Previous

Part - III

Cost Effectiveness

Cost effectiveness measures tell how well companies manage cost. Normalized data usually include cost per unit, cost as a percentage of revenue, cost as a percentage of total budget, and actual costs versus budgeted costs. Supporting indicators include cost components as a percentage of total and disaggregated cost per unit. Examples of measures follow:

• Customer service/call centers
  • Cost per call (or cost per minute)
  • Cost per reported complaint
• Finance and accounting
  • Cost per invoice
  • Cost per remittance
• Human resources
  • Cost per recruit
  • Benefits administration cost per employee

Staff Productivity

Measuring staff productivity provides insights into how much output each FTE has produced. KPIs include units of output (e.g., invoices and purchase orders) per FTE and workload (e.g., customers and general ledger) per FTE. Supporting indicators can focus on factors influencing staff productivity such as hours of training per FTE and employee tenure. Examples of measures follow:

• Customer service/call centers
  • Calls per representative
  • Resolved complaints per FTE
• Finance and accounting
  • Invoices processed per accounts payable FTE
  • Remittances processed per accounts receivable FTE
• Human resources
  • Total organization FTE per HR FTE
  • Requisitions per recruiter

Next

* Contributed by -
Emma Skogstad,
Courtesy: APQC (American Productivity & Quality Center)