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The dimensional material figure of merit and its common dimensionless form areHere $S$ is the Seebeck coefficient, $\sigma$ the electrical conductivity, ${\rho }_e=1/\sigma$ the electrical resistivity, and $\kappa ={\kappa }_e+{\kappa }_l$ the total thermal conductivity. $Z$ has units ${\mathrm{K}}^{-1}$; $ZT$ is dimensionless.

Seek a large thermoelectric power factor $S^2\sigma$ and low thermal conductivity. Optimize carrier concentration and band structure to balance thermopower and conductivity. Alloy disorder, complex unit cells, grain boundaries or suitable nanoscale features can scatter phonons and reduce lattice heat transport.

The properties are coupled: increasing carrier density often reduces $|S|$, electronic heat conduction grows with electrical transport, and boundaries that scatter phonons may also scatter carriers. Evaluate the net change and the operating-temperature range, rather than maximizing each favorable term independently.^[ref]

Tune doping to the optimum carrier concentration; a rise in conductivity is useful only if it outweighs the accompanying loss of thermopower and extra electronic heat conduction. Band convergence, favourable density of states and energy-dependent transport can improve the power factor $S^2\sigma$, provided mobility is retained.

Reduce lattice thermal conductivity through alloy disorder, heavy or complex unit cells, grain boundaries and nanoscale inclusions that scatter phonons. Aim to scatter heat-carrying phonons much more strongly than charge carriers; indiscriminate disorder can reduce both thermal and electrical conductivity. Nanostructuring and interfaces can therefore help, but an improvement must be demonstrated in total $ZT$ at the operating temperature, not inferred from lower $\kappa$ alone.^[ref]

At low carrier concentration, $|S|$ can be large but electrical conductivity is too small. Increasing the carrier concentration usually increases $\sigma =ne\mu$, while $|S|$ decreases. Electronic thermal conductivity rises approximately as ${\kappa }_e=L\sigma T$ by the Wiedemann-Franz law; lattice conduction supplies an additional background. Thus neither an insulator nor an ordinary metal usually maximizes $Z$.

Heavily doped semiconductors and semimetals often give the useful compromise, near a maximum of $S^2\sigma /\kappa$ as doping is varied. The optimum is material- and temperature-dependent; there is no universal optimal concentration.