NEWS & KNOWLEDGE
Interesting things about the packaging industry, retailing dynamics, consumer trends and NOA’s insight.
KPI – what are they and are you using them?
A key performance Indicator (KPI) is a factor of reference that help businesses understand how well they are performing and if they are on track in relation to their strategic goals and objectives.
Improving performance starts with ascertaining what to measure. Companies that measure, manage and communicate their performance are inherently well placed. They understand how to improve their processes, reduce their costs, comply with regulatory requirements and stakeholder expectations and take advantage of new market opportunities.
KPIs can be used to establish financial performance, understanding and gauging the market, understand employee performance, measure and manage sustainability and to understand customer needs.
Here are a couple of examples:
A goal might be to be seen as the best call centre in your region, so one of the key performance indicators might be to reduce call-waiting times by 20% or to answer 80% of telephone calls within 30 seconds by 6 months’ time. By measuring this and then improving the process to enable this to happen will not only generate a better understanding of internal processes but will contribute to achieving the overall goal.
A goal might be to process more orders each week by reducing the cycle time from request to delivery. KPIs could be set up to measure the time taken at various stages of the order pipeline such as length of time an administrator takes to process an order, monitoring stock availability, production quantities etc or focusing on logistics.
To understand and evaluate the current position NOA are benchmarking processes (identifying the best practice) by which products and services are created and delivered. We are doing this by examining how others achieve their performance levels.
Please take a moment to answer our on-line poll on the NOA homepage to take part in our benchmarking process.
If you would like to find out more about Key Performance Indicators and how they will help you, please get in touch by contacting Neil:
Skype Name: noacoaching
Call: 01367 899262