For many years now, I have been doing various rounds of BPM. But most recently when there is a mandate to implement a commercial product (ERP/SRP) to support the process, i am wondering about the efficacy of KPIs in this scenario.
Whenever we did ground-up development, we defined KPI's. By and large we had it at the process level rather than at the form level, where we added rules governing deadlines, escalations, and
scheduling (expected wait times, expected working time, planned completion
time) that act as KPIs for measuring efficiencies (cycle time) and
effectiveness. While ours was not a procurement centric organization, and more of a solutions delivery firm, we looked ways in BPM applications to measure utilization, rejections rates,
cycle times, availability, retention, attrition, and growth.
Our measurement effort helped us to:
§ Improve
timeline
§ Compare
our process over time
§ Set
target, See if
changes to processes have had the wished effect
§ Discover
when action is needed
I believe, this measurement from the
process level will be connected to the balanced scorecard – > the following
way:
1. Strategic
Business Objective [SBO]
2. Business
Planning Goal [BPO]
3. Critical
Success Factors [CSF]
4. Key
Performance Indicator [KPI]
5. Process
Performance Indicator [PPI]
