#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