KPIs and Capability Statements
•
6 recomendaciones•3,339 vistas
Communicating value in business terms. The presentation for Localization World Dublin (June 6, 2014). Companion text at http://www.s-quid.it/en/kpi/
Recomendados
Más contenido relacionado
La actualidad más candente
La actualidad más candente (20)
Destacado
Similar a KPIs and Capability Statements
Similar a KPIs and Capability Statements (20)
Más de Luigi Muzii
Más de Luigi Muzii (20)
Último
Último (20)
KPIs and Capability Statements
- 1. KPIs andCapability Statements Communicating value in business terms
- 2. Money is #1 KPIs and Capability Statements
- 3. Same ingredients KPIs and Capability Statements
- 4. First postulate of (global) trade If I am selling to you, I speak your language. If I am buying, dann müssen Sie Deutsch sprechen. KPIs and Capability Statements
- 5. TheGuru’s Voice It is time for localization practitioners and suppliers to communicate their value in business terms. DonaldA. DePalma Establishing Key Performance Indicators for Localization Multilingual Magazine #57 Supplement ofJuly/August 2003 KPIs and Capability Statements
- 6. What gets measured gets done. KPIs and Capability Statements
- 7. Success factors KPIs and Capability Statements The issues or aspects of organizational performance that are important to perform well.
- 8. Critical success factors The issues or aspects of organizational performance that determine ongoing health, vitality, and wellbeing KPIs and Capability Statements
- 9. Areas of excellence The drivers to gaining and maintaining a competitive advantage and facilitating customer satisfaction KPIs and Capability Statements
- 10. CSF for the localization industry CSF Area Variable Price Production Cost of service Delivery Production Shipping capacity Project management Quality of service Production Investments Analytics Customer service Production Customer service Quality of service Maintenance costs Flexibility Vendors Production Peaks of demand Planning ability Financial independence Finance Production Sales Cash flow Image Staff Resource development Human capital KPIs and Capability Statements
- 11. Performance measurement • Comparison of actual returns against pre-specified benchmarks • Linked to critical success factors • Align daily activities to strategic goals. • Very subjective • Metrics to quantify performance KPIs and Capability Statements
- 12. Performance measures • Result Indicators (RI) • What done • Key Result Indicators (KRI) • How done • Performance Indicators (PI) • What to do • Key Performance Indicators (KPI) • What to do to increase performance dramatically KPIs and Capability Statements
- 13. Indicators • The speed a car is traveling is a result indicator • How economically the car is being driven is a performance indicator KPIs and Capability Statements
- 14. Key Performance Indicators • KPIs are metrics to measure the success of a business • Non-financial • Frequent • Acted on by senior management • Action required by staff • Tie responsibility down to a team • Have a significant impact • Encourage appropriate action KPIs and Capability Statements
- 15. KPI groups • Financial • Utilization of assets • Customer • Customer satisfaction • Marketing & sales • Targeting markets and customers • Operational processes • Timeliness, technology usage, relationships with stakeholders • Employee • Company culture, retention of staff, empowerment • Corporate social responsibility • Environment, community KPIs and Capability Statements
- 16. Data sources and tools • 20 to 30% of KPIs is never measured and/or available • Data must be collected from producers KPIs and Capability Statements
- 17. What to measure • Measure only what is needed to • Each measure should have a reason to exist, a linkage to a (critical) success factor KPIs and Capability Statements
- 18. Empowerment Give staff the ability to stop a production line without consultation when a quality defect is detected KPIs and Capability Statements
- 19. KPIs are not for cheating • Establishing a sound environment in which KPIs can operate and develop is crucial • Identify the critical success factors for the organization • Limit the number of measures • Provide training and support to teams to develop their performance measures • Allow for the necessary time • Record performance measures in a database • Constantly refine KPIs to maintain relevance KPIs and Capability Statements
- 20. Performance measures • Profits • Return on capital employed • Cash flow • Customer satisfaction • Customer profitability • Staff satisfaction • Operational efficiency KPIs and Capability Statements
- 21. Performance measures • Financial • Return on capital employed • Cash flow • Indirect expenses as a % of sales • Revenues/employee • Profits/employee • Customer • Number of new customers • Number of customer referrals • Average customer size • Customer loyalty • Profitable/Unprofitable customers • Complaints • Unresolved complaints (by person/team) • Marketing and sales • % of sales from cross-selling • % of successful tenders • % of sales closed as of proposals • % of orders canceled • Customer inquiries that have not been responded to KPIs and Capability Statements
- 22. Performance measures • Operational processes • Average time to resolve complaints • Percent of projects on time and on budget • Cost of quality corrections (rework, rejects, allowances, complaint processing costs) • Service expenses • Number of post-project reviews still outstanding • Time spent by team on quality improvement activities • Number of stock-outs • Manual-transaction-to-automated-electronic-transaction ratio • Number of progress payments due that have not yet been invoiced • Number of accounts payable invoices paid late • Employee • Number of staff • % of applicants as of staff • Recruitment rating • Number of recruits from staff referrals • Direct, indirect, and total labor costs (units/hour) • Number of staff trained • Number of strategic supply relationships • Empowerment index • Staff turnover • Length of service of staff who have left KPIs and Capability Statements
- 23. Customer satisfaction index KPIs and Capability Statements
- 24. Customer satisfaction • What should we measure to better manage the delivery of our products and services to you? • What is important to you? • What do you want to measure? KPIs and Capability Statements
- 25. The analysis Question Answer Why has customer satisfaction dropped? Customers do not appreciate our service Why do not customers appreciate our service? They can’t know the date of delivery Why can’t customers know the date of delivery? They receive conflicting answers Why do customers receive conflicting answers? Those who respond draw on different sources Why do those who respond draw on different sources? We do not have standard procedures for responding to customer inquiries KPIs and Capability Statements The issue The customer satisfaction index dropped 25% in the last year
- 26. LSPs like airlines • The timely arrival and departure of planes impacts nearly all the balanced scorecard perspectives of an airline • Delivering in full, on time, all the time KPIs and Capability Statements
- 27. What’s the buzz? Process Indicators Sales, Mktg, Mgmt,Admin Sales revenue Cost of sales and other indirect costs Fixed direct costs Other costs Management 2nd level Operating profit margin Production Value of nonconforming documents Number of nonconforming words Number of claims (nonconforming jobs) Training Number of training hours Corrective and preventive actions Number of corrective and preventive actions Customer satisfaction Founded claims Unfounded claims KPIs and Capability Statements Inside ISSELservice
- 28. How are we doing? • Measuring processes using relevant RIs and PIs • Continual improvement • Analyzing CSFs for applicability • Redefining KPIs to better address customers KPIs and Capability Statements
- 29. Speak up • New KPIs with new communication materials to display value in business terms KPIs and Capability Statements
- 30. KPIs in a showcase • EVA (EconomicValue Added) • A measure of real economic value a vendor adds to its business • Customer satisfaction • Customer satisfaction index • Corporate reputation • Customer retention rate • Quality index • DIFOT (Delivery In-Full, On-Time) rate • A measure of the vendor’s delivery reliability • FPY (First PassYield) • The percentage of units coming out of a process with no rework • Rework level • Percentage of units requiring rework • HCVA (Human CapitalValue Added) • A measure of the extent to which staff add value to the business KPIs and Capability Statements
- 31. From flyers to capability statements • 1 A5 page (two-sided) • Snap shot of your company • Introduction to your business • Client needs to be able to see what you do at a glance • Target audience • Highlights your companies unique features • Stick to the facts – Right, tight, and bright – KISS • Constant updating KPIs and Capability Statements
- 32. KPI Capability statement (front) KPIs and Capability Statements Logo Contact details Company profile Capabilities Facilities, equipment and resources Performance Main customers Finance Processes Sales Human Resources Areas of expertise, services, subject field(s) Technologies, certifications, accreditations, licenses, clearances, awards Vision, mission and value statements, competitive advantage (how the company distinguishes itself and why it is better positioned in the market against competitors) According to subject field
- 33. Capability statement (rear) KPIs and Capability Statements Logo Management policies Social responsibility statement Strategic partners Contact details Testimonials Management Financial policy, innovation strategies, data security plans Environmental practices, employee relations, community participation
- 34. Competitive strategy You do not merely want to be considered just the best of the best.You want to be considered the only ones who do what you do. KPIs and Capability Statements
- 35. References KPIs and Capability Statements
- 36. Thank you KPIs and Capability Statements info@s-quid.it