In a previous article, I shared a tip on how to take a list of proposed KPIs and then prioritize that list using a multi-voting technique. Let’s assume we now have that set of KPIs that our organization agreed to use. We are happy with what we are measuring and we understand the business reason for each KPI. Next step: How do we set targets? For example, if you are measuring a particular TAT (turnaround time), what should the target be set to?  There are a number of ways organizations come up with this number, and unfortunately, most of them have no basis in reality. I suggest using real data from your case management system and calculate the Mean (average) of your historical data as an initial target. This is a great baseline starting point firmly anchored in reality.  If you just guess and targets are set too low (the team always exceeds them) then there is no point in having them. On the other hand, if the targets are arbitrarily set as “stretch goals” and are consistently missed then this is demoralizing to both individuals and teams and the credibility of the whole process is questioned.  Of course if you worked for someone like Leona Helmsley (“…only the little people pay taxes.”)  there would be no turnaround time quick enough and you would just be fired anyway.

This entry was posted on Thursday, November 15th, 2007 at 8:05 pm and is filed under Service Tools, Service Tips, Measuring Service, Accountability in Service. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.