General Management @ Knowledge Zone



"Using Benchmarking Metrics to Uncover Best Practices"

by Emma Skogstad *

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Part - IV

Process Efficiency

Process efficiency gives insights into how well procedures and systems are supporting the operation. KPIs usually include error rate and forecast accuracy rate. Supporting indicators can focus on factors that influence process efficiency such as system downtime rate and the degree of process automation. Examples of measures follow:

  • Customer service/call centers
    • First-call resolution rate
    • Total resolution rate
  • Finance and accounting
    • Error exception rate
    • Payroll processing error rate
    • Invoice processing rate
  • Human resources
    • Turnover rate
    • Ratio of acceptance to hires
    • Ratio of acceptance to offers

Cycle Time

Cycle-time measurements deal with the duration required to complete a task. They are almost always expressed in units of time and include processing time and time to resolve customer inquiry. Supporting indicators can focus on factors that influence cycle time, such as the frequency of system breakdowns. Examples of measures follow:

  • Customer service/call centers
    • Average time to answer
    • Average time to resolve complaint
  • Finance and accounting
    • Average time to process an invoice
    • Days sales outstanding
  • Human resources
    • Average time to start (new employees)
    • Time to process applicants
    • Time to fill open positions

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