Many companies choose a business business process outsourcing (BPO) provider to save money. However, the only way to truly know the impact of outsourcing is to establish and track key performance indicators (KPIs).
Dozens of potential KPIs exist, so companies must know how to select the right ones for their business. KPIs must be relevant, and specific, and span the entire breadth of work covered.
Beyond knowing what to track, businesses need to know how to put KPIs to use to manage their teams. This article will focus on steps and approaches to using KPIs in a multinational team across different continents.
KPIs are metrics used to measure performance against a set of predetermined objectives. They’re also used to gauge the success or failure of particular strategies or initiatives. KPIs help businesses stay accountable and transparent about who is doing what. Teams that don't track KPIs regularly risk complacency and loss of business opportunities.
When it comes to setting KPIs for BPO operations, there are several key factors you should consider tracking:
While many KPIs exist, you want to track those that deliver the most meaning and value for your business. To choose the right set of KPIs to monitor, you can follow a proven step-by-step process.
The first step is to choose metrics that are relevant and specific to what you are trying to measure. Here are a few examples:
These are just a few examples of KPIs you could track. Depending on your business model and the industry you're in, you could opt to focus on many other metrics. The priority is to choose ones that are measurable and actually move the needle of your business growth.
Once you’ve determined which KPIs to track, the next step is to secure stakeholder and team buy-in. This means getting everyone on board with the KPIs that have been chosen, how they will be tracked, and the general process that you are proposing for the team. To facilitate this process, you can utilize stakeholder interview templates to gather valuable insights and ensure that all concerns and expectations are addressed from the outset.
The next step is to assign ownership for each KPI. Who will be responsible for tracking the data? Who will be responsible for making decisions based on this data? You should ensure that everyone understands their individual roles and responsibilities to ensure successful implementation and tracking of KPIs.
To measure progress accurately, you need to determine how data will be collected and how often it should be collected. Make sure everyone involved is clear on when they should collect data and what kind of information needs to be captured.
Another important aspect of data collection is identifying alternative measures of measuring these KPIs.
Once you’ve established your KPIs, it’s important to ensure that everyone is aware of the results. Use findings from your KPI tracking to identify areas where improvements can be made and celebrate successes where you are meeting or exceeding goals.
Finally, review your KPI approach regularly to make sure it’s still relevant and up-to-date with current industry trends or changes within your organization itself. Refine or adjust your approach as necessary so that it continues to provide valuable insights into performance over time.
By following these steps and setting effective KPIs in the BPO industry, you can ensure that your team or provider is constantly striving towards greater efficiency, quality, speed of execution, scalability, and security — all while delivering the best possible service to customers.
Companies that transition to BPO can cut costs and decrease delivery times. For example, if a brand outsources its customer service it can support customers much better and faster, improving satisfaction and loyalty. However, it can be challenging to gauge the performance and quality of these external providers. And that's why it's so essential to set and track KPIs throughout the process to optimize performance.
Need help setting better KPIs? Want to work with a BPO provider that understands your business needs and stays accountable to every KPI you're measuring?
Here at Helpware, we have an expert team of customer service agents that could help bring your business to the next level. Schedule a demo to see what we can do for your business.