Business efficiency indicators

Published on 21/03/2024

Business efficiency indicators

Published on 21/03/2024
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Business efficiency indicators

Business efficiency indicators allow for the assessment of the degree of achievement and compliance with strategic objectives. Their utility depends on ensuring their reliability and consistency at the time of their definition and establishment, avoiding ambiguities.

It’s important to understand that their ultimate goal is to facilitate the analysis of the company’s situation and processes to provide accuracy and effectiveness in decision-making, based on an optimal understanding of the company’s reality.

The intelligence extracted from the metrics provided by the indicators offers essential visibility to know if the individual behaviors of the staff, or the work teams that make it up, are aligned with the strategic objectives of the organization, in terms of activity and productivity. It is necessary that the measurement ensures the obtaining of information with the necessary anticipation to be able to act and correct if necessary, factors such as:

  • The personal dedication of each employee.
  • The level of attention given to a task by each individual.
  • The degree of daily productivity in relation to the activity time of each person.

Moreover, these metrics play a much more important role, as they provide the possibility to investigate which are really the internal work processes that bring the most value within the organization. These are the ones that should be considered as priorities, the ones that should be better understood, and the ones to which the best resources should be allocated.

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The indicators that must be taken into account to access this data are:

  • The activity of each employee or workgroup: This indicator represents the daily time that elapses from the moment the person starts working until they finish their activity.
  • The productivity of each employee or workgroup: It evaluates the proportion of time dedicated to activities that the company considers productive, out of all the time that, within the established work schedule, is dedicated to the activity.
  • Time dedicated to applications: This business indicator shows not only an exhaustive list of all the applications used within an organization but also reflects the time that has been dedicated to each of them in particular.
  • The focus (average time per activity or application): It allows seeing the time in which one works with an application uninterruptedly, showing the pauses and the changes from one application to another. This indicator not only takes into account the interruptions themselves but also counts the activity changes that sometimes the worker is forced to make, which would also be reflected.

Business efficiency indicators

Characteristics and Types of Indicators

Each indicator must meet the following criteria or attributes to ensure the efficiency of decision-making under the best analysis conditions:

  • Realistic: It must be achievable and ensure a logical relationship between the resources used to measure it and the value they provide.
  • Measurable: It must be quantifiable in terms of frequency or quantity.
  • Understandable: It must be easily understood and recognized by all the people who use it.
  • Controllable: It must be subject to tracking and monitoring.

The most commonly used types of indicators are:

  • Result indicators: They refer to the terms of completion of a task. Example: achievement of the objective of calls answered per hour in a call center.
  • Performance indicators: They provide information on the performance associated with a task, project, or process based on the methods used for its execution and how it is approached. The metrics they provide help identify weaknesses, strengths, and opportunities for improvement. Example: evaluation of the duration of phone calls made and the proportion of sales closed.
  • Effectiveness indicators: They are related to the reasons for success or to the ability to achieve an activity. Example: degree of customer satisfaction after a sale.
  • Efficiency indicators: They are determined based on the ability to execute a job under conditions of resource economy and time adjustment. Example: average call time to close a sale.

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