ProSchools

Key Performance Indicator Plan

Version: 1.1Date published: August 2014Presented by: Mechelle Davidson

KPI PLAN

Key Performance

A Key Performance Indicator (KPI) is a measureable value that demonstrates the effectiveness of a business process at contributing to the attainment of key business objectives. By monitoring the right KPIs and business metrics, you gain valuable insight into the performance of your business and, more importantly, gain the strategic awareness you need to make the right decision at the right time. By using KPIs as a business we can cultivate a data-driven culture within our organization.

The KPI Plan

The Key Performance Indicator (KPI) Plan helps to define the primary success indicators for our industry. KPIs are predetermined measurements that reflect the critical success factors of an organization. As KPIs will differ by organization, industry, and even by departments; this report is designed to help identify the KPIs for our business.

This report will show an overview of important tasks that will need to be performed to develop clear, useful KPIs. Following the overview is a more detailed guide of the information that will need to be considered when developing our KPIs.

Overview

A KPI is a measure designed to track a critical performance variable over time and provide a statistical measure of how well an organization is doing. KPIs should be few in number and focus on the product or service’s potential contribution to our business success. Taking the information from the weekly score card produced and prepared by Katherine Krawczyk, I have developed a rough outline of those factors that influence and drive our performance and the possible KPI’s that we would derive from that information. These KPIs can be changed or altered to reflect the different areas of business as necessary or to reflect different selected informational needs that are wanted.

CHOOSE KEY PERFORMANCE INDICATORS

With many different types of metrics available, how do we decide which ones are critical to our business? The answer lies in distinguishing which metrics are actually key performance indicators (KPIs). As performance metrics explicitly are linked to a strategic objective that help an organization translate strategy execution into quantifiable terms. A Well-designed KPI provides quick insight into trends and summary information, while supporting drill-down into more detailed metrics. This allows our organization to see where it's doing well and where it requires improvements and/or course adjustments. The simplest way to think of KPIs as the yardstick by which success and progress are measured; they are the measures most tightly linked to the organization's success or failure in executing a strategy.

Currently the three top KPIs that are monitored and reported on are listed below.

1.Average of Calls Answered % (ACA)

2.Average Speed of Answer (ASA)

3.Average Abandoned Rate % (AAR)

While not all metrics are KPIs, KPIs are metrics. Within our organization we have many different metrics, but few KPIs. Metrics can be a measure of just about anything, KPIs are the measures that matter the most. KPIs are actionable so that they help us to achieve our set goals.

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KPI PLAN

Unsanctionable metrics create difficulty in changing and achieving goals, if it can’t be changed with specific actions. KPIs are:

Outcome-oriented—tied to an objective Target-based-have at least one defined target value that is time sensitive Rated or graded-explicit thresholds grading the difference (or gap) between target and actual

values

These three criteria is used to evaluate whether a metric meets KPI standards, ensuring focus on those metrics that truly matter to the success of an organization.

The Value of KPIs

Although migrating metrics to KPIs may seem time-consuming exercises, the benefits will far outweigh the costs. By simply focusing attention on smaller numbers of key performance indicators we can organize the outcomes to better align service with our customers. Key performance indicators are an important part of the roadmap on your journey to better performance.

Identifying the right KPIs are important, for managing, monitoring, and analyzing our environment. Managers are under constant pressure to achieve performance targets, reach higher performance levels, and to ensure that our work supports and furthers the overall goals.

Performance management is a process used to manage this type of performance. To answer traditional questions of employees’ skills, and the extent that they are achieving the desired outcome, performance evaluation processes are looked at. This shows how an employee has performed their duties. What is often missing from this type of evaluation is whether the employee is doing the right thing. Even if a hard-working employee is dedicatedly working, if it isn’t advancing us toward our goal or purpose, what is the point? KPIs allow for both an organizational and individual look. Envision providing superior customer service, a KPI may target the number of customer support requests that remain unsatisfied by the end of a week. By monitoring this, you can directly measure how well your organization is meeting its long-term goal of providing outstanding customer service.

While it is important for organizations to choose the correct KPIs for business performance, equally it is useful if managers and employees define KPIs for their teams an ideal situation is where KPIs cascade from one level to the next in the organization. This will help people to work in such a way that their activities are aligned with corporate strategy.

When employees’ goals are defined in terms of organizational KPIs, we ensure the employees’ individual goal is aligned and linked to the organizational strategy: Examples of this are:

o Organizational vision-Be known for superior customer service and satisfaction.

Organizational objective: To reduce dissatisfied customers by a %. Organizational KPI- The number of customer complaints that remain unresolved weekly. Team Members Goal-To increase number of satisfactory complaint resolutions by %.

o Each employee goal will have at least one associated KPI, and how they will specifically measure, on regular basis, whether or not they are meeting their goal.

Team member KPI-weekly percentage difference in complaints handled that resulted in satisfaction versus no satisfied customers.

KPIs link organizational vision to individual action. Looking at the below figure, our actions are listed.

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KPI PLAN

By applying principles of KPIs to employee goals and performance, we create a direct link between all of our key success factors that are derived from an overall strategy. The result is team members actually doing what they should be and our ability to measure and determine how well they are doing it.

Employee Goals and KPIs

KPIs are applied to business intelligence (BI), to gauge business trends and advise tactical courses of action. Things needed for identification of our top KPIs are:

A predefined organizational process.- Customer Service Calls Clear business objectives for the process.-Resolution for Customers’ Needs Quantitative and qualitative measurements.-Call Metrics Compiled An active approach to finding and remedying enterprise variances.-Actions Taken

Above all else, these are set as indicators to measure data against a sort-of enterprise success gauge. Ultimately, these help us to progress toward our declared goals, both as individual and by organizational.

Other related metrics that can be useful in reaching our business goals are:

Real-time analytics, the use of or the capacity to use available data and resources when needed. Call Conversions, number of calls that are converted into either sales, appointments or other

determinant goal. Handle Time, the total time taken to answer a call and complete the necessary administration

or actions. First Contact Resolution, the efficiency of how a call is handled and the customers issue is

resolved within one call. Total Answered Calls, the total number of calls answered by us. Service Level is the percentage of completed, resolved or closed interactions between agents

and customers.

KEY BUSINESS DRIVERS

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Vision

Strategy

Objectives

CSF's KPIs

Actions

KPI PLAN

1. Customers’

2. Employees’

3. Regulatory Changes

Key Performance Questions

(KPQs) are an API innovation in corporate performance management. KPQ is a management question that captures exactly what managers need to know when

it comes to each of their strategic objectives. KPQs are designed to raise the most important questions and trigger a search for the

answers

PRESENT KPIS GRAPHICALLY

Inbound Calls

Outbound Calls

Total Calls

Answered Calls

Missed Calls

0 500 1000 1500 2000 2500 3000 3500 4000 4500

2284

505

4223

2134

102

ProSchools - PortlandProSchools - Portland

5

KPI PLAN

Inbound TT Outboundtt Total Talk Time

Allen Plummer(5)

0.00252314814814815 0.00246527777777778 0.485219907407407

Crystal Drake (5)

0.00153935185185185 0 0.339907407407407

Rosemary Pfonnes(5)

0.0024537037037037 0.0015162037037037 0.539525462962963

Valerie Munkres(3)

0.00202546296296296 0.00142361111111111 0.228587962962963

5%

25%

45%

65%

85%

Talk TimesTo

tal T

alk

Tim

e

1. Monitor vital areas

Track important indicators that will give your insight into the direction that your company is headed. The following indicators can help you monitor and control the profitability and cash flow of your business. Add other indicators that relate to your business.

SALES

Renewals and Returning Students

Campaign Sources

Customer Service Response Resolution

2. Identify key drivers

•What should the entity measure besides financial results?•A framework for performance information•What makes a good performance measure?•What is a KPI?•What are Key Performance Questions?•Designing KPIs to achieve excellence

SALES

KPIs for sales can include the following:

Enquiry levels

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KPI PLAN

Enquiry levels, such as the number of quotes given, will give your insight into which marketing campaigns work best.

Sales numbers

Examine factors like which product categories are selling well, achievements of each person, or the change in our conversion rates (ratio of leads to sales).

Service The process we move through to perform & deliver to achieve excellence

KPIs for service can include the following:

Essential Concepts

Service is the satisfaction or dissatisfaction of displayed behavior and capabilities

CommunicationClearly identifying information to convey, transmit knowledge, thought, or feeling satisfactorily received & understood

3. Choose performance indicators

Focus on a handful of indicators:

Performance and progress of business: These indicators are tracked by looking at such factors as increased sales, and higher call volume, and talking duration.

Measurable factors: KPIs that can be measured and monitored on a regular basis are the most effective.

Actionable items: A KPI must have a clear action, such as improved employee retention or product performance.

Framework the Objective~

A well balanced performance system will facilitate 3 main objectives:

•Learning & Empowerment

•Better decision making

•Improved organizational performance

Focused: on the organization’s aims and objective Appropriate: to, and useful for, the stakeholders likely to use it Balanced: giving a picture of what the organization is doing, covering all significant areas

of work

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KPI PLAN

Moving From Process to Outcomes

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KPI PLAN

4. Present indicators

KPIs clearly illustrate how our goals will improve our strategic standings and propel us forward with success. Issues to consider when developing KPIs include:

A Key Performance Indicator (KPI) is a measureable value that demonstrates the effectiveness of a business process at contributing to the attainment of key business objectives. By monitoring the right KPIs and business metrics, you gain valuable insight into the performance of your business and, more importantly, gain the strategic awareness you need to make the right decision at the right time. Use these KPI examples and templates to cultivate a data-driven culture within your organization.

PROPOSAL

RED LIGHTS

Average % Abandoned

9

Call Volume

Talk Time

0-2% Green

2-5% Yellow

5% + Red