Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs)#

Process key performance indicators form the foundation for successful process improvements. Improvements should be supported by measurements. The required metrics are referred to as “Key Process Indicators” (KPIs).

The selection of KPIs influences the direction in which you guide your processes. A striking example is a Russian nail factory. The most crucial KPI was originally the number of nails produced per year. This led to the production of only thin wire pins, and larger nails were no longer available. Subsequently, the KPI was changed: the deciding factor was now the weight of the nails produced. Consequently, only carpentry nails were manufactured.

Allegra offers two types of KPIs:

  • Duration-based KPIs

  • Count-based KPIs

Duration-based KPIs measure the time between two events, e.g.,

  • Duration between receipt and first response to a complaint

  • Duration between receipt and answering a customer inquiry

Count-based KPIs measure the frequency of processes that meet certain criteria, for instance,

  • Number of complaints of a certain category

  • Number of root causes per category

  • Number of re-opened complaints

  • Number of tasks per employee to process

Implementation#

Allegra offers a series of dashboard tiles to represent KPIs. In addition, integration with MS Power BI offers extensive evaluation opportunities.

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