These executives often start with corporate mission statements to communicate the company's primary objectives to employees. Some objectives may include finding new markets for products, or maximizing earnings for primary shareholders. Top managers work toward their objectives by assigning specific duties to direct reports. Their direct reports then assign tasks to employees within their departments.
Pollock The concept of Key Performance Indicators KPIs has been around for as long as many of us have been working in the services sector. However, each of our organizations may have a different understanding of their importance and use.
In fact, the first hurdle for many service managers is gaining the proper understanding of exactly what KPIs are, and what they can do to help them run their service operations more efficiently.
Definition of Key Performance Indicators KPIs There are numerous definitions of KPIs available in business textbooks, through services trade associations, or on the Web, each comprised of their own keywords, buzzwords and, oftentimes, competitive branding.
However, regardless of which definition you ultimately embrace, there are still some conventions that you will need to accept as well. Basically, KPIs are tools that may be used by an organization to define, measure, monitor, and track its performance over time toward the attainment of its stated organizational goals.
It goes on to say that "KPIs vary between companies and industries, depending on their priorities or performance criteria". For example, the services industry may evaluate itself on the basis of KPIs such as annual revenues, year-to-year trends, or growth in the size of the mobile workforce, etc.
KPIs differ per organization; business KPIs may be net revenue or a customer loyalty metric, while government might consider unemployment rates". Most often a KPI represents how far a metric is above or below a pre-determined target". In these cases, KPIs are typically shown as a ratio of actual-to-target and are designed to instantly let a user know if they are meeting their stated goals, or are somewhat off target.
Regardless of which definition your organization adopts, the following factors should always be taken into account: The KPIs must … Reflect, and relate directly to, the organization's goals. Be quantitative and quantifiable. Be linked directly to the measurement of the organization's success.
First and foremost, the KPIs must relate directly to the organization's stated goals.
These are the metrics against which the organization will be driven to perform in order to measure its success over time. For example, if your organization's primary goals are to have the field engineer arrive at the customer site as quickly as possible, complete the repair within the contracted time, and leave the customer completely satisfied, then you will probably be looking at KPIs reflecting Average Time to Respond AVRMean Time to Repair MTTRand various other customer satisfaction metrics and indices.
In most cases, your organization will typically look at all of these metrics, although some departments may focus on one set of KPIs, while others may focus in different areas.
The KPIs you use must also be quantitative and quantifiable. The standard rule of thumb is "if you can't measure it, you can't manage it. For example, if your goal is to improve customer satisfaction from "good" to "very good", it may be difficult to objectively distinguish one level from the other.
In the first case, you have not met your goal; but, in the second case, you have. Only by quantifying the KPI used to measure performance in this case, are you able to determine whether you have succeeded or not.
Finally, the KPIs must be linked directly to the specific measures of the organization's success. Simply tracking data over time, and reporting it back to management, is not useful if the data itself is not meaningful to the measure of success. For example, using KPIs to track employee attendance may be of use to your Human Resources department, but may not be directly relevant to the measure of your service engineer performance in the field.
While these KPIs may be important to HR, there are far more that you should be using instead to measure field service performance e.
As such, the selection of the specific KPIs to be used may differ widely from one organization to another - or even between and among departments within the same organization. In order for a KPI to have maximum value, it must be clearly defined, quantifiable, and relatively easy to measure.
Metrics that are vague in definition; qualitative or subjective in nature; and next to impossible to collect, interpret and analyze will not serve as a good basis for a KPI. KPIs should also be directly linked to the critical factors that drive the performance of the organization.
If the metric is not directly linked to a critical organization success factor, it will probably not be worth the resources and dollar expenditures to collect and process. In the world of KPIs, there is a big difference between "need to know" and "nice to know". In the former, the resources required to collect, analyze, interpret, and distribute the KPI information will almost certainly be worth the effort.The key difference in performance measures versus value measures is the reason for doing the measuring.
appropriate mix of project management professionals, business unit managers, and executives. Use a Likert scale from to rate the statement: Projects are aligned with the business’s strategic objectives.
Top managers use a number of methods to control their organizations. These executives often start with corporate mission statements to communicate the company's primary objectives to employees. In Week Five, you examine how business strategy is evaluated. When a strategic plan has been formulated with measurement guidelines, and the presence of resources to implement the plan has been determined, the company must arrange the appropriate controls, performance measures, and feedback systems to use for various business scenarios.
appropriate to use different weighting factors for each of the performance measures that contribute to a level of service or KPI (e.g., the condition of footways may . MKT CH1-CH4. Marketing Chapter 1 - 4. arrange an exclusive deal with one supermarket chain to carry a flavor not available in any other store.
Measuring the change in caninariojana.com's profitability during the first three months of implementation an appropriate performance measurement standard for this strategy. Performance management is when an organization uses performance measures and standards to achieve desired results.
It is a forward-looking, continuous process. It .