{"id":4403,"date":"2021-08-26T21:14:16","date_gmt":"2021-08-26T21:14:16","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=4403"},"modified":"2022-08-23T16:10:32","modified_gmt":"2022-08-23T16:10:32","slug":"whats-measured-improves-the-importance-of-formal-kpis","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2021\/08\/whats-measured-improves-the-importance-of-formal-kpis\/","title":{"rendered":"\u201cWhat\u2019s Measured Improves\u201d \u2013 the Importance of Formal KPI\u2019s"},"content":{"rendered":"\r\n

Introduction<\/strong><\/p>\r\n\r\n\r\n\r\n

While individual process areas often have very detailed performance measurements related to cost, productivity, quality, and customer service, many times the overall Shared Services operation struggle to present its overall results in a concise and effective manner.\u00a0 The challenge for any Shared Services or Global Business Services organization is to develop and maintain a cohesive reporting package that meets both the needs of the Shared Services organization and its key customers and remains relevant as the business evolves.<\/p>\r\n\r\n\r\n\r\n

It has been clearly demonstrated that having effective Key Performance Indicators (KPIs<\/a>) for processes within shared services<\/a> has many benefits including process management, process improvement, and the ability to communicate clearly with customers.<\/p>\r\n\r\n\r\n\r\n

iPollingTM<\/sup> Results Review<\/strong><\/p>\r\n\r\n\r\n\r\n

Peeriosity\u2019s iPollingTM<\/sup> was used to learn more about Peeriosity member companies\u2019 emphasis on formal KPIs and the overall satisfaction members have with the KPIs that are in place.\u00a0 The results suggest that effective KPIs are a high priority<\/a>, with all companies reporting that they have completed a major review and update of their KPIs within the past two years, and 57% reporting that a major review and update has taken place within the past six months.\u00a0 Here are the details:<\/p>\r\n\r\n\r\n\r\n

\"poll<\/figure>\r\n\r\n\r\n\r\n

The frequency for completing a major review and update makes more sense when you look at the overall satisfaction Peeriosity member companies have with their KPIs.\u00a0 51% indicate they are \u201csatisfied \u2013 they are a help but we continue to work on them to try and increase the benefit\u201d, with 11% indicating that they are \u201cvery satisfied\u201d.\u00a0 At the other end of the spectrum, 21% indicate that they have \u201climited satisfaction \u2013 we have metrics but benefits are unclear or limited\u201d.\u00a0<\/p>\r\n\r\n\r\n\r\n

When you look more closely to match who is reviewing KPIs more quickly, not surprisingly, companies with limited satisfaction are the most likely to have a longer period of time since their last major review and update, and companies that are the most satisfied with their formal KPI\u2019s\/metrics are more likely to have reviewed and updated in the last 6 months by a ratio of 5:1.\u00a0<\/p>\r\n\r\n\r\n\r\n

\"poll<\/figure>\r\n\r\n\r\n\r\n

Here are some of the comments from members:<\/p>\r\n\r\n\r\n\r\n