“What gets measured gets done.”
“You can’t get what you don’t measure.”
“An acre of performance is worth a whole world of promise.”
And, my personal favorite, “If It Matters, Measure It.”
As your company continues to grow, quantifiable data will become more and more important to owners, customers, and other stakeholders of the business. By measuring key performance indicators in all areas of your field service business now, you can count on more predictable results in the future.
What are KPIs?
Key Performance Indicators (KPIs) provide a means to quantify and measure business performance toward the attainment of organizational goals. Goals can vary from every industry and company. In the service industry, businesses may evaluate themselves on KPIs that measure customer satisfaction, technician performance, and operational efficiency.
No matter what KPIs your company chooses to measure, the most important factor is that the metrics align with organizational goals. What are you looking to accomplish in the next quarter, 6 months, or year?
Goals Drive KPIs
The goals you set will drive the performance metrics you choose. For example, if your goal is to improve technician performance, the metrics you measure could include average time to respond (AVR), Mean Time to Repair (MTTR), and number of calls or revenue generated per technician. A standard rule of thumb is to choose 4-5 KPIs. Otherwise, your metrics, at some point, will start to contradict each other.
KPIs Must Be Quantifiable
In addition to aligning metrics with organizational goals, it’s good to keep in mind that the chosen metrics are quantifiable. It would be extremely difficult to measure success if targets are not quantitative in nature, or associated to a number on a rating scale. For example, if you’re looking to improve customer service from good to great, it would be difficult to distinguish one level of satisfaction from the other. By associating the level of satisfaction with a number, such as 1-5, you can quickly determine the average customer satisfaction rate.
The ability to obtain these figures is another important factor when measuring KPIs. Most field service managers do not have time to review multiple pages or spreadsheets of data. Dashboards and reports that are systematic and automated provides easy to digest information that can be processed quickly so leaders can make informed business decisions. Larger organizations have the luxury of collaborating with IT to build customized dashboards and reports. Small to mid-sized field service companies can utilize field service management software that comes with built in reports. Since the company manages all aspects of the field service within the software, managers can quickly pull reports on open invoices, revenue generated by technician, and customer satisfaction surveys.
Gaining Employee Buy-In
None of the above matters if your team does not buy into the organizational goals. By incenting service technicians to complete individual goals, such as upselling, renewing service contracts, or completing a certain number of jobs per week, the business can ensure that all employees are working to meet the company’s overall goals. For example, a FieldLocate customer supplies weekly bonuses to his contractors when they surpass their regular job quota. This information is stored in FieldLocate so the manager can quickly run a job report to determine the bonus amount.
Does your organization measure KPIs? If so, which do you find most important for your business?
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