How do you choose the best service performance indicators?

1 Align with your strategy

The first step is to align your service performance indicators with your service strategy and vision. What are the key outcomes and objectives that you want to achieve with your service operations? How do they support your overall business strategy and mission? How do they align with your customer expectations and needs? Your service performance indicators should reflect these aspects and help you track your progress and performance towards them.

2 Focus on the critical few

The second step is to focus on the critical few service performance indicators that matter the most for your service operations. You don't need to measure everything that can be measured, but only the ones that are relevant, meaningful, and actionable. Too many indicators can cause confusion, overload, and distraction. You should prioritize the indicators that are linked to your key service outcomes, customer satisfaction, and operational efficiency. A good rule of thumb is to have no more than five to seven indicators per service area or function.

3 Balance the perspectives

The third step is to balance the perspectives of your service performance indicators. You should have a mix of indicators that capture different dimensions of your service operations, such as quality, timeliness, cost, productivity, innovation, and sustainability. You should also have a balance of leading and lagging indicators, which measure the inputs and outputs of your service operations, respectively. Leading indicators are predictive and proactive, while lagging indicators are reactive and retrospective. For example, a leading indicator for service quality could be the number of service requests resolved on the first contact, while a lagging indicator could be the customer satisfaction score.

4 Define the targets and benchmarks

The fourth step is to define the targets and benchmarks for your service performance indicators. Targets are the desired levels of performance that you want to achieve or exceed with your service operations. Benchmarks are the reference points that you use to compare your performance with others or with yourself over time. You should set SMART (specific, measurable, achievable, relevant, and time-bound) targets and benchmarks for your service performance indicators, based on your service strategy, customer expectations, industry standards, and best practices.

5 Review and refine regularly

The fifth step is to review and refine your service performance indicators regularly. You should monitor and analyze your service performance indicators on a regular basis, such as monthly, quarterly, or annually, depending on the nature and frequency of your service operations. You should also communicate and report your service performance indicators to your stakeholders, such as customers, employees, managers, and partners, to ensure transparency, accountability, and feedback. You should also review and refine your service performance indicators periodically, such as every year or every two years, to ensure that they are still relevant, accurate, and useful for your service operations.

6 Learn and improve continuously

The sixth and final step is to learn and improve continuously from your service performance indicators. You should use your service performance indicators as a tool for learning and improvement, not as a tool for judgment and blame. You should identify and celebrate your strengths and achievements, as well as recognize and address your gaps and challenges. You should also use your service performance indicators to identify and implement improvement actions and initiatives, such as process improvement, service innovation, staff development, and customer engagement. You should also share and exchange your best practices and lessons learned with others, to foster a culture of service excellence and continuous improvement.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?