#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