Many organizations take for granted the value of data in their decision making, value opportunities and day-to-day operations. Though most organizations keep track of a specified set of metrics that they believe to be a good determination of their success, they may have additional opportunities to leverage data in ways that can improve their operations, drive growth and allow them to enjoy the benefits of innovation. By creating transparency of performance metrics and aligning to business metrics in the marketplace, organizations can create a fresh focus on strategies that will maintain their competitive advantage and achieve their goals.
ISG has identified these Top 5 ways to quantitatively and qualitatively track success.
1. Measure performance. Dive deep into your operations and drive transparency into a specific set of services that are being delivered either internally or from a service provider (or a combination of both). Assessments can study price, cost and/or quality. Measuring performance will identify opportunities and provide results that you can leverage with a service provider or use as part of a broader governance, service integration or strategy exercise.
2. Compare yourself to the broader market. Measure your service, cost and performance views against target operating models that use a variety of approaches to service delivery. Understanding what the market bears for different commodity services can show you where you can reduce costs and improve quality and performance.
3. Measure for maturity. Qualitatively assess your organization by looking for service integration, process efficiency and adherence to and proper delineation of roles and responsibilities. This way you can be sure to avoid duplication and guarantee that your services are “fit for use.”
4. Look at customer satisfaction. Get a fresh perspective from your business partners. A stakeholder survey can help you understand the satisfaction of the recipients of your service delivery organization and open your eyes to some surprising opportunities for growth and service improvement.
5. Design metrics to determine the value of your sourcing relationships. Organizations that outsource should comprehensively analyze the value of their outsourcing contracts on a regular basis. Areas of analysis should include services, service-level agreements, prices, pricing models, contract structures, governance structures, service integration and management, ability to incrementally improve and innovate, as well as other contractual dimensions.
ISG has helped countless organizations track the right metrics for success. Contact Tom Butorac to discuss how you can use data to help you make fact-based decisions and sustainable improvements in your operations.