The services sector has traditionally been guided by a succession of rules, regulations and policies that, hopefully, make us all better at supporting our customers and the global business economy, as a whole. Many of these guidelines mirror other aspects of our lives as well, such as “Mind your Manners”, “Mind your Own Business” and – of course, “Mind the Gap!” However, no guideline may be as important to the services community as “Mind the Metrics” – and this is particularly well evidenced in the UK & EMEA geographies.
In fact, a special cut of the results from Strategies For Growth℠’s (SFG℠) 2014 Field Service Management Benchmark Survey reveal that, for the UK/EMEA services community, “developing/improving the metrics, or KPIs, used to measure Field Service Performance” is the number one strategic action currently being taken, as cited by nearly two-thirds (i.e., 64%) of survey respondents.
No other strategic actions are cited by as many as half of respondents, although “investing in mobile tools to support field technicians” rates fairly high at 49%, followed by “improving planning and forecasting with respect to field service operations” at just over one-third (i.e., 34%).
This is no surprise to Steve Alderson, Managing Director at Cognito, a leading, UK-based provider of mobile workforce management solutions to field service organisations, who corroborates that “This exactly reflects what we are hearing from the industry with service organisations facing intense pressure from competitors and rising customer expectations. These survey results confirm the strong sense in the market that getting a better understanding of field service metrics is critical to improving overall performance.”
The primary Key Performance Indicators (KPIs), or metrics, currently being used by a majority of UK/EMEA Field Services Organisations (FSOs) include:
- 78% Customer Satisfaction
- 75% Total Service Revenue/Turnover
- 68% Total Service Cost
- 53% Field Technician Utilisation (i.e., time spent performing repairs ÷ total hours)
- 53% Percent of Total Service Revenue under Service Level Agreement (SLA)
- 51% Service Revenue, as a Percent of Total Company Revenues
- 51% Service Revenue, per Field Technician
It is interesting to note, however, that most of the primary KPIs that were being used when many of us were just breaking into the business, while still important, are typically only used today by a minority of services organisations (i.e., on-site response time and first-time-fix-rate, each cited by 49%; SLA compliance and mean-time-to-repair/MTTR, each cited by 47%; and several others). However, what the data do not show is a diminution of importance among the old ‘tried and true’ KPIs, but, rather, an increased emphasis among those factors that are most influential today with respect to customer satisfaction, field tech utilisation and – oh, yes – the bottom line!
Most services industry analysts would also agree that you cannot – and should not – merely collect and tabulate the data – that is basically what a market research analyst firm does. Running a services organisation, however, is quite different, according to Alderson who suggests that, “Information without action is useless”. He continues, “As service organisations mature, and implement the next generation of mobile workforce management systems, sophisticated data gathering and analytical capabilities will be mandatory. However, the ability to act on the insights and knowledge gained, to improve field service performance, will be the key to thriving, not just surviving.”
But, why are KPIs so important to the overall well-being of the organisation? Because, for many, their service performance goals are simply not being met! For example, in the UK/EMEA services community:
- 32% of FSOs are not attaining at least 80% Customer Satisfaction; (UK/EMEA average is 82% Customer Satisfaction)
- 28% of FSOs are not attaining at least 80% SLA Compliance; (UK/EMEA average is 81% SLA Compliance)
- 26% of FSOs are not achieving at least 20% services profitability; (UK/EMEA average is 35% Services Profitability)
For these reasons alone, between a quarter and a third (or more) of the UK/EMEA FSOs probably find themselves in the need for new and/or upgraded mobile workforce management technologies to run their organisations. Then, of course, they’ll still need to measure their performance along the way. It’s definitely time to “Mind the Metrics!”
Complimentary Distribution of this Article has been made possible through Cognito:
Cognito is a leading provider of mobile workforce management solutions to field service organisations. For more than 20 years, we’ve been at the leading edge of innovation and best practice when it comes to helping our clients drive field force performance, exceed customer expectations and deliver consistently excellent service. Recently, Cognito has embraced a series of key innovations in mobile workforce management software, culminating in our flagship Fieldforce iQ solution. Cognito operates throughout Europe and North America. Our customers typically have mid-size to large mobile work forces ranging from 50-plus field workers to many thousands. For more information, please visit our Website at www.cognitoiQ.com, email us at info@cognitoiQ.com, or call +44 (0)1635 508200.