Key Performance Indicators (KPI)

Key Performance Indicators (KPI) Reports are used by businesses to try to understand how they are performing and whether they are achieving their goals and objectives.

For example, you have a requirement for customer telephone calls to be answered within 10 seconds and you may have a target of 95% of calls being answered within this time. Whether this is achievable and how quickly it can be achieved will obviously vary between businesses.

For any KPI, consistent data collection is essential. KPI's will usually be compared to previous weeks, months or years or compared to a target and if the method of collection or the method of calculation changes, the data will not be comparable.

To produce a KPI you must be able to measure and collect the information required. In the example above for instance, the telephone system may need to be upgraded to automate the process. Some information may be more readily available may get collected more frequentl if it is deemed to be more important.

Remember too that KPIs do not have to use numerical data. Although much of the data will be quantiies or percentages or values, other data is also valid such as RAG (Red, Amber & Green) reporting where an instant visual clue is given as to whether a target has been hit, missed or something in between. Text and pictures can also be put to good effect or used as examples when reviewing typical complaints or praises of service.

There needs to be a balance between the amount of effort required to collect information, the accuracy to which it is collected, the way it is presented and the use to which it is put. However, much of the process can often be automated with reports being generated on a regular basis with just a press of a button.

It is may be unnecessary for the main board to know how many miles per gallon a vehicle does on each and every journey but the daily/weekly/monthly cost of fuel used could be very useful. Similarly the transport manager may be interested to know an average mpg for each vehicle as a comparison over time to see if one vehicle or engine type performs better or worse than another.

Finally, think about how the KPIs will be presented. Excel is very popular for many types reports including KPI reports but Word, PowerPoint and web pages are alternatives. As with any report, consider the audience; what a department employee needs to see may be completely different or more detailed compared to what the directors need to know.

To summarise:
• Decide what you want to measure and why.
• Decide how the information is best presented.
• Decide how to collect the information and how often
• Present the KPIs in a suitable format
• Review the reports regularly to be sure they are being used effectively
• Go into greater detail only if necessary to achieve better understanding
• Do not change the collection or calculation methods. If possible use a new KPI or parallel run both KPIs to give a period of comparison and adjustment
• Remember that your KPIs may need to change as the business changes

Quarry View® Business Solutions can assist you to consider which KPIs would be most useful, how to collect the data and how to present it effectively. If you'd like to discuss any of this don't hesitate to contact us for a free initial consultation with no obligation.



Tags: Office Automation, VBA, Excel, Word, Access, Outlook, PowerPoint

Management Reports

Management reports (MI, BI or KPI reports) are a necessary requirement of today's businesses.

That does not mean the reports need to be boring and with careful use of layout, colour and using the appropriate Office application, reports can be transformed into a more useful tool.

Reports need to achieve 2 things:
1 . Highlight the most important and pertinent information so that it is easily found and understood.

2. Ensure all the required supporting information is available and summarised in a suitable format for the reader.


Report Creation

Reports can be created in a number of ways.

Templates are commonly used and information entered manually from other systems. This can be tedious but has the advantage of "sanity checking" the data before the report gets published provided the person filling in the data understands it.

Ad hoc reports are produced as and when required and may be a one-off. These need to be well understood by the designer.

Most reports can be automatically generated at least in part. This has the advantage of saving time and requiring less skill to produce a great output. Often the whole process can be automated with no human intervention required.

Excel Reports

Microsoft Excel is one of the most popular reporting applications and for very good reason. Excel is good with numbers and text and the formatting options mean an enormous range of layouts are possible.

In addition, Excel is easy to use and most people are familiar with it, even if they only use it for their expenses.

For more proficient users, Excel gives opportunity to use a report as a starting point for a more complex system of linked worksheets or workbooks for further analysis of the data.