{"id":6054,"date":"2023-10-23T18:55:29","date_gmt":"2023-10-23T18:55:29","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=6054"},"modified":"2023-10-23T18:55:29","modified_gmt":"2023-10-23T18:55:29","slug":"creating-a-metrics-hierarchy-and-implementing-joint-accountability","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2023\/10\/creating-a-metrics-hierarchy-and-implementing-joint-accountability\/","title":{"rendered":"Creating a Metrics Hierarchy and Implementing Joint Accountability"},"content":{"rendered":"

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

Shared Services and Global Business Service organizations achieve success by being experts in defining standard global processes where exceptions and deviations are understood and resolved quickly so that deliverables for low cost, efficient processes, with high customer satisfaction are consistently achieved.\u00a0 Having a robust framework for measurement is critical.\u00a0 The most advanced companies will have a range of measurements to meet the needs of difference audiences, with many of the measurements supported by a robust set of process maps and standard operating procedures.<\/p>\n

Company Experiences<\/strong><\/p>\n

A Peercast discussion in Peeriosity\u2019s Global Shared Services research area featured a global company with over $5B in annual revenue discussing their approach to creating a metrics hierarchy and implementing a process for Joint Accountability with internal stakeholders.<\/p>\n

The company\u2019s performance metrics hierarchy stratifies layers of measurement into three categories to meet different objectives and audiences.\u00a0 1) Detailed operational metrics for Global Business Services processes provide insight for GBS leaders, managers, and individual contributors to the heath of GBS processes.\u00a0 Types of operational metrics include turnaround times, quality checks, capacity utilization, and backlogs, with measurement taking place daily, weekly, or monthly as required.\u00a0 2) Joint Accountability Agreements provide insight for Business Unit and Functional Leadership to the shared accountability for performance by Shared Services and business partners, using defined shared success measures, delivered on a monthly or quarterly basis ad needed.\u00a0 3) Balanced Scorecard metrics for senior leaders are delivered quarterly across categories including Financial (budget), Operations (efficiency, quality), Customer (satisfaction) and Organization (engagement).<\/p>\n

Much of the Peercast discussion focused on the importance of Joint Accountability Agreements which define the partnership \u00a0between internal customers and GBS, with details about requirements for shared ownership of problem analysis and solutions.\u00a0\u00a0 A supporting infrastructure of documentation to these agreements include detailed process maps that define process steps, handoffs, and controls; standard operating procedures that define work steps; and finally, the operational metric dashboards that detail performance by process area.<\/p>\n

For more details about their experience, Peeriosity-100 members are encouraged to review the full presentation and listen to the Peercast recording in the Global Business Services research area.\u00a0<\/strong><\/p>\n

Polling Results Review<\/strong><\/p>\n

To support the Peercast, a poll was created to understand the approach Peeriosity-100 members take to performance reporting for key stakeholders and internal customers.<\/p>\n

The first poll question asked about the type of performance reporting that is utilized. \u00a0The results indicate that 29% of member companies use a balanced scorecard approach that provides a mixture of financial and non-financial measures, and 50% use a formal dashboard that provides a mix of measures but isn\u2019t as robust as a balanced scorecard.\u00a0 Here are the details:<\/p>\n

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The second poll question asked about how often the performance reporting package as reviewed or modified for the type of information presented as key metrics and the format used for delivery and layout.\u00a0 While there isn\u2019t likely a silver bullet for how often, reviewing what is measured and why on a regular basis is critical to ensuring that the measurement process is working and meeting the needs of internal and external customers, and the various stakeholders.<\/p>\n

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Here are some of the comments from Peeriosity-100 members:<\/p>\n