September
9
2008
Mirror42 announces availability of its ondemand KPI measurement solution for IT. Mirror42 OnDemand works with Service Management products from all the leading IT Management software vendors to provide IT KPI reporting with dramatically reduced difficulty, cost, and resource requirements compared to other solutions. In addition to IT KPI measurement and sharing capabilities, Mirror42 OnDemand is the first KPI reporting solution to come with external benchmarking capabilities that allow users to compare performance with other companies.
Read the entire press release here.
August
22
2008
KPI Library News, August 22 2008
The best rated KPIs in the category ‘Human Resources’ as rated by our users are as follows:
- 1- [-] Compensation cost as % of revenue
- 2- [-] Employee efectiveness
- 3- [-] Average performance scores of departing employees
- 4- [-] Average time employees are in same job/function
- 5- [-] Turnover of new hire during first year
- 6- [3] Average number of training hours per employee
- 7- [-] Employer satisfaction rate
- 8- [1] Average time to recruit
- 9- [2] Job satisfaction (index)
- 10- [-] Workforce stabilitity
Within the brackets we have included the previous position of this rating. The following KPIs have dropped from this list
- Cost of office space per employee
- % of early retirements
- % of HR budget spent on training
- ROI of training
- % of new employees/candidates with a recruiting fee
- % of employees gone through training
- Staff turnover
If you would like to contribute KPIs or rate KPIs in the library, please join us.
July
25
2008
When defining a set of Key Performance Indicators (KPIs) to control performance, the most likely debate is probably around measuring KPIs. Usually those KPIs that are important to its stakeholders, are those KPIs that cannot (easily) be measured. Too often these “unmeasurable” KPIs are deferred, and are stacked in a wish list.
I would like to argue that we should put effort in trying to create or enhance an information architecture to enable measurement of KPIs instead of deferring them, as they are key to the insight in the performance of the organization. I see two common roads to travel:
- Enhance the information system by specifying the requirements from a KPI perspective.
In my experience it is most common that vendor software, or software build in-house, is not able to answer the most important questions, including providing priority KPI reports to its stakeholders. Information systems are usually build around automating business processes, and not for providing management information around those business processes. The goal is to specify the needs based on the KPI reporting needs, and adapt the systems.
- Use available information, although it does not exactly measure the KPI, to get at least a feel for its trend.
For example, a common KPI in Information Technology (and service support call centers) is “First line resolution” - percentage of calls that are solved by the first line support organization. Most information systems in use are not able to give the exact number, however, a workaround might be to look at time stamps of calls closed; arguing that calls closed fast most-likely have been solved without help of second and/or third line support employees. It does not give the exact number but when measuring periodically, the trend will give some (valuable) information.
These roads can be travelled in parallel. While waiting for changes in the underlying data architecture, one might want to choose to use less exact numbers to feel the trend.
This is a guest contribution by Erik Hoffmann, VP Products at Mirror42. Mirror42 delivers solutions that put IT Executives back in charge. Mirror42’s products and solutions are built around the three pillars of define, measure, improve. Define your goals as an IT executive, translate those into measurable metrics, start measuring and improve your organization to reach your goals.
July
14
2008
The report highlights that the ‘Best-in-Class’ enterprises put a greater significance on implemented / realised cost reduction savings and supplier performance (price, delivery, quality, service, etc.), whilst the Procurement ROI (savings / operating costs) and spend under management rank higher with ‘Average’ and ‘Laggards’.
Top 10 Procurement Key Performance Indicators (Source: Aberdeen Group, February 2008)
KPI (% Selected)
- Identified cost reduction savings (72%)
- % of total spend under management (64%)
- Cost avoidance (58%)
- Implemented / realized cost reduction savings (55%)
- Procurement ROI (savings / operating costs) (52%)
- % of suppliers = 80% of spend (51%)
- Supplier performance (price, delivery, quality, service, etc.) (49%)
- Procurement spend as % of revenue dollars (46%)
- Requisition, PO or invoice transaction volume (34%)
- Procurement spend per procurement employee (33%)
