Key Performance Indicators are used in four main areas:
- Revenue Improvement
- Cost Reduction
- Process cycle-time improvement
- Increased customer satisfaction
Understanding KPI Performance Index: Satisfied, Tolerating and Frustrated Users:
> 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
The following are KPI examples from real-life scenarios. Using these KPIs will benefit in reducing overheads, errors, delays and costs.
Business Process KPIs: How to Measure and Improve Operational Performance
The following are KPI examples for gauging business process performance:
-Percentage of processes where completion falls within +/-ddd 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 processes
-Average time to complete task
-Sum of deviation of time (e.g. in days) against planned schedule of all active projects
SLA Key Performance Indicators: Metrics to Track Service Delivery Success
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 report
-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 calls 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)
-Cost 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 centre/ service desk within measurement period
-Number of complaints received within the measurement period
Service Quality KPIs: Essential Metrics for Measuring Customer Experience
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
Compliance KPIs: Tracking Regulatory and Service Compliance Performance
The following are KPI examples for Compliance performance:
-Average time lag between identification of external compliance issues and resolution
-Frequency (in days) of compliance service
Efficiency KPIs: Measuring Productivity and Reducing Operational Costs
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 alerts
-Customer ratings of service
-Number of customer complaints
-Number of process errors
-Number of human errors
-Time allocated for administration, management, training
Budget – Key Performance Indicators
-Sum of deviation in money of planned budget of projects
Budget Variance Percentage — The percentage difference between the planned budget and actual spend over a defined period, helping identify overspend or underspend trends early
Cost Per Transaction — The average cost incurred to complete a single business transaction or process, used to benchmark operational efficiency against financial targets
Return on Investment (ROI) — Measures the financial return generated relative to the cost invested in a project or service, helping justify budget allocation decisions
Budget Utilisation Rate — The percentage of the approved budget that has actually been spent within a given period, indicating whether resources are being deployed effectively
Forecasted vs Actual Expenditure — A comparison of projected spend against real costs at regular intervals (monthly or quarterly), allowing early corrective action before budget overruns occur
Cost Savings Achieved vs Target — Tracks the actual savings delivered against the savings target set at the start of the financial period, measuring the effectiveness of cost reduction initiatives
