Partner KPIs - ERP VAR

Partner KPIs

Objective Provide a set of KPIs to help partners monitor and proactively manage short term business performance and long term business
health and growth. Enable partners to benchmark themselves against top performers.

Approach Develop a top-management Balanced Scorecard (SC) supported by Operational Dashboards (DB) for individual business functions
i.e. a mix of strategic, tactical and operational management tools.

Metrics The metrics have been defined and developed by Microsoft and a group of 3rd party management consultants with MBS channel
experience and expertise.

Targets The proposed "Top-Quartile Performance" is based on data from the Partner Economic Survey and other research and represents
actual reported performance achieved by top partners. Some targets will differ by market and by partner due to market maturity, bill rates,
industry/segment focus etc. and partners should adjust targets accordingly.

Usage Partners can use the scorecard and dashboards by manually entering their data into this document or, alternatively, use the metric
definitions and proposed targets to build their own scorecards/dashboards. Some of the metrics are included in the Microsoft Dynamics CRM
based Partner Business System available to partners.
Disclaimer This document is for information purposes only. Microsoft makes no warranties, express or implied
 CEO Balanced Scorecard (ERP VAR)
KPA KPI Top-Quartile Performance User Entry
YTD Revenue Attainment >90% of YTD target
(%)

YoY Revenue Growth >20%

(%)

EBITDA >12%
(%)

Revenue/Employee Depends on individual market, indicative:

($) * mature markets: >$200,000
* developing markets: >$100,000

Services Gross Margin >40%

(%)
Financial

Software Gross Margin >40%

(%)

Operating Overhead <15%

(%)

Working Capital on Hand >15 days

(days)

Direct Sales Costs (% of Total Revenue) <10%

(%)

Marketing Costs (% of Total Revenue) >3%

(%) <6%

New Customer Revenue (% of Total Revenue) >40%

(%)

YoY Customer Add Growth >25%

(%)

YoY Customer Base Growth >15%

(%)

Avg. Deal Size Will vary according to partner size, market focus and length of time in
($) business; to be defined by partner.

Revenue from Top 10 Customers <50%

(%)

This document is for information purposes only. Microsoft makes no warranties, express or implied.
r
 Target Market Focus >50%
(%)

Customer Attrition <10%

(%)
Customer

BREP Revenue Recapture Rate >90%

(%)

Service Contract Renewals >80%

(%)

Active Customer Base >75%

(%)

CSAT, project satisfied business objectives

(%)
>85% (using the recommended Microsoft CSAT format)
CSAT, would recommend
(%)

Customers on current version >75%

(%)

Customers upgrading >75%

(%)

Win rate (Lead to Win) >40%

(%)

Average Sales Cycle (Prospect to Win) Function of average new deal size (usually between 90 and 180 days);
(days) to be defined by partner.

Average Implementation Cycle (Contract to Signoff) Function of average new deal size (but usually between 90 and 360
(days) days); to be defined by partner.

"On Time" project completions >90%

Business Processes

(%)

"On Budget" project completions >90%

(%)

"Free" Work (including warranty work) <5%

(%)

Re-usable objects/code "efficiency" factor >10%

(%)

Methodology alignment >90%

(%)

YTD Utilization Rate >80%

(%)

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 Employee Satisfaction >85% "Agree"
People, Learning and (%)

Involuntary Staff Turnover <5%

(%)
Growth

Technical Certifications, Newest Release >33%

(%)

Average Training Hours per Employee/Year >32

(hours) <64

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 Financial Dashboard (ERP VAR)
KPA KPI Top-Quartile Performance User Entry
Invoice Lag Time <5 working days
(days)

Days Sales Outstanding (DSO) <40 days

(days)

Days Payables Outstanding (DPO) >45 days

Cash

(days)

Invoice Recovery Rate >95%

(%)

Unbilled WIP <30 days

(days)

Working Capital on Hand >15 days

(days)
Capital

Capital Expenditure Variance <5%

(%)

Bad Debt Write-offs <5%

(%)
Costs

Operating Overhead <15%

(%)

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 Marketing Dashboard (ERP VAR)
KPA KPI Top-Quartile Performance User Entry
Overall Source of Lead by Closed Deals No specific target; this is a means of tracking which marketing
tactics are most effective at discovering future customers
(#)

Outbound Marketing Impressions, by tactic deployed 4+ impressions per suspect, per year
Interrupt (#)
Marketing
Cost per Impression, by tactic deployed <$4
($)

Prospects Generated, by tactic deployed >2% average response rate

(#)

Cost per Prospect, by tactic deployed <$200

($)

Suspect Database >150 suspects per new customer add targeted

(#)

"On-Demand" Search engine domain page rank 3 or higher

Marketing (rank)
(SEO, SEM)
Total website visits >1,000 per month
(#)

Unique website visits >75% of total visits

(#)

Landing Page Conversion Rate >5%

(%)

Bounce Rate home page: <55%

(%)

landing pages: <40%

Average Time on Site >60 seconds

(seconds)

Pages/Visit >2.5
(#)

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 Website visits from search engines >50% from search engines
(%)

Top-10 referring keywords <10% company name/brand specific

(%)

Average Cost-per-Click (paid) Differs by market, to be defined by partner.

Indicative: <$7.50 (US)
($)

Email Blasts Hard Bounce Rate <2%

(%)

Open Rate >30%

(%)

Click-Through Rate >7.5%

(%)

Normalized Conversion Rate >10%

(%)

Lead Prospect to Lead Conversion Rate >15%

Qualification (%)

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 Sales Dashboard (ERP VAR)
KPA KPI Top-Quartile Performance User Entry
YTD Quota Attainment >95% of YTD quota
(%)

Quota Attainment Run Rate >85%

(%)

Pipeline Quota Coverage >140% of quota

(%)

YTD New Customers Added >85% of YTD customer add quota

(%)
Outside Sales / New Customer Sales

Minimum Revenue Quota per Sales Person Depends on individual market, indicative:
($) * mature markets: > $750,000
* developing markets: > $500,000
Average Revenue Quota per Sales Person Depends on individual market, indicative:
($) * mature markets: > $1,500,000
* developing markets: > $1,000,000
Cost of Sales, new customers <12% of gross revenue
(%)

Average Sales Cycle (Prospect to Win) Function of average new deal size (usually between 90 and 180 days);
(days) to be defined by partner.

Win rate (Lead to Win) >40%

(%)

Average Margin Obtained Will vary according to partner size, market focus and location; to be
(%) defined by partner.
Indicative: >40%
Win/Loss Report Completion >90%
(%)

Target Market Focus >50%

(%)

YTD Quota Attainment >95% of YTD quota

(%)

Quota Attainment Run Rate >85%

(%)
Existing Customer Sales

Pipeline Quota Coverage >140% of quota

(%)

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 Inside Sales / Existing Customer Sales
Average Revenue Quota per Sales Person Depends on individual market, indicative:
($) * mature markets: > $850,000
* developing markets: > $400,000
Average Revenue per Existing Customer >20% of average new deal size
(%)

BREP Revenue Recapture Rate >90%

(%)

Cost of Sales, existing customers <8% of gross revenue

(%)

Average Sales Cycle (Prospect to Win) <90 days

(days)

Call Quota >30 dials per hour

(dials/hour)
Outbound Prospectors

Prospects Generated 1+ Prospect ("MQP" in MSSP taxonomy) per day

(#/day)

Leads Generated 1+ Lead ("SQP" in MSSP taxonomy) per week

(#/week)

Cost per Lead, excluding marketing Depends on individual market, to be defined by partner. Indicative:
($) * mature markets: <$1,000
* developing markets: <$500

Prospect to Lead Conversion Rate >15%

Qualificati

(%)
Lead

on

Actual Hours Billed YTD, Presales >90% of target

Resources
Dedicated
Pre-Sales

(hours)

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 Services Dashboard (ERP VAR)
KPA KPI Top-Quartile Performance User Entry

Average Total Billable Hour Target YTD Differs by market based on vacation laws etc., to be defined by partner.
(hours) Indicative: 1,200-1,300 hours/year

Average Total Actual Hours Billed YTD >90% of target

(hours)

YTD Utilization Rate >80%

(%)

Average Hourly Realized Chargeout Rate Varies according to practice focus and location, to be defined by
($) partner.

Overall Realized Billable Mark Up Rate (BMUR) >2

(#)

Unbilled WIP <30 days

(days)
General

"Free" Work (including warranty work) <5%

(%)

Total Backlog (contracts, projects, support) >90 days

(days)

Bench Forecast Visibility >7 days

(days)

Re-usable objects/code "efficiency" factor >10%

(%)

Average Implementation Cycle (Contract to Signoff) Function of average new deal size (but usually between 90 and 360
(days) days); to be defined by partner.

Change Orders <10%

(%)

Methodology alignment >90%

(%)

Billable Hour Target YTD Differs by market based on vacation laws etc., to be defined by partner.
(hours) Indicative: 1,400-1,500 hours/year

Actual Hours Billed YTD >90% of target

(hours)
(excluding managers and presales)

Average Total Annual Loaded Cost Differs by market, to be defined by partner. Indicative:
($) * mature markets: <$100k
* developing markets: <$50k
Average Hourly Chargeout Rate Differs by market, to be defined by partner. Indicative:
($) * mature markets: >$150
* developing markets: >$75

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 Billable Resources (excluding managers and presales)
Realized Billable Mark Up Rate (BMUR) >2
(#)

Quality of Work
(index)

Teamwork & Cooperation

(index)

Work Ethics & Dependability

(index) minimum average of 3.5 (on HR performance scale)

Communications Skills
(index)

Interpersonal Effectiveness
(index)

Training and Development >5 days

(days) <20 days

Billable Hour Target YTD Differs by market based on vacation laws etc., to be defined by partner.
(hours) Indicative: 700-800 hours/year

Actual Hours Billed YTD >90% of target

(hours)

Average Total Annual Loaded Cost Differs by market, to be defined by partner. Indicative:
($) * mature markets: <$175k
* developing markets: <$100k
Average Hourly Chargeout Rate Differs by market, to be defined by partner. Indicative:
Managers

($) * mature markets: >$250

* developing markets: >$125
Realized Billable Mark Up Rate (BMUR) >2
(#)

Leadership & People Development

(index)

Project Control
(index) minimum average of 3.5 (on HR performance scale)

Communication & Coordination

(index)

Billable Hour Target YTD Differs by market based on vacation laws etc., to be defined by partner.
Sales Resources
Dedicated Pre-

(hours) Indicative: 700-800 hours/year

Actual Hours Billed YTD >90% of target

(hours)

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 People Dashboard (ERP VAR)
KPA KPI Top-Quartile Performance User Entry
New Hires >5%
Talent Management

(%) <15%

New Employee Mentorships 100%

(%)

Succession Planning 100%

(%)

Training, Leadership Roles >3 days

(days / year) <15 days

Training, Sales / Marketing roles >3 days

(days / year) <10 days

Training, Technical Roles >5 days

Skills and Learning

(days / year) <20 days

Technical Certifications, Total >50%

(%)

Technical Certifications, Newest Release >33%

(%)

Sales / Presales Accreditations >50%

(%)

Total Training / Development Investment >2% of revenue

(%) <5% of revenue

Involuntary Staff Turnover <5%

(%)
Employee Satisfaction and Retention

Total Staff Turnover <15%

(%)

Average Management Tenure >5 years

(years)

Average Overall Tenure >3 years

(years)

Employee Satisfation Survey score >85% "Somewhat Agree" or "Fully Agree"

(index)

<20% "Disagree" or "Somewhat Disagree"

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 Employee Satisfaction Survey
Category Question / Statement User Entry

My work is rewarding Neutral

work being
I am encouraged to learn from my mistakes Neutral
challenging
I continue to learn and grow in my role Neutral

My work directly contributes to the success of our company Neutral

work providing
sense of My work makes a real difference for our customers Neutral
accomplishment
Doing my job well gives me a sense of personal satisfaction Neutral

I get useful feedback, both positive and negative, from my manager Neutral
recognition for your
My manager recognizes when I do a great job Neutral
efforts
Employee performance is evaluate fairly and objectively Neutral

I trust and respect my immediate manager Neutral

relationship with
My immediate manager treats me with fairness and respect Neutral
current supervisor
I am satisfied with my immediate manager. Neutral

direction provided Our top management demonstrates strong leadership Neutral

by executive
Our top management sets clear direction Neutral
management/
ownership I respect and trust our top management Neutral

I can see clear opportunities for career growth within our company Neutral
career development
My manager encourages and supports my personal and professional development Neutral
within organization
I receive the training and coaching needed to develop and grow Neutral

Within or company we always try to do the best for our customers Neutral
organizational
Our company maintains high quality standards Neutral
morale
People are held accountable for their work quality and ethics Neutral

My manager does a good job of sharing information Neutral

communication

This document is for information purposes only. Microsoft makes no warranties, express or implied.
communication Information is shared openly and readily within our company across teams Neutral

I generally have the information needed to do my job well Neutral

In my team we respect and value each other Neutral

immediate team
There is a strong spirit of teamwork and cooperation within my team Neutral
spirit
The other members of my team are there for me when I need help Neutral

I am paid fairly for the work I do Neutral

overall
compensation My salary is competitive with similar jobs in other companies Neutral
package
I am satisfied with my benefits and overall compensation package Neutral

I can disagree with my manager without fear of getting in trouble Neutral

job security and
People with different views and ideas are valued in our company Neutral
diversity
We proactively work to attract and retain people with different backgrounds and skills Neutral

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 HR Performance Definitions
Performance Factor Evaluation Criteria
Quality of Work Ensures completed work is thorough, accurate, neat and acceptable; tests work before leaving the clients site; acknowledges mistakes and learns from them;
works well under pressure; makes continuous work improvements and follows up on inconsistencies; demonstrates attention to detail; organizes work and
time appropriately.

Teamwork & Cooperation Works cooperatively with others as opposed to working in seclusion or competitively; shares all relevant or useful information; willingly exchanges ideas and
opinions; applies effective conflict resolution techniques within the team; creates commitment to team goals and takes ownership of team decisions; builds
team spirit; understands and appreciates different and opposing perspectives.

Work Ethics & Dependability Maintains an acceptable amount of absenteeism from work, adheres to breaks and schedules; arrives at work on time; meets work standards, commitments
and deadlines; works independently; accepts accountability for work; adapts to changing environment; stays focused under pressure.

Communications Skills Shows interest in what others have to say; listens attentively to questions and comments and paraphrases for understanding; expresses appreciation of others’
points of view; speaks clearly and concisely; expresses thoughts and ideas easily in groups and in on-to-one conversations; adapts communication style to fit
the audience in order to keep their attention and enhance their understanding.

Interpersonal Effectiveness Applies appropriate conflict resolution techniques; treats others with respect and dignity; looks for the positive in situations as opposed to dwelling on the
negative; encourages and supports others; seeks to understand other people’s viewpoints; builds a network of relationships outside the company or others in
the same industry or profession.

Leadership & People Development Guides, develops, motivates and provides constructive feedback to others; delegates work appropriately; recognizes and rewards the efforts of employees;
identifies development opportunities; empowers others to take initiative and accountability for their work; networks and builds relationships externally and
internally; influences and motivates others.

Control Accountable for budget, work performance and product quality; identifies and implements opportunities for cost reductions, revenue generation and process
improvements.

Communication & Coordination Keeps managers, direct reports, colleagues and client groups informed of relevant issues and activities; effectively establishes priorities; utilizes time and
resources well when making plans that affect others, involves others in appropriate decisions; works cooperatively with other parts of the organization to
allocate resources and coordinate activities.

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 HR Performance Scale
Performance Score Performance Ranking Performance Description

5 Outstanding Performance is consistently and significantly above the defined objectives. The individual performs outstanding work above and beyond what
is expected of a person in this position and demonstrates exceptional knowledge, skills, and personal attributes that are critical to successful
performance. Any performance not significantly exceeding expectations is minor or due to events not under the control of the individual.

4 Exceeding Expectations Performance occasionally exceeds the defined performance objectives and expectations and the individual is generally performing above the
standard expected of a person in this position. The individual’s performance is characterized by demonstrating above average knowledge,
skills, and personal attributes that are critical to effective and successful performance.

3 Meeting Expectations Performance meets the defined objectives and the individual is performing well and is considered effective and skilled in the position.

2 Improvement Needed Performance is below the minimum acceptable performance standards and expectations. Lapses in specific performance objectives and
factors or overall performance are due to the individual’s deficiency in the knowledge, skills and personal attributes that are critical to
successful performance. A performance development plan is required to improve specific performance objectives and factors or the
individual's overall performance rating.

1 Not Acceptable Performance is significantly below the minimum acceptable performance standards and expectations, and cannot continue. An immediate
performance corrective plan is required to improve the individual's performance.

This document is for information purposes only. Microsoft makes no warranties, express or implied.
User Guide - How to use and modify the SC / DB
General As mentioned in the introduction, the scorecard and dashboards are meant to help partners identify important KPIs, provide clear
definitions of those KPIs and give insight into performance of top-partners for benchmarking. Partners can either use the information to
modify/extend existing BI tools or use the spreadsheet iself to capture performance data.

KPAs Key Performance Areas are higher level business categories or priorities that partners need to manage closely to achieve business success.
KPAs are typically made up of 3-10 KPIs that - in combination - indicate the "health" of the KPA.

KPIs Key Performance Indicators are the metrics used to monitor the health and success of a specific part of the business. Some KPIs reside on
both the Executive Scorecard and one or more Dashboards to drive visibility and joint accountability across the business. Each KPI is described via a
definition (see "Metric Definition" tab), a target value (see "Targets" below) and an actual value which is entered into this spreadsheet by the user or
- if the partner implements e.g. the Microsoft Dynamics Partner Business System - can be captured/calculated automatically.

Targets The "Top-Quartile Performance" targets are used as the

foundation for the scorecard and dashboards i.e. user-entered data will
be evaluated against these and performance will be shown as
RED/YELLOW/GREEN. If partners want to modify the targets for their
own use this can be done by editing the "Conditional Formatting" rules
set up for each metric in the "User Entry" column.

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 Metric Definitions
Scorecard / Dashboard KPI Definition
Executive SC YTD Revenue Attainment YTD operating revenues versus YTD revenue target

YoY Revenue Growth (YTD revenue minus LYTD revenue) divided by LYTD revenue

EBITDA Total operating revenues less total operating expenses (excluding interest, taxes, depreciation, and amortization), divided by
total operating revenues

Revenue/Employee Total operating revenues divided by number of total employees. Target guidance is annual revenue, should be broken down
further to monthly targets adjusted for seasonality.

Services Gross Margin Total services billings less total service delivery costs, divided by total services billings

Software Gross Margin Total software revenue less total software costs, divided by total software revenues.

Operating Overhead Total operating expenses (excluding all sales, marketing, software, and service delivery costs, but including any owner
compensation other than operating profits), divided by total operating revenues.

Days Working Capital on Hand (Total current assets less total current liabilities) divided by total annual expenses, multiplied by 365 days.

Direct Sales Costs (% of Total Revenue) Total sales costs including salaries, commissions, and benefits (but excluding pre-sales costs, marketing costs, and outbound
prospecting costs), divided by total operating revenues.

Marketing Costs (% of Total Revenue) Total marketing expenditures (excluding marketing personnel salaries, bonuses, and benefits), divided by total operating
revenues.

New Customer Revenue (% of Total Total revenue coming from net new customers, divided by total operating revenues.
Revenue)
YoY Customer Add Growth (# of net new customers added YTD - # of new customers added LYTD) / # of new customers added LYTD

YoY Customer Base Growth # of net new customers added / total # of customers in install base

Avg. Deal Size total average revenue per new customer add (SW + services + other)

Revenue from Top 10 Customers the percentage of total revenue that comes from the 10 biggest clients

Target Market Focus the percentage of total revenue coming from industries, verticals, or sectors specifically targeted

Customer Attrition the number of customers leaving, as a percentage of total customers

BREP Revenue Recapture Rate the percentage of BREP revenue renewed each year

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 Service Contract Renewals the percentage of service/support contracts renewed each year, excluding BREP

Active Customer Base the number of customers who have been invoiced in the last 12 months, divided by the number of total customers

CSAT, project satisfied business objectives

as measured by an annual customer satisfaction (CSAT) survey, we recommend use of free Microsoft Partner Network CSAT survey tool

CSAT, would recommend

Customers on current version the number of customers with a software version no more than 18 months old, divided by the total amount of active customers
(those who have been invoiced in the last 12 months)

Customers upgrading the number of customers who have accepted any software upgrades made available in the last 18 months, divided by the total
amount of active customers (those who have been invoiced in the last 12 months)

Win rate (Lead to Win) the percentage of sales qualified opportunities (leads) won

Average Sales Cycle (Prospect to Win) the average length of time it takes to close an opportunity from hand-off from marketing to contract signed

Average Implementation Cycle (Contract the average length of time it takes to deliver a project, from the time it is contracted
to Signoff)
"On Time" project completions the percentage of projects that were completed in the timeline indicated in the project plan, adjusted for any customer-
authorized change orders

"On Budget" project completions the percentage of projects that were delivered for the amount originally contracted, adjusted for any customer-authorized
change orders

"Free" Work (including warranty work) work that has had to be performed as a result of contractual obligations, but is not directly billable to a client

Re-usable objects/code "efficiency" factor the amount of project or ad hoc client work that can be re-used or leveraged in future projects, as a percentage of the total
project work completed

Methodology alignment the percentage of projects that follow the organization's Implementation Methodology e.g. Microsoft Dynamics Sure Step

YTD Utilization Rate the number of hours - across all billable resources - that have actually billed versus YTD target (does NOT include time spent
on travel, training, re-work, free work, pre-sales, internal meetings, unbillable external meetings, research and development,
internal projects, or marketing), divided by the number of hours all billable resources were expected to bill directly to clients

Employee Satisfaction see Employee Satisfaction tab

Involuntary Staff Turnover the total number of employees leaving in the last 12 months (excluding those who the Partner actively decided to dismiss or lay
off), divided by the total number of employees

Certifications, newest release the number of technical resources - consultants, developers, architects. etc. - with up-to-date relevant technical certification as
percent of total number of technical resources

Average Training Hours per Person/Year the total number of Partner-authorized training hours attended by all employees, divided by the number of total employees

Financial Invoice Lag Time the length of time it takes to issue an invoice, once a contracted payment becomes due

This document is for information purposes only. Microsoft makes no warranties, express or implied.
Financial

Days Sales Outstanding (DSO) total receivables multiplied by 365, divided by total annual revenue

Days Payables Outstanding (DPO) total payables multiplied by 365, divided by total annual expenses

Invoice Recovery Rate total invoice amounts collected divided by total invoice amounts issued

Unbilled WIP total "backlog" in days of contract work performed but not yet invoiced

Days Working Capital on Hand total current assets less total current liabilities multiplied by 365, divided by total annual expenses

Capital Expenditure Variance actual capital expenditures YTD less planned capital expenditures YTD, divided by planned capital expenditures

Bad Debt Write-offs total bad debts divided by total invoice amounts issued

Operating Overheads total operating expenses (excluding all sales, marketing, software, and service delivery costs, but including any owner
compensation other than operating profits), divided by total operating revenues

Marketing Source of Lead by Closed Deals where do closed deals originate, by marketing tactic deployed? (see Marketing Tactic List below)

Marketing Impressions, by tactic deployed an impression is the receipt by a suspect of any marketing "touch" (e.g. postcard, letter, email, seminar invite, etc.)

Cost per Impression, by tactic deployed the cost of each marketing impression

Prospects Generated, by tactic deployed a prospect is a suspect who responds in any way to a marketing impression (e.g. requests further information, responds to a
promotional offer, etc.)

Cost per Prospect, by tactic deployed the marketing cost of each prospect acquired

Suspect Database a suspect is a company you would like to have as a customer

Search engine domain page rank Assessment of your search engine "friendliness"

Total website visits the total number of browsers visiting your website

Unique new website visits the total number of unique browsers visiting your website

Landing Page Conversion Rate % of those who click through to a page specifically designed to "receive" incoming browsers from search engines that provide
contact details (name, company, email, etc.)?

Bounce Rate of those who click through to your website, how many immediately leave?

Average Time on Site average # of seconds spent on your website by those who click through

Pages/Visit average # of web pages viewed by those who click through to your website

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 Website visits from search engines % of website visitors coming from search engines

Top-10 referring keywords % of those that click through to your website that use non-generic search phrases e.g. enter the name of your company

Average Cost per Click (paid) how much are your spending per adword to get someone to click through to your website?

Hard Bounce Rate of those emails that you send out, how many do not even get through to the intended recipient?

Open Rate of those emails that are received by the intended recipient, how many actually get opened?

Click-Through Rate of those emails that get opened by the intended recipient, how many then click through to your website or landing page?

Normalized Conversion Rate of those who click through to a page specifically designed to "receive" incoming browsers from outbound email campaigns,
how many provide their contact details (name, company, email, etc.)?

Prospect to Lead Conversion Rate of those who respond in any way to a marketing impression (e.g. requests further information, responds to a promotional offer,
etc.), how many become qualified leads (i.e. have budget, authority, identifiable business needs, and have a timeframe for
making a purchase decision)?
Sales YTD Quota Attainment what is the actual revenue generated YTD versus YTD sales quota?

Quota Attainment Run Rate based on actual revenue generated YTD, and extrapolated out for the remainder of the year, what percentage of the annual
quota will be achieved?

Pipeline Quota Coverage based on current potential deals in the pipeline, adjusted by their probability of close, how much revenue will be generated?

YTD New Customers Added how many new deals have been closed versus YTD target?

Minimum Revenue Quota per Sales minimum quota assigned to any outside sales person
Person
Average Revenue Quota per Sales Person minimum average quota assigned to outside sales team members

Cost of Sales, new customers as a percentage of the total revenue generated by new deals, how much is paid to the sales team including salary,
commissions, and benefits? (excluding pre-sales costs, marketing costs, and outbound prospecting costs)

Average Sales Cycle (Prospect to Win) from the point at which a prospect is identified (see definition of Prospect in Marketing section), how many days does it take,
on average, to close the deal?

Win rate (Lead to Win) the percentage of sales qualified opportunities (leads) won; KPI on Exec SC

Average Margin Obtained for new deals closed, what is the gross margin (software and services combined) obtained after any discounting?

Win/Loss Report Completion for each new deal either won or lost, why was it won or lost?

Target Market Focus the percentage of total revenue coming from industries, verticals, or sectors specifically targeted; KPI on Exec SC

Average Revenue per Existing Customer the average revenue from existing customers as percent of average revenue from new customers

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 BREP Revenue Recapture Rate the percentage of BREP contracts renewed each year; KPI on Exec SC

Cost of Sales, existing customers as a percentage of the total revenue generated by existing customers, how much is paid to the sales team including salary,
commissions, and benefits? (excluding pre-sales costs, marketing costs, and outbound prospecting costs)

Call Quota how many calls is an outbound prospector/telemarketing expected to make?

Prospects Generated how many prospects is an outbound prospector/telemarketing expected to generate?

Leads Generated how many qualified leads is an outbound prospector/telemarketing expected to generate?

Cost per Lead, excluding marketing what is the cost of each qualified lead generated?

Prospect to Lead Conversion Rate of those who respond in any way to a marketing impression (e.g. requests further information, responds to a promotional offer,
etc.), how many become qualified leads (i.e. have budget, authority, identifiable business needs, and have a timeframe for
making a purchase decision)?
Actual Hours Billed YTD, Presales the utilization performance expected of dedicated pre-sales resources

Services Average Total Billable Hour Target YTD the average number of hours expected to be billed YTD across all billable resources as per annual financial plan; does NOT
include time spent on travel, training, re-work, free work, pre-sales, internal meetings, unbillable external meetings, research
and development, internal projects, or marketing

Average Total Actual Hours Billed YTD the average number of hours actually billed YTD across all billable resources; does NOT include time spent on travel, training,
re-work, free work, pre-sales, internal meetings, unbillable external meetings, research and development, internal projects, or
marketing

YTD Utilization Rate the number of hours - across all billable resources - that have actually billed versus YTD target (does NOT include time spent
on travel, training, re-work, free work, pre-sales, internal meetings, unbillable external meetings, research and development,
internal projects, or marketing), divided by the number of hours all billable resources were expected to bill directly to clients:
KPI on Executive SC
Average Hourly Realized Chargeout Rate the chargeout rate actually realized, for all work billed to clients

Overall Realized Billable Mark Up Rate the total resource billings divided by all billable resources' loaded cost (salary plus benefits)
(BMUR)
Unbilled WIP work that is billable and has been performed, but not yet invoiced

"Free" Work (including warranty work) work that has had to be performed as a result of contractual obligations, but is not directly billable to a client; KPI on Exec SC

Total Backlog (contracts, projects, work that is contracted for but not yet performed, divided by the total capacity of all billable resources
support)
Bench Forecast Visibility bench forecast is a "snapshot" indicating which resources will become non-billable

Re-usable objects/code "efficiency" factor the amount of project or ad hoc client work that can be re-used or leveraged in future projects, as a percentage of the total
project work completed; KPI on Exec SC

Average Implementation Cycle (Contract the average length of time it takes to deliver a project, from the time it is contracted; KPI on Exec SC
to Signoff)

This document is for information purposes only. Microsoft makes no warranties, express or implied.
 Change Orders the total value of all client-authorized change orders, divided by the total amount of project billings

Methodology alignment the percentage of projects that follow the organization's Implementation Methodology e.g. Microsoft Dynamics Sure Step

Billable Hour Target YTD the average number of hours each billable resource of a given type is expected to bill directly to clients YTD (does NOT include
time spent on travel, training, re-work, free work, pre-sales, internal meetings, unbillable external meetings, research and
development, internal projects, or marketing
Actual Hours Billed YTD the number of hours each billable resource has actually billed YTD

Average Total Annual Loaded Cost the total cost of salary, bonuses, and benefits, but NOT overheads

Average Hourly Chargeout Rate the chargeout rate actually realized, for all work billed to clients

Realized Billable Mark Up Rate (BMUR) the total billings divided by a billable resource's loaded cost (salary plus benefits) for a given resource type

Quality of Work
see HR Performance Definitions and HR Performance Scale tabs

Teamwork & Cooperation

see HR Performance Definitions and HR Performance Scale tabs

Work Ethics & Dependability

see HR Performance Definitions and HR Performance Scale tabs

Communications Skills
see HR Performance Definitions and HR Performance Scale tabs

Interpersonal Effectiveness
see HR Performance Definitions and HR Performance Scale tabs

Training and Development the number of working days - per person - invested in developing/maintaining product, technology and project delivery skills
and expertise

Leadership & People Development

see HR Performance Definitions and HR Performance Scale tabs

Project Control
see HR Performance Definitions and HR Performance Scale tabs

Communication & Coordination

see HR Performance Definitions and HR Performance Scale tabs

People New Hires the number of employees hired within last 12 months as percentage of total employees

New Employee Mentorships the percentage of employees hired within last 12 months with senior employee mentor

Succession Planning the percentage of functional managers with formalized succession plan i.e. successor identified and development plan
established

Training, Leadership Roles the number of working days - per person - invested in developing/maintaining leadership and management skills; includes
participation in relevant conferences, workshops, industry/leadership associations etc.

Training, Sales / Marketing roles the number of working days - per person - invested in developing/maintaining sales and communication skills

This document is for information purposes only. Microsoft makes no warranties, express or implied.
Training, Technical Roles the number of working days - per person - invested in developing/maintaining product, technology and project delivery skills
and expertise

Technical Certifications, Total the number of technical resources - consultants, developers, architects. etc. - with relevant technical certification

Technical Certifications, Newest Release the number of technical resources - consultants, developers, architects. etc. - with up-to-date relevant technical certification;
KPI on Exec SC

Sales / Presales Accreditations the number of sales and presales resources with relevant up-to-date accreditation

Total Training / Development Investment the total direct investment in training and development activities as percent of total company revenue, not including salary
costs, opportunity costs etc.

Involuntary Staff Turnover the total number of employees leaving in the last 12 months (excluding those who the Partner actively decided to dismiss or lay
off), divided by the total number of employees; KPI included in Exec SC

Total Staff Turnover the total number of employees leaving in the last 12 months (including those who the Partner actively decided to dismiss or lay
off), divided by the total number of employees

Average Management Tenure the average number of years functional and top management has been employed by partner (excluding owner/founder)

Average Overall Tenure the average number of years all employees have been employed by partner (excluding owner/founder)

Employee Satisfation Survey score the overall score from bi-annual Employee Satisfaction Survey (see "Employee SAT" tab for details)

This document is for information purposes only. Microsoft makes no warranties, express or implied.