Why use the KPI Library?
Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.
This vast range of KPIs across various industries and functions offers the flexibility to tailor Performance Management and Measurement to the unique aspects of your organization, ensuring more precise monitoring and management.
Each KPI in the KPI Library includes 12 attributes:
- KPI definition
- Potential business insights [?]
- Measurement approach/process [?]
- Standard formula [?]
- Trend analysis [?]
- Diagnostic questions [?]
- Actionable tips [?]
- Visualization suggestions [?]
- Risk warnings [?]
- Tools & technologies [?]
- Integration points [?]
- Change impact [?]
Need KPIs for a function not listed? Email us at support@flevy.com.
We have 39 KPIs on ISO 55001 in our database. KPIs in ISO 55001 implementation are vital for tracking the performance and value of assets. They measure asset utilization, maintenance effectiveness, and lifecycle costs.
These metrics help in optimizing asset management strategies, ensuring the reliability and efficiency of assets, and reducing total cost of ownership. KPIs in this context support informed investment and divestment decisions. They are essential for organizations to maximize the return on their assets and ensure long-term asset performance.
| KPI | Definition | Business Insights [?] | Measurement Approach | Standard Formula |
|---|---|---|---|---|
| Asset Condition Index | A quantitative measure of the condition or health of an asset, often used to determine maintenance priorities and investment requirements. | Provides insights into the remaining useful life and maintenance needs of assets, informing capital planning and risk management. | Considers the current state of physical assets by assessing factors such as age, wear, and performance. | (Sum of Condition Ratings for Each Asset / Total Number of Assessed Assets) * 100 |
| Asset Criticality Ranking | A ranking of assets based on their criticality to the organization's operations, which helps prioritize asset management efforts and resources. | Helps prioritize maintenance and investment decisions based on the criticality of assets to the business operations. | Takes into account the importance of an asset to the core operations, including potential impact on safety, production, and costs. | Assigned Criticality Scores for Each Asset / Total Number of Assets |
| Asset Data Governance Quality | The quality of governance over asset-related data, ensuring data integrity, accuracy, and security. | Reveals the trustworthiness of asset data, which is crucial for informed decision-making and compliance. | Measures the accuracy, completeness, and reliability of data pertaining to assets. | Total Number of Data Quality Issues Identified / Total Asset Data Records Reviewed |
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| Asset Disposal Efficiency | The efficiency with which assets are disposed of, including the time taken and the financial return achieved from asset sales or recycling. | Indicates how effectively the organization handles the end-of-life phase of asset management, maximizing returns and minimizing costs. | Evaluates the process of retiring assets, including the time taken and costs recovered. | (Total Revenue from Asset Disposal - Total Cost of Asset Disposal) / Total Number of Disposed Assets |
| Asset Downtime Ratio | The proportion of time that assets are not operational due to maintenance, breakdowns, or other inefficiencies, affecting overall productivity. | Illuminates the reliability of assets and the efficiency of maintenance practices, aiming for minimal disruption to operations. | Measures the proportion of time that assets are not operational due to unplanned outages or maintenance. | Total Unplanned Downtime / (Total Planned Operating Time + Total Unplanned Downtime) |
| Asset Health and Safety Incident Rate | The rate of health and safety incidents related to asset management operations, important for assessing the risk profile of asset activities. | Assesses the effectiveness of asset management in providing a safe working environment and mitigating occupational hazards. | Tracks incidents related to health and safety that are caused or influenced by asset conditions. | (Number of Health and Safety Incidents Involving Assets / Total Number of Asset Operating Hours) * 1,000,000 |
In selecting the most appropriate ISO 55001 KPIs from our KPI Library for your organizational situation, keep in mind the following guiding principles:
- Relevance: Choose KPIs that are closely linked to your Corporate Finance objectives and ISO 55001-level goals. If a KPI doesn't give you insight into your business objectives, it might not be relevant.
- Actionability: The best KPIs are those that provide data that you can act upon. If you can't change your strategy based on the KPI, it might not be practical.
- Clarity: Ensure that each KPI is clear and understandable to all stakeholders. If people can't interpret the KPI easily, it won't be effective.
- Timeliness: Select KPIs that provide timely data so that you can make decisions based on the most current information available.
- Benchmarking: Choose KPIs that allow you to compare your ISO 55001 performance against industry standards or competitors.
- Data Quality: The KPIs should be based on reliable and accurate data. If the data quality is poor, the KPIs will be misleading.
- Balance: It's important to have a balanced set of KPIs that cover different aspects of the organization—e.g. financial, customer, process, learning, and growth perspectives.
- Review Cycle: Select KPIs that can be reviewed and revised regularly. As your organization and the external environment change, so too should your KPIs.
It is also important to remember that the only constant is change—strategies evolve, markets experience disruptions, and organizational environments also change over time. Thus, in an ever-evolving business landscape, what was relevant yesterday may not be today, and this principle applies directly to KPIs. We should follow these guiding principles to ensure our KPIs are maintained properly:
- Scheduled Reviews: Establish a regular schedule (e.g. quarterly or biannually) for reviewing your ISO 55001 KPIs. These reviews should be ingrained as a standard part of the business cycle, ensuring that KPIs are continually aligned with current business objectives and market conditions.
- Inclusion of Cross-Functional Teams: Involve representatives from outside of ISO 55001 in the review process. This ensures that the KPIs are examined from multiple perspectives, encompassing the full scope of the business and its environment. Diverse input can highlight unforeseen impacts or opportunities that might be overlooked by a single department.
- Analysis of Historical Data Trends: During reviews, analyze historical data trends to determine the accuracy and relevance of each KPI. This analysis can reveal whether KPIs are consistently providing valuable insights and driving the intended actions, or if they have become outdated or less impactful.
- Consideration of External Changes: Factor in external changes such as market shifts, economic fluctuations, technological advancements, and competitive landscape changes. KPIs must be dynamic enough to reflect these external factors, which can significantly influence business operations and strategy.
- Alignment with Strategic Shifts: As organizational strategies evolve, evaluate the impact on Corporate Finance and ISO 55001. Consider whether the ISO 55001 KPIs need to be adjusted to remain aligned with new directions. This may involve adding new ISO 55001 KPIs, phasing out ones that are no longer relevant, or modifying existing ones to better reflect the current strategic focus.
- Feedback Mechanisms: Implement a feedback mechanism where employees can report challenges and observations related to KPIs. Frontline insights are crucial as they can provide real-world feedback on the practicality and impact of KPIs.
- Technology and Tools for Real-Time Analysis: Utilize advanced analytics tools and business intelligence software that can provide real-time data and predictive analytics. This technology aids in quicker identification of trends and potential areas for KPI adjustment.
- Documentation and Communication: Ensure that any changes to the ISO 55001 KPIs are well-documented and communicated across the organization. This maintains clarity and ensures that all team members are working towards the same objectives with a clear understanding of what needs to be measured and why.
By systematically reviewing and adjusting our ISO 55001 KPIs, we can ensure that your organization's decision-making is always supported by the most relevant and actionable data, keeping the organization agile and aligned with its evolving strategic objectives.
Navigate your organization to excellence with 15,468 KPIs at your fingertips.
CORE BENEFITS
- 39 KPIs under ISO 55001
- 15,468 total KPIs (and growing)
- 328 total KPI groups
- 75 industry-specific KPI groups
- 12 attributes per KPI
- Full access (no viewing limits or restrictions)
FlevyPro and Stream subscribers also receive access to the KPI Library. You can login to Flevy here.
