#3 Measurements - Defining Targets - Service Metrics

Hello Servicers,

Yet another day in the midst of so many things and here we are surrounded by 'service facts and impacts' in our lives.Not bad though! What do you say?

Today, we shall consolidate thoughts on -"How to define targets?"

Well! many theories are floating around, but the most preferred, popular and the worst found is -

'Someone asked this to be the target'

I mean seriously, are u kiddin' me!, people operate on target because someone asked and not on a definitive goal which would reflect real work and performance.

So what do we do to decide on a competitive target?
As I normally elude-to and not a surprise anymore :),"use commonsense and basics" 

A right target?

1. Represents 'all work performance' when measured against it.
2. Not too far from the real performance and 'realistic to achieve'.
3. Competitive to similar environment 'benchmarks and trends'.

Stages and steps to define target:

Stage 1- For new initiation of any service -

• Study benchmarks and assign realistic goals to key service segments (refer to previous blog)
• Agree goals while contracting - 'agreement of service' with customers.
• Agree on 'exceptions and variations' tolerance from the constants while contracting.
• Stick to deliver on:
• agreed target for 'measure of success'
• 'exceptions and variations tolerance' for 'adverse measure'(Simple Service Sutra -3)

Stage 2- Already in service -

1. Understand current performance levels:
•  Collect performance and take mean of a normally distributed data.
•  Collect performance and take median of a multi-modal data
•  Collect performance and take mode of population for skewed data.
2. Set-up a tolerance range of acceptance from current performance level i.e (+/-10% from the current performance level):
• Can refer to minimum and maximum range of data distribution.
• Can study benchmarks of similar services in the market and define.
• Stick to initial agreement with customer and define range for gap fulfilment, if any for over or under-performance.
3. Define target:
• Define a target around defined tolerance range 'maximum' for optimum and aspiring performance.For example :
• Current Performance Mean - 75%
• Defined Tolerance Range - +/-10 %
• Tolerance Range Maximum = 75+10 = 85%
• Target can be >= 85%
4. Other benefits of defining 'tolerance range': 
• Population below tolerant performance levels i.e 75-10 = 65% can be mentored for poor performance.
• Population within tolerant performance zone in and around the mean i.e 65% -85% can be corrected for under-performing and over-performing respectively.

"Imagine when we set-up goals for our children because we feel it to be right careers for them! How about they themselves doing the life-maths and come up proposing best for them.What can happen worse - 'A mistake!'- which everyone does and so they also have their rightful kitty to learn and correct"- Food for progressive thinking ,until we meet next.

Cheers!

Sunanda

#2 Measurements - Service Metrics - Challenges faced and deriving of structure

Hello Servicers ,

It's raining in Mumbai like never before and here I am - still stuck in your love :)

Continuing from previous discussions on 'defining measures', it is also a necessity to establish 'metric','method' and 'target' respectively.

Today we shall be developing metrics.Let's begin with few challenges and situations which we encounter in servicing entities of today.

1.CEO Syndrome - 

Imagine a CEO visit and a routine interaction on addressing few 'priorities' or 'highs and lows'
Suddenly,everyone and believe me every single one in the organisation will establish those areas as their priorities to perform on.
Poor CEO's - they were just doing their job:)

• If it were around Costs - Org wide it will sound , feel and smell like - Cost ! Cost! Cost!
• and God forbid if it is Customer - They shall forget their deity and Customer will be the only lord to be worshiped thereafter against all odds :)
• Another favorite is Quality - If they don't have 'one' as an issue - will create the means of establishing errors and showing the improvement in Quality. "After all - CEO Focus :)"

Don't kill me for it to be sounding so cynical , remember I have always been one of you :)

2. Leadership Change -

It is very common practice across companies on experimenting with new leaders in top management (Ahhh! we are bored,let's find a new fame).Every leader comes with a new flavor of the market and everything else existed before becomes too conventional or obsolete!

I can feel your tears :)

3. It's not my 'Job' -

Such a regular practice when people operate on services.Very curios to ask something - when any of our family member come to seek help, do we often react saying "I am not concerned , go elsewhere" - may be not ! and of-course least we provide a chance to them to be heard and then express,if any.

But not with office colleagues-"Why would we even care ,when come to office for earning 'salary':)"

Organisation hires thinking that you will be of - help ,support and skill to deliver and never knew will operate only for salary !

So, how do we deal with above situations ?- Too simple - keep focus on the right thing to do ! 

• What we wish to do ? - Define Metrics
• Where to define Metrics ? - Basis framework which we established in previous edition (pl refer to my previous blog - https://www.simpleservicesutras.com/2019/07/measuring-service-how-to-establish.html (Service ,Organisation, Product, Customer, Money, People)

Simple Service Sutra - 3

Define metric "not only for 'Success' but also for 'Adverse' "to keep mitigating for continual improvement.

Let us take one segment of 'Customer' as an example to proceed and define :
Measure of success - Primary Metric
Counter Measure - Adverse Metric

Now , our previous framework will progress to something like below matrix and accordingly can be built for other segments -

Note: While building if there are metrics which are appearing more than once across different service attributes is perfectly fine and help build interrelationships and interdependence at later analytics stage e.g. Customer Satisfaction can be part of 'Customer' as well as 'Organisation' segment - as it appears as 'success measure' of one and 'counter measure' of another.

Don't you think, it is enough for today - Even I thought so :).
Stay tuned!!! and we shall be crafting targets in the upcoming edition. Hope above helped on structured process for deriving relevant metrics.

When we establish our own company, shop or business then do we look upto others to define our success boundaries? If the answer is 'not NO' then it's an invention - rush and patent the wise cause :) We do not depend on others to define it for our own, then why do we treat our organisation any different ?

" Win Win - treat organisation as 'your owned' while defining measures, it simplifies your success as well as the company's"- Food for progressive thinking until we meet next!

Cheers!

Sunanda

#1 Measurements - Measuring Service - How to establish measurement system from scratch?

Hello Servicers,

If you have been to my previous blogs and already understand few basic "Sutras" on what could be defined and described as "Service", then today will be more understandable and relevant.

Have you encountered a situation of hundreds of metrics revolving around in your organisation to measure thousand of things !!! - OH YESSSS ! Don't worry, I can certainly relate with you :).
Even bests of the organisations are still running with this weird fashion from ages.

Let us first understand , what needs to be measured ?

• Service
• Organisation
• Product
• Customer
• Money
• People

Above sounds familiar :)
Yes it is sequential and hence it is of benefit  to follow and visit my previous blogs.

Just to rephrase,"Effective Service" is an outcome of handling and managing proportions of above.

Firstly, need of measurements must be established to further derive on ''drivers and levers''  as  applicable i.e.

What is desired by the Customer ?

1. It should be delivered Timely -"Timeliness"
2. It should be delivered without errors - "Quality"
3. It should be delivered within agreed cost - "Cost of service"
4. Must be heard and provided with resolution - "Complaints"

What Organisation expects?

1. Maximum and consistent service  delivery - "Volumes/Business"
2. Earning must be optimum - "Payment Per Service"
3. First Time right execution and no wastage in operating - "Process Efficiency"
4. Customer must be happy - "Customer Satisfaction"

What is expected of a Product ?

1. Product marketing must reach relevant & competitive to updating markets - "Market Share"
2. Optimal product selling -  "Sales"
3. Product availability cost must be minimum - "Investment"
4. Product quality must be superior - "Product Quality"

What are few recommended measures to manage Money ?

1. Earnings org/process/operator make - Revenue
2. Payable attained from service delivery - Invoicing
3. Wastage of cost & revenue - Cost Of Poor Quality
4. Collected against payable  - Collection
5. Org/process/operators financial performance - EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) or Gross Margin

What are the suggestive measures for People performance?

1. How much org/process/operator available to get assigned to work ?- "Availability"
2. How much of available time"- org/process/operator operated ? - "Utilisation"
3. How occupied were org/process/operator in the available time ? - "Occupancy"
4. How much work org/process/operator able to process? - "Productivity"
5. Org/process/operator able to deliver right, complete and in time? - "Efficiency"
6. Org/process/operator optimally staffed ? - "Excess/Deficient Capacity"

So, if all of this have resonated until now - then below matrix may help putting up basic structure.

Let me know what do you think of above , hope will provide you step - by - step suggestive guidance to define any measurement system from scratch. As we move ahead , will deliberate into complex transactions processing and relative affecting measures. Next edition will focus on deep defining of metrics , benchmarks and descriptive formulas for respective measures. Stay Tuned !

" Our parents love is unconditional - As they say". In reality, they have been 'measuring' us from  birth and accordingly set their expectation fulfillment. So, actions have minimum surprises and accepted either ways, you see :)" - Food for progressive thinking until we meet next.

Cheers!
Sunanda

#2 Service - Service Catalogue - "Ingredients of Managing Service"

So let us begin with basic understanding on what all is required to cater to an effective 'Service'?

Before we move to specifics , let's think over it a little chronologically :

• Why are you doing service ? - Because you have a 'Product'.
• Who are you serving? - 'Customers' to make money.
• Where are you serving ? - In the name of your 'Organisation'
• What do you want to achieve - 'Money' at the end of it.
• How are you serving - With 'People' in specific job roles

If we consider "Effective Service" as our preferred recipe then key non-negotiable ingredients would be - Product , Customers , Organisation, Money and People. And of course we are free to add secret ingredients :)

SimpleServiceSutra - 1

"Our 'Job Role' defines minimum boundaries for effective Service Delivery".

It is important to understand that our recipe - 'Effective Service' is an outcome of right proportion & handling of key ingredients - Product , Customers , Organisation, Money and People.

Often we are confused and surrounded by following illusions :

Illusion : Customer is referred to the end client who provides business to organisation and perceived similarly across company.

Reality : We must understand who are we providing output of own 'job role' as a service. That recipient (representative / team) of my service should be my definition of customer.

Illusion: All employees generally relates to product as 'service offerings' of the organisation i.e.  IT , insurance , automotive etc.

Reality: Your 'Job Role' is the only product you can control and serve. i.e. accounts payable , booking , documentation etc.

 Effective Service = F(Job Role) Effective Management of Inputs from Upstream (Product) + Effective Delivery of output to Downstream(Customer)

In brief - we must master and perform well in our controllable delivery while keeping the larger context in mind towards Customer, Organisation and Money.

Should not stop to add, expand or suggest for better and outside of operating limits. However, would be referred more as bonus ('secret ingredients') and cannot be replaced with minimum required.

Imagine a world where everyone is fulfilling duties to the 'least' and 'at best' - then there will be no possibility left for uncertainty.

 "Some may say it is too idealistic and doesn't happen that way in real world."

However, to aspire maximisation and perfection, it is important to be known of assured right path. Minimises wastage :)

"When Lord Krishna have paved us the critical path to lead life , what could be the interest in exploring otherwise - if facts are repetitive and already proven".

-  Shortcuts never lasts. Food for progressive thinking until we meet next !

Cheers!
Sunanda

#1 Service - Managing Service - Is That So Complex ?

All these years have been trying to incorporate:

1. Simplicity to solve even utmost complex situations.
2. Common Sense and Logical Approach to bring back the basics.
3. Increased Risk Appetite & Experimenting.

Yes I am serious !

After doing all sort of  renowned specialized studies available in universe. Above 'obvious sounding' have helped most all the time :)

Have we ever given a thought that may be we are making our work too complex to operate on - or may be it is just a new gig for some "More Complexity - More Large and Mature It Reflects" !

Really !! My experience all these years have been finding out best remedies - "You may call it DIY for Managing Services" without appearing them to be - very difficult , time consuming , expensive or to be done only by experts.

• Why do we live and manage 'day to day' and always worried to let the present past without thinking of its due impact in future?
• Why do we deviate from larger picture and unknowingly become 'too transactional' while deep diving?
• Why do we need hierarchy and layers in the organisation to manage something so simple called as - 'Product'?
• Why such chaos all around when all needs to done by the person who is Managing Customer?

If above rings some bells then you are going to have lot of fun here.

Stay Tuned ! Tsunami of some interesting virgin information on your way.

Comment , like and suggest if this interests you. Will definitely incorporate :)

See you next soon

Cheers !
Sunanda