Performance Metrics Business Process Review

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Performance MetricsBusiness Process Review

• Jo Oudshoorn
• 29th August 2006

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Why do we need to measure?Flowcharts

• Detailed flowchart of current process
• Current level of performance
• reports
• Anticipated/projected level of performance for
  each of the potential new/refined processes
• simulations
• Compare levels of improvement
• Decision tools for selecting recommending
  preferred options

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Why do we need to measure?BPR Processes

• Establish baseline performance
• Monitor post implementation performance
• Improved performance success
• No significant improvement review and refine
• Record of stable process
• Basis for continuous improvement

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Aircraft Analogy
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Why do we need to measure?Operational Performance

• Ongoing operational performance
• Departmental performance
• Higher level of activity that process level
• Provides a clear focal point for employees
• This is what we are supposed to be doing.
• Provides ongoing feedback to employees
• Provides opportunities to identify and rectify
  areas of poor performance

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BPR Processes What are we going to measure?

• Output
• Time
• Quality
• Quantity
• Other relevant
• Client satisfaction
• Output meets clients expectations
• Output is delivered in a timely manner

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Performance Metrics examples

• Time to complete process
• Ratio of completed transactions to total
  transactions in a certain timeframe
• (80 of transactions completed within 2 days)
• Error rates/Types of errors
• Number of corrections
• Number of adjustments
• Number of complaints
• Other
• Direct deposits/Total pay statements
• Check/Total Pay statements

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How are we going to measure?

• Banner reports Report web
• Access databases (to be developed)
• Operational data
• Completion time
• Classification of issues
• Number of transactions
• No employee or student data that would be covered
  by privacy legislation

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How are we going to measure?

• Collect data for the duration of BPR
• Baseline before
• During implementation
• Post implementation
• Shared directory easy access
• Spreadsheets
• Work sheets
• Charts
• Commentary

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Reporting timeframes

• Frequency of transactions proportional to
  frequency of reporting
• 1000 transactions per week
• Daily
• Weekly
• 10 transactions per month
• Monthly
• Quarterly

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Measurement Timeframes

• Banner reports
• Transaction based
• Less labor intensive
• More frequently as appropriate
• Access database
• Transaction based
• Slightly more labor intensive
• Manual collection
• Collection and collation of complaints/questions
• Very labor intensive

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Manual Collection

• 1st Stage
• Collect baseline data
• Description of all complaints/questions
• 1-2 weeks
• 2nd Stage
• Classify type of complaints/questions
• Template with classification types
• Check appropriate column
• Count number of issues by classification type
• 1-2 weeks
• 3rd Stage
• Develop a sampling technique to intermittently
  collect 2nd stage data
• Identify any critical times that a sampling
  approach may be warranted rather than just s
  random sample approach.

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Example Payroll ( 1st Stage)

• 41 Payroll enquiries
• Change in status
• Timing
• General payroll queries
• Payroll error queries
• Termination
• Employment

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Example Payroll (2nd Stage)
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Example Payroll (3rd Stage)

• Random sample
• Person
• Day
• Week
• Significant events
• Payroll day/week
• Before
• After
• Peak times
• Employment
• Departure

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Suggested Sampling

• Everybody collects all data on every x day (not
  the 5th day and not the 7th day)
• Objective
• Normally distributed sampling
• Days vary

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Ongoing Transaction Measurements
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Time Taken

• Between 2-5 hours
• What were the impacts, if any, that increased or
  decreased performance time
• Number of inputs number of employees
• Availability of staff
• Leave
• Other priorities

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General Guidelines

• ProcessModel flowcharts
• Detailed flowcharts of current process
• Detailed flowcharts of proposed processes
• Decision tool

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General Guidelines

• Establish performance metrics as soon as possible
• Gain approval from Oversight Committee
• Commence measuring
• Banner reports
• How much time to write reports
• Access database
• Preparation time
• Collection and classification

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General Guidelines

• Baseline data
• Chart time series
• Results over time
• Ensure that you review and document reasons
  behind extreme values
• Dont know is an option
• Use as input to redesign/modify
• Monitor during and after implementation

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General Guidelines

• If you really really cannot determine Performance
  Metrics for any of your processes
• Establish an outcome based assessment to provide
  a tool for the Oversight Committee to review
  whether the productivity improvement has been
  successful

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Summary

• Flowchart reports
• Current process
• Comparative new/improved processes
• Decision
• Performance Metrics
• Baseline now
• During implementation
• Post implementation
• Operational Performance Metrics (12 months)
• Stable Business as Usual environment
• Benchmarking (12 18 months)
• Organization wide comparison with peers