What is Key Performance Indicator (KPI)? Key Performance Indicator definition
A Key Performance Indicator (KPI) is a critical indicator of a company’s progress in reaching its objectives. It is used by different organizations at different levels to evaluate each process that contributes to the progress of the company and its overall performance.
Critical indicators are categorized into two categories: Quantitative and Qualitative.
Quantitative is based on numerical standards of a goal while qualitative refers to the quality based on physical feelings, tastes, or opinions.
They are also measured into five types: Input, Process, Output, Outcome, and Project. Since this is an embodiment of a SMART goal, it measures its objectives and individual goals through the methodology and presents it in data form. Key Performance Indicator examples
Indicators may fall into different points of measurement: financial metrics, process metrics, customer metrics, and people metrics. For instance, assessment of net profit, cost of goods sold, and the tally of revenue vs. target falls on the financial metrics.
For people metrics, there’s the average number of employee turnover, training and seminars held for employees, and the number of open positions every quarter.
Process metrics, meanwhile, measure the number of processes it has for each role over the efficiency of these processes. KPI by industry
Regardless of whether you call them indicators or measures, KPIs are the most crucial benchmarks for the performance of an organization or industry. Using and measuring the right KPI is a key step in your business’ road to success.
Determining what indicator you want to utilize is the hardest part of performance management. It can be financial, customer-focused, process-focused, and many more.
KPIs vary between different sectors. These industry-specific measures will enable you to analyze your data to know your performance and create concrete decisions for your company.
The BPO sector also has a set of KPIs followed. Supervisors monitor and measure the performance of its employees through the average number of calls in a day, the percentage of call drop rates, call handling time, transfer rate, and the average of issues the agent resolved since the first call.
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What is Standard Operating Procedure (SOP)? What is a Standard Operating Procedure?
Standard Operating Procedure (SOP) is a set of instructions that explains how to do a critical process or workflow. Its purpose is to follow processes according to the standards of a company, organization, or industry. This helps to protect the employees, processes, and customers from errors throughout a normal workflow and create a safe work environment for the company.
SOPs are sometimes required for compliance with the industry regulations while some institutions suggest them as a company’s best practice. This is mostly used to maintain safety and efficiency in different departments such as production, sales and marketing, customer support, finance, and legal. Standard Operating Procedure template
For small teams and solopreneurs, SOPs are made through writing a checklist of routines that should be done. For bigger enterprises, thorough planning and taking note of processes are needed to ensure proper carrying of procedures. The integral parts of an SOP are the roles that will do the task, the frequency or how often will they do it, and the expected outcome or the deliverables in finishing the task.
SOPs in BPO companies have different standards. Their SOPs need to include compliance with administrative policies, metrics on performance management, and training and coaching sessions.
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