-3DP group, twelve students advocated for the augmentation of model repertoire and the expansion of disease-related data collection to bolster pedagogical efficacy across other didactic domains.

Five-point Likert scores of students’ attitudes in CBL ( n  = 30) and CBL-3DP ( n  = 30) groups. A Understanding of teaching content. B Promotion of diagnostic skills. C Cultivation of critical thinking and clinical reasoning abilities. D Bolstering of self-assurance in managing TOF cases. E Satisfaction with the teaching mode. F Satisfaction with the CBL methodology. ns No significant difference, * p  < 0.05, ** p  < 0.01, *** p  < 0.001

TOF presents a significant challenge in clinical practice, necessitating a comprehensive understanding for effective diagnosis and treatment [ 12 ]. Traditional teaching methods in medical schools have relied on conventional resources such as textbooks, 2D illustrations, cadaver dissections, and radiographic materials to impart knowledge about complex conditions like TOF [ 13 ]. However, the limitations of these methods in fully engaging students and bridging the gap between theoretical knowledge and practical application have prompted a need for innovative instructional approaches.

CBL has emerged as a valuable tool in medical education, offering students opportunities to engage with authentic clinical cases through group discussions and inquiry-based learning [ 14 ]. By actively involving students in problem-solving and decision-making processes, CBL facilitates the application of theoretical knowledge to real-world scenarios, thus better-preparing students for future clinical practice [ 15 ]. Our investigation revealed that both groups of students exhibited comparable levels of satisfaction with the CBL methodology, devoid of discernible disparities.

CHD presents a formidable challenge due to the intricate nature of anatomical anomalies, the diverse spectrum of conditions, and individual variations [ 16 ]. Utilizing 3D-printed physical models, derived from patient imaging data, can significantly enhance comprehension of complex anatomical structures [ 17 ]. These models have proven invaluable in guiding surgical planning, providing training for junior or inexperienced pediatric residents, and educating healthcare professionals and parents of patients [ 18 ]. Studies indicate that as much as 50% of pediatric surgical decisions can be influenced by the insights gained from 3D printed models [ 19 ]. By providing tangible, anatomically accurate models, 3D printing offers a unique opportunity for people to visualize complex structures and enhance their understanding of anatomical intricacies. Our study utilized full-color, to-scale 3D printed models to illustrate the structural abnormalities associated with TOF, thereby enriching classroom sessions and facilitating a deeper comprehension of the condition.

Comparative analysis between the CBL-3DP group and the CBL group revealed significant improvements in post-test performance, particularly in pathological anatomy and imaging data interpretation. Additionally, questionnaire responses indicated higher levels of satisfaction and confidence among students in the CBL-3DP group, highlighting the positive impact of incorporating 3D printed models into the learning environment, improving the effectiveness of CBL classroom instruction. Despite the merits, our study has limitations. Primarily, participants were exclusively drawn from the same grade level within a single college, possibly engendering bias owing to shared learning backgrounds. Future research could further strengthen these findings by expanding the sample size and including long-term follow-up to assess the retention of knowledge and skills. Additionally, the influence of the 3D models depicting a normal heart on the learning process and its potential to introduce bias into the results warrants consideration, highlighting a need for scrutiny in subsequent studies.

As medical science continues to advance, the need for effective teaching methods becomes increasingly paramount. Our study underscores the potential of combining active learning approaches like CBL with innovative technologies such as 3D printing to enhance teaching effectiveness, improve knowledge acquisition, and foster students’ confidence and enthusiasm in pursuing clinical careers. Moving forward, further research and integration of such methodologies are essential for meeting the evolving demands of medical education, especially in areas involving complex anatomical understanding.

Conclusions

Integrating 3D-printed models with the CBL method is feasible and effective in TOF instruction. The demonstrated success of this method warrants broad implementation in medical education, particularly for complex anatomical topics.

Data availability

All data supporting the conclusions of this research are available upon reasonable request from the corresponding author.

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Acknowledgements

We extend our sincere appreciation to the instructors and students whose invaluable participated in this study.

This paper received support from the Education Department of Anhui Province, China (Grant Numbers 2022jyxm1693, 2022jyxm1694, 2022xskc103, 2018jyxm1280).

Author information

Jian Zhao and Xin Gong are joint first authors.

Authors and Affiliations

Department of Human Anatomy, Wannan Medical College, No.22 West Wenchang Road, Wuhu, 241002, China

Jian Zhao, Xin Gong, Jian Ding, Rui Huang & Huachun Miao

Department of Cardio-Thoracic Surgery, Yijishan Hospital of Wannan Medical College, Wuhu, China

Kepin Xiong

Zhuhai Sailner 3D Technology Co., Ltd., Zhuhai, China

Kangle Zhuang

School of Basic Medical Sciences, Wannan Medical College, Wuhu, China

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Contributions

Jian Zhao and Huachun Miao designed the research. Jian Zhao, Xin Gong, Jian Ding, Kepin Xiong designed the tests and questionnaires. Kangle Zhuang processed the imaging data and printed the models. Xing Gong and Kepin Xiong implemented the teaching. Jian Zhao and Rui Huang collected the data and performed the statistical analysis. Jian Zhao and Huachun Miao prepared the manuscript. Shu Li and Huachun Miao revised the manuscript. Shu Li provided the Funding acquisition. All authors reviewed and approved the final manuscript.

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Correspondence to Shu Li or Huachun Miao .

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This investigation received ethical approval from the Ethical Committee of School of Basic Medical Sciences, Wannan Medical College (ECBMSWMC2022-1-12). All methodologies adhered strictly to established protocols and guidelines. Written informed consent was obtained from the study participants to take part in the study.

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Zhao, J., Gong, X., Ding, J. et al. Integration of case-based learning and three-dimensional printing for tetralogy of fallot instruction in clinical medical undergraduates: a randomized controlled trial. BMC Med Educ 24 , 571 (2024). https://doi.org/10.1186/s12909-024-05583-z

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Received : 03 March 2024

Accepted : 21 May 2024

Published : 24 May 2024

DOI : https://doi.org/10.1186/s12909-024-05583-z

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