KPI – Key Performance Indicators

Key performance indicators are used in four main areas:Dashboards

  • Revenue improvement
  • Cost reduction
  • Process cycle-time improvement
  • Increased customer satisfaction

The following are KPI examples from real-life scenarios. Using these KPIs will benefit in reducing overheads, errors, rework, delays and costs.

Business Process – Key Performance Indicators

The following are KPI examples for gauging business process performance:

  • Percentage of processes where completion falls within +/- 5% of the estimated completion
  • Average process overdue time
  • Percentage of overdue processes
  • Average process age
  • Percentage of processes where the actual number assigned resources is less than planned number of assigned resources
  • Sum of costs of “killed” / stopped active processes
  • Average time to complete task
  • Sum of deviation of time (e.g. in days) against planned schedule of all active projects

Service Level Agreement (SLA) – Key Performance Indicators

The following are KPI examples of SLA performance:

  • Percentage of service requests resolved within an agreed-upon/acceptable period of time
  • Cost of service delivery as defined in Service Level Agreement (SLA) based on a set period such as month or quarter
  • Percentage of outage (unavailability) due to implementation of planned changes, relative to the service hours
  • Average time (e.g. in hours) between the occurrence of an incident and its resolution
  • Downtime – the percentage of the time service is available
  • Availability – the total service time = the mean time between failure (MTBF) and the mean time to repair (MTTR)
  • Number of outstanding actions against last SLA review
  • The deviation of the planned budget (cost) is the difference in costs between the planned baseline against the actual budget of the Service Level Agreement (SLA)
  • Percentage of correspondence replied to on time
  • Percentage of incoming service requests of customers have to be completely answered within x amount of time
  • Number of complaints received within the measurement period
  • Percentage of customer issues that were solved by the first phone call
  • Number of operator activities per call – maximum possible, minimum possible, and average. (E.g. take call, log call, attempt dispatch, retry dispatch, escalate dispatch, reassign dispatch, etc.)
  • The number of answered phone call per hour
  • Total Calling Time per Day or week.
  • Average queue time of incoming phone calls
  • Cost per minute of handle time
  • Number of un-responded emails
  • Average after call work time (work done after call has been concluded)
  • Costs of operating a call centre / service desk, usually for a specific period such as month or quarter
  • Average number of calls / service requests per employee of call center / service desk within measurement period
  • Number of complaints received within the measurement period

Service Quality – Key Performance Indicators

The following are KPI examples for gauging Service Quality performance:

  • Cycle time from request to delivery
  • Call length – the time to answer a call
  • Volume of calls handled – per call centre staff
  • Number of escalations how many bad
  • Number of reminders – how many at risk
  • Number of alerts – overall summary
  • Customer ratings of service – customer satisfaction
  • Number of customer complaints – problems
  • Number of late tasks – late

Efficiency – Key Performance Indicators

The following are KPI examples indicating Efficiency performance:

  • Cycle time from request to delivery
  • Average cycle time from request to delivery
  • Call length
  • Volume of tasks per staff
  • Number of staff involved
  • Number of reminders
  • Number of alerts
  • Customer ratings of service
  • Number of customer complaints
  • Number of process errors
  • Number of human errors
  • Time allocated for administration, management, training

Compliance – Key Performance Indicators

The following are KPI examples for Compliance performance:

  • Average time lag between identification of external compliance issues and resolution
  • Frequency (in days) of compliance reviews

Budget – Key Performance Indicators

  • Sum of deviation in money of planned budget of projects

Index used in Key Performance Indicators

The following indices are used in KPI as indicators:

Tolerating: The user notices performance lagging within responses greater than T, but continues the process.
Frustrated: Performance with a response time greater than F seconds is unacceptable, and users may abandon the process.
Satisfied: The user is fully productive. This represents the time value (T seconds) below which users are not impeded by application response time.

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Leveraging KPI: An Example

PNMsoft’s Sequence Kinetics is an Intelligent Business Process Management Suite which provides quick access to KPI dashboards, assisting you in managing your business process efficiently.

Intelligent AnalyticsSequence Kinetics provides management with the KPI dashboards to ensure that operational processes are under efficient and effective control.

For high visibility and real time control, Sequence Kinetics enables process owners and managers to create a dashboard relating to KPI. Corrective actions can be focused efficiently.

Sequence Kinetics integrates with Microsoft SQL Server Reporting Services, enabling managers to analyse performance and determine trends for KPIs and SLAs.

Request our White Paper on Intelligent BPM and learn how you can obtain KPI visibility by automating and optimising your organisation’s business processes:

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