KPIs for engagement, efficiency and success
How do you work with your KPIs today? Are they clear, are they followed up regularly and is it clear how they drive you forward in line with set goals and strategies?
To make informed decisions and continuously improve its processes and demonstrate value creation, an organization needs to carefully measure its results and analyse its performance. The same applies to changing the organization's strategy, operations or resource management.
By measuring the right Key Performance Indicators (KPIs ) in case management systems, companies can not only improve their IT services(ITSM), but also optimize the Employee Experience(EX) and Customer Experience(CX). This not only provides a better experience for employees and customers, but also strengthens the performance and success of the entire organization.
What are KPIs and why are they important?
Key Performance Indicator (KPI) is a measurable value that has a specific purpose, is linked to objectives and goal achievement. A KPI is measured continuously over time, is specific and refers to a certain period of time.
When it comes to case management, KPIs play a critical role in ensuring that both IT services (ITSM), employee experience (EX) and customer experience (CX) meet expectations to create a smooth and positive experience for all concerned.
KPIs are used to:
Engage - get everyone working towards the same goal
Monitoring - following up on the progress of the activity
Learning - experimenting, measuring and adjusting
Reward - linking targets and incentive programs
For a KPI to be important and useful , it must be measurable and have a significant impact on the end result of what you want to achieve. The business should be well aware that it exists, why it exists, how it is measured and where to track its progress.
How to develop the right KPIs?
Each organization needs to tailor its own measurement strategies. There is no one-size-fits-all template. KPIs should be used to measure the most important activities for your organization. Selecting and narrowing down the most appropriate KPIs will steer your organization in the desired direction - whether it's driving change or ensuring that your organization stays within set limits.
A KPI should be SMART(Specific, Measurable, Achievable, Relevant and Timely). Also consider - at a fairly early stage - how easy each KPI is to control and influence[SE1].
It is difficult to define what are the "right" KPIs, as it depends on the nature of your business and what you want to achieve. It is important to have a mix of different types of KPIs to understand the big picture.
Input (strategic) - Measures resources used to start a process, factors that influence the production flow. Helps to understand if we have sufficient resources.
Process or activity measure (operational/functional ) - Focuses on the efficiency, quality or consistency of specific processes used to produce. Helps to identify bottlenecks.
Output (operational/functional) - Performance measure that indicates how much work is done and defines and measures what is produced.
Results (operational/functional) - Focuses on outputs or impacts. What you ultimately want to influence.
The following very simple examples can be used to illustrate different types of KPIs:
You have agents, number of incidents and time(input).
You manage the incidents and measure how effective you are at this based on resources such as agents, knowledge and your IT environment(process).
You have resolved the incidents and measure the number of cases closed(output), but the outcome is something you cannot directly influence: how good a service the customer feels they have received(outcome).
The most important thing to measure is the result. If your colleague thinks you have provided good service, you are doing something right, but you need a mix of KPIs to understand and improve performance. Operational/functional KPIs support the outcome and therefore often become underlying KPIs.
Visualize
By carefully defining and tracking relevant KPIs for ITSM, Employee Experience and Customer Experience companies and organizations can optimize their service to deliver better results on all fronts. Keeping track of these metrics not only provides insights into how to improve internal processes and customer service, but also helps create a culture of continuous improvement that benefits both employees and customers.
A single KPI does not communicate deep insights. By carefully combining, organizing and presenting the right KPIs in a dashboard, you create a picture of the status of your business. The design of your dashboard must clearly visualize what is important and should be prioritized. The information should be up-to-date and tailored to who should follow it.
Using data-driven insights from KPIs to improve processes, as well as enhance both employee and customer experience, businesses can build stronger relationships, reduce costs and drive long-term success.
ITSM (IT Service Management) - 11 Key KPIs
ITSM is about managing and delivering IT services. These KPIs are about ensuring that IT teams are efficient, that services are available and that support cases are handled quickly and correctly.
First Response Time (FRT) - A fast first response can improve the user experience and contribute to higher customer satisfaction.
First Call Resolution Rate (FCR) - A high FCR is a sign that the support team has the skills and resources to resolve users' issues quickly.
Average Response Time (AFRT) - A fast first response gives a good impression that IT support is available and committed.
Mean Time to Resolve (MTTR ) - Shorter resolution times mean users get help quickly, reducing frustration and increasing satisfaction.
Incident Reopen Rate (IRR ) - Helps identify long-term problems or deficiencies in the infrastructure. If the same problem is repeated several times, it may indicate that a deeper solution is needed, rather than just treating the symptoms.
SLA Compliance Rate - Keeping these timeframes is important to maintain the trust of users and other departments within the organization.
Change Success Rate (CSR) - Percentage of changes implemented without incidents.
Problem Resolution Time - Time to solve the root cause of problems.
Service Request Fulfillment Time - Average time to complete a service request.
Cost per Ticket (CPT ) - Cost of handling an incident or request.
Customer Satisfaction (CSAT) - Customer satisfaction surveys show whether users feel their problems are handled effectively.
EX (Employee Experience) - 7 Key KPIs
Employee experience(EX) is about how well employees feel and how efficiently they can perform their tasks, which in turn affects their productivity and engagement. Using KPIs to measure and improve EX through a case management system can create a more engaged and effective workforce.
Employee Satisfaction (ESAT) - Similar to CSAT, measures how satisfied employees are with their job and workplace.
Employee Net Promoter Score (eNPS ) - Measures how likely an employee is to recommend their employer.
Service Use and Availability - How often employees use IT services and how accessible they are are important factors in understanding whether employees are getting the help they need in a timely and reliable manner. Inaccessibility of services can lead to frustration and loss of productivity.
First Response Time for Employees (FRT) - This KPI measures how quickly the HR and IT support team responds to employee requests, which is crucial to maintaining a high level of employee satisfaction. The faster an employee receives help, the more engaged and productive they will be.
Employee engagement - This can be linked to how well they are supported by internal systems and teams. Having an effective case management system that quickly resolves issues and provides resources contributes to higher engagement.
Employee turnover - An indirect KPI for EX is employee turnover. If employees frequently leave the company, it could be a sign that they are not satisfied with the work environment or the tools they use. An effective case management system that makes life easier for employees can help reduce turnover.
System Adoption Rate - Indicates how well the system is integrated into the workflow, which affects productivity and efficiency. Low adoption may indicate low utility or poor user experience.
CX (Customer Experience) - 8 Key KPIs
Customer experience(CX) is key to building long-lasting relationships with customers and increasing their loyalty. A CX case management system must be fast, reliable and user-friendly to create positive customer experiences.
Net Promoter Score (NPS ) - NPS measures how likely customers are to recommend your business to a friend or colleague. It is an indicator of customer loyalty and can provide insights into how well case management contributes to creating positive customer experiences.
Customer Effort Score (CES) - Measures how easy it is for the customer to get help or solve a problem. A low effort score is a positive indicator of a smooth and efficient process that makes customers feel appreciated and understood.
Customer First Response Time (FRT) - Getting a quick response to an inquiry is crucial to the customer experience. A first response time KPI helps businesses keep track of how quickly they respond to customer queries or requests, which directly affects customer satisfaction.
Customer Lifetime Value (CLV) - CLV measures the total value a customer brings to the company over their lifetime. High CLV indicates that customers are satisfied and loyal. Efficient handling of customer issues, prompt service and personalized treatment can contribute to a higher CLV.
Churn Rate - The percentage of customers who stop using the company's service/product.
Customer Satisfaction (CSAT) - A traditional customer satisfaction metric that collects feedback via surveys after interactions, such as after an incident response or service request.
Average Resolution Time (ART) - The average time it takes to resolve a customer query is directly linked to customer satisfaction (CSAT) - the faster problems are resolved, the more satisfied customers are. Long resolution times can lead to frustration and churn.
Self-Service Success Rate - Enabling customers to solve their own problems via self-service increases customer satisfaction, reduces the burden on customer service, reduces support costs and improves the digital experience,