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New Frontiers in Business Intelligence

Nari Kannan

A Framework for Business Process Performance KPIs

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If you were to measure Key Performance Indicators (KPI)s for Business Processes, what would you measure? A Proper Framework approach ensures that you balance Efficiency Metrics with Effectiveness Metrics and also, you make it as comprehensive a set of metrics as possible.

Efficiency Metrics (How well are you doing things?) and Effectiveness Metrics (How well are you doing the Right Things?). Sometimes Efficiency Metrics go hand in had with Effectiveness Metrics and many times not.

In an Insurance Claims Settlement process, settling the claim qucikly achieves the Turn-Around Time (TAT) Efficiency Metric, customers are also very happy increasing the Customer Satisfaction Index (CSAT) Index, an Effectiveness Metric.

On the other hand, if the business process is Customer Support on the phone, the Efficiency Metric may ba Average Handle Time (AHT). Companies may try to keep this metric within a certain range. However, keeping calls shorter may affect the Customer Satisfaction Index (CSAT) metric the opposite way. Getting off the phone quickly withour resolving the problem fully will only make the customers less happy! In this case, the Efficiency Metric and Effectiveness metric may be oppoed to each other!

Here's a framework for determining what metrics may be of use for any business process. The framework can be quite comprehensive when considered under three main groups - People, Process and Techniology.

People Metrics are important, especillay in business processes where there is an inordinate proportion of manual activities - Like for for example Insurance Underwriting of Commercial Properties for eacmple. People metrics become even more important when business processes are outsourced.

Technology Metrics are also important, especially business processes that involve computer systems and application software. When customers can apply for Insurance online or file claims online or pay their annual road tax at the local Department of Motor Vehicles, availability of servers and response time become important metrics that may need to be monitored.

Process Metrics are the biggest group - They contain an equal number of Efficiency and Effectiveness Metrics.

A Framework approach to thinking about Business Process Metrics makes sure that you measure an as comprehensive set of metrics as possible.

This will also enable someone to include metrics that are complementary to each other as well those that are in conflict with each other.

It is the framework which changes with each new technology and not just the picture within the frame. - Marshall McLuhan

1 Comment

The graph represents the perfect process of quantitative and qualitative measurement. Not sure, however what do you mean by absenteeism.

Nari Kannan's blog explores how new approaches to business intelligence can help organizations improve the performance of business processes--whether these processes are creative or operational, internally-focused or customer-facing, intra-departmental or across functions.

Nari Kannan

Nari Kannan started and serves as the CEO of appsparq, a Mobile Applications development company based in Louisville, KY with offices in Singapore and India. Nari has over two decades of experience in computer systems development, translating product and service strategy into meaningful technology solutions, and both people and product development. Prior to this, he has served as both Chief Technology Officer and Vice President- Engineering in six successful startups, two of which he co-founded. He has proven experience in building companies, engineering teams, and software solutions from scratch in the United States and India. Prior to this, Nari started Ajira Technologies, Inc., in Pleasanton, CA, where he served as Chief Executive Officer for more than six years. While at Ajira, Nari was instrumental in developing service process management solutions that modeled, monitored, and analyzed business processes, initially targeting the Business Process Outsourcing (BPO), Telecom, and Banking verticals in India, and Finance, Insurance, and Healthcare verticals in the United States. Prior to this, he served as VP-Engineering at Ensenda, an ASP for local delivery services. He also served variously as Chief Technology Officer or VP-Engineering at other Bay-Area venture funded startups such as Kadiri and Ensera. He began his career at Digital Equipment Corporation as a Senior Software Engineer. Nari has a long involvement with Customer Support and other customer facing processes. At Digital Equipment Corporation he was involved with their 1800 person customer support center in Colorado Springs, Colorado. He was tasked with coming up with innovative tools to help customer support people do their jobs better. He holds a U.S patent for a software invention that automatically redirected email requests for customer support to the right group by digesting the contents of the request and guessing at which software or hardware support group is best equipped to handle it. At Ensera, he led a 45 person team in developing an internet based ASP service for handling auto insurance claims, coordinating information flow between end-customers, Insurance companies, Repair shops and Parts suppliers. Ensera was acquired by Mitchell Corporation in San Diego. Nari holds a B.S. degree in Physics from Loyola College, and an M.B.A degree from the University of Madras in Madras, India. He graduated with a M.S. degree in Computer Science from the University of Massachusetts at Amherst in 1985. Contact Information: Nari Kannan. Email: nari@appsparq.com Mobile: 925 353 0197. Website: www.appsparq.com View more .


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