When you are providing a product or service, Key Performance Indicators (KPIs) are important because they provide qualitative measurements that directly correspond to customer value. Measuring KPIs provides Managers and employees with visibility of the overarching customer goals that drive the organization forward. KPIs drive Continuous Improvement through setting expectations and identifying areas of opportunity to improve value to the customers.
As a result, established KPIs provide managers with immediate feedback on their department or team’s performance and can identify gaps or trends. Subsequently, having this information on a daily, weekly, and monthly basis helps teams or business units maintain agility to meet long term customer value expectations.
But how do you know what to measure or if your existing KPI’s are measuring the right thing? Generally, we work with clients who measure customer value through a Net Promoter Score (NPS). In this 4-part series, we take you through creating effective KPI’s on four dimensions:
- Service – Your departments ability to provide consistent and reliable service relative to the expectations of the end user
- Quality – Your departments ability to satisfy the end user with the service without incurring re-work
- Speed – Time required for your department to deliver a service to an end user
- Resource Efficiency – Your department’s ability to leverage resources efficiently and effectively to meet the other three dimensions: service, quality and speed
Creating metrics, achieving targets and making improvements related to these four dimensions will improve the value to the end user. Above all, improving value for the interrelated departments ultimately leads to more effective processes, improvements in resource planning, fewer errors, and a culture of continuous improvement within an organization.
Questions? Contact Us
If you want to learn how to instill a culture of Continuous Improvement within your organization contact us at Propel Solutions today. We specialize in creating high performing teams and have a proven track record of powerful results.
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