What is the biggest challenge you face in driving key performance indicators in the right direction? Do you have a difficult time teaching your employees how they impact each data point so that as individual contributors they know what they need to do to improve? The first step for you as a leader is to understand what data is available to you. Then you need to able to analyze the data and be able to articulate the data to your team. Your Finance Leaders should be able to teach you what data is available and what the data means.
I have worked in the In-home Repair business for over 30 years in varying roles. Based off my experience the most exciting thing I’ve encountered has been watching improvement after employees have been taught what they can do to impact the outcomes. As a Leader, coaching should be one of your top priorities.
I am a believer that 99% of people come to work each day to do their best. If they are doing something wrong all they need is coaching to teach them how to do it right. This is one of the most important reasons you need access to data, you need to be able to analyze the data and you need to be able to articulate the data to your team. The most important thing to know is how each individual contributor impacts the data. Being able to show team members where they are performing compared to their peers is one thing but being able to teach them what to do to improve their impact to a data point is key. An example is call center cost. Many people think that this is a fixed cost and they can’t impact it, when in reality if you keep your clients informed it will lessen the number of calls into the call center, lowering your cost.
Below are the 3 key components of data that should be used to manage gaps in your business.
1. KPI Scorecard – every business has key performance indicators that they use to determine whether or not they are performing to their company’s expectation. It is important to be able to drill down from the company level, to the territory level, to the district level, to the team level and to the individual level for comparison and gap management.
2. Profit and Loss Statement – Partner with your finance team on goal setting, it is important that goals are set to attain the company’s expected financial outcome. Set goals for each team member and regularly provide feedback on where they are performing compared to those goals.
3. Business Reporting – reporting is usually the detail behind key performance indicators and accounts on your profit and loss statement. The detail is very important so that you can analyze, look for patterns, determine root cause and then use the data to coach team members.
Winners keep score. It is very important to identify your key performance indicators (KPIs) and to set goals that will ensure the company’s expected financial outcome. I have always found that if team members understand KPIs, know the goals and understand how they impact them they do their best to improve.
Below are some common KPIs in Field Service.
- Scheduled calls per day Productivity
- 1st time completes
- Customer satisfaction
- Next day availability
- Turn time
Below are some common data points in Field Service
- Labor revenue
- Parts revenue
- Labor cost
- Parts cost
- Labor and parts margin
- Vehicle cost
- Overhead cost
- Claims rejections and adjustments
- Insurance claims
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One thing that I found to be successful was to look at the data, determine top quartile, top third and top half performers. Taking that information and tying it to “what if” performance outcomes if all locations or all employees were performing at each. You will be amazed at what the performance could be if gaps are closed.
If you have interest in learning more about leveraging data to enhance your service team please download our Professional Services Playbook.