What Performance Metrics are Right for my Business? (Part Two of Four)
Today I will build on my previous post: What Performance Metrics are Right for my Business? (Part One of Four).
We've seen that when looking at an organisation and the return on investment in Performance Management there are typically 3 tiers that a company will transition through. In this post I’d like to discuss the 1st tier: Improving Efficiency.
In the first tier the focus is on improving the efficiency of your employees by removing common barriers to their day to day activities and freeing up time to focus on your customers and receive the coaching they require to improve their own performance. Managers are the key to this improvement and understanding whether they are putting time into improving employee performance or instead are spending that time on reporting, data capture or dispute management. When choosing metrics and KPI's to measure performance in this tier it is imperative you give yourself a clear understanding of the following:
1. How much is every contact with the customer costing you? Metric: Cost Per Contact
2. How much time are your managers spending coaching? Metric: Coaching Time
3. How often do your managers coach your frontline staff? Metric: Coaching Cadence
4. Can you identify whether employees are using best practice in their calls?
Metric: Quality Management (Call Monitoring)
Getting the basic coaching principles right in this tier is crucial and your reporting should be geared towards measuring the correlation between coaching and performance, for example does AHT (employee metric) reduce when Coaching Cadence (manager metric) increases?
In my next post, I will discuss tier 2: Focusing on your customers.
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Author: James Burr
James Burr is the Business Consulting Manager with Merced Systems. He has over 7 years experience implementing Sales Performance Management systems in a broad range of industries including Telco, Finance and Automotive. He can be reached at james.burr@mercedsystems.com