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Fundamental Concepts
Definition
Characteristics
Advantages
Classification
SECTION AGENDA
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Fundamentals of KPIs
Definition Characteristics & classification
Benefits of KPIs
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What are KPIs?
New customer visits
Average table occupancy
Complaints per head
Budget
Customer base increase
Key Measures
Trivial Measures
Linen costs
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What are KPIs?❑key performance indicators of progress towards a desirable outcome
Key performance indicators are a set of quantifiablemeasures that an organization uses to: • compare performance against the established
objectives and benchmarks, • constantly monitor whether the organization is
meeting the strategic and operational goals
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Examples of KPI
• service desk
• goal: achieve 0 service interruptions
Average duration of service interruptions
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Examples of KPI• Magazine
• goal: increase business
Unique subscribers added/ month
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Next Part
• Common Characteristics
Characteristics of KPIs• Quantifiable
• Can be interpreted using colour code• Current status
• Course of action
• Actions/ initiatives are Not KPIs
• Dashboards are not KPIs
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Next part
• Advantages
• Disadvantages
• Lesson Recap
Advantages
• Current/ past/ future insight
• Measure performance effectiveness
• Potential problems
• CA/ PA
• Effect of change
• Stay on track
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Disadvantages
• Tool against employees
• Can become sole focus
• Ineffective selection
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Let’s recap…
• KPIs are the key measures used to monitor whether you are on a right track or not…
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Classification of KPIs
Next Lesson
Importance of Classification
• Number of support ticket
• Average first response time
• Average resolution rate
• L1 resolution rate
• Test Automation
SLA for L1 support is 24 hours for 95% of ticket
• Choose right category• Good balance
Types of KPIs
Common Classification
• Industry
• Input/ Output
• Leading/ Lagging
• Process/ Product
• Finance
• Customer
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Leading and Lagging IndicatorsLEADING
LAGGING
Precursor of future state
Hard to measure
Easy to influence
Indicator of past performance
Easy to measure
Hard to influence
INPUT ORIENTED
OUTPUT ORIENTED
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Example- Leading & Lagging KPIs
Lagging Indicator• Weight in Kgs
LAGGING
Indicator of past performance
Easy to measure
Hard to influence
OUTPUT ORIENTED
Leading Indicator• Average carbs intake
• Average fat intake
LEADING
Precursor of future state
Hard to measure
Easy to influence
INPUT ORIENTED
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Leading and Lagging Indicatorsaverage fat intake per day
weight in kgs
• Goal: SLA of 24 hrs to solve 95% of P1 issues
• # P1 issues solved• Lagging indicator
• # P1 Issues addressed in first 2 hours, next and so on
• Average phase wise time taken
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Let’s recap…
• A balanced set of KPIs- Leading and lagging
• KPIs are the key measures used to monitor whether you are on a right track or not
• Ways to classify
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Way to go!!!
Videos , Articles, Templates, Quiz, Exercises, Big Store Case study
Foundation Direction setting
✓ Definition✓ Characteristics✓ Classification
✓ Vision✓ Mission ✓ Goals✓ Strategic Objectives
Finish and celebrate!
Strategic PlanningNext Lesson
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