As the field service industry adjusts to evolving market preferences, a changing workforce, and increased technology adoption, service delivery is shifting from break-fix models to outcome-based service and guaranteed uptime.
To successfully achieve outcome-based service, field service organizations (FSOs) must more closely synchronize business operations and business objectives. Setting and monitoring key performance indicators (KPIs) unique to your business can help you better align these factors.
In the rest of this article, let us share some of what we at Astea will share with you:
- Ways to define KPIs
- Tips on how to determine your KPIs
- How to move the meter
What Are Key Performance Indicators in Field Service Today?
Key performance indicators are refined, quantifiable metrics companies use to measure their results against their objectives. Such factors as revenue growth and customer retention can be overarching business goals, but more granular metrics move these objectives, and are where you should look to define your KPIs.
For example: If your overarching objective is to achieve a 90% uptime SLA target, you can move down the chain of service delivery to measure the percent of on-time preventative maintenance calls made, or the number of unscheduled repairs per customer. Looking at specific event types yields actionable insights into shortcomings or successes that contribute to reaching that target.
According to one study we conducted, leading field service companies typically set between four and 10 KPIs. They usually fall within four categories:
- Task completion
- Customer satisfaction
Some industry standard examples include:
- First-time fix rate (task completion)
- Travel time (productivity)
- Average parts usage (inventory)
- Net Promoter Score (customer satisfaction)
Other common industry KPIs include workforce utilization and mean time-to-resolution. If your organization is using KPIs for the first time, these would be great places to start.
How Should Your Company Determine Your KPIs?
Sound KPIs are specific, measurable, and impactful, according to Forbes. They should be specific enough to answer macro business questions—for instance, “Where did our Q4 sales growth (or decline) come from?”
Starting with overarching business objectives, you can move down the chain of service delivery and pinpoint measurable events or actions that resulted in your business achieving or failing to achieve its objectives.
Our industry encompasses multiple niches and business models. The specific field service management KPIs you should attend to depend on what services you offer. Keep questions like these in mind:
- Is your business long cycle or short cycle service oriented?
- Do you work with equipment from a specific manufacturer?
- Do you handle parts and logistics, or do you outsource this task to a third party?
If you’ve used field service management KPIs or something similar before, it’s time to dig a little deeper:
- What progress have you made on your existing KPIs?
- Have your KPIs been effective in driving business objectives?
- What new business objectives do you have?
- What market developments do you anticipate?
Answering these questions will help you further refine your KPIs.
Move the Meter on Your KPIs
So how do you move the meter on your KPIs?
If you’ve designed actionable key performance indicators, you’re halfway there already. But in order to really move the needle, you need to be able to link results to practices, and this linkage requires greater visibility and insights to your processes.
One way to gain such visibility is to use a unified field service management (FSM) platform like Astea’s Alliance Enterprise.
With its smart scheduling and dispatch system, for instance, you can look more deeply into workforce utilization and travel time KPIs. If technicians are spending too much time in traffic, you can reference the wealth of information on the system to see if you can improve the situation through more efficient routing, appointment scheduling, or field staff distribution.
In addition, Alliance Enterprise’s business intelligence and reporting tools help you see your end-to-end processes more clearly. They provide detailed insights on almost every aspect of your service delivery, from preventative maintenance to contracts. This information takes the guesswork out of KPI measurement.
Get a Competitive Edge When You Use KPIs With Astea
Field service consumers are demanding higher levels of service. Field service organizations are equipping themselves to deliver those levels, creating an increasingly competitive environment.
Now is the time to take a hard look at your business objectives and how to realistically achieve them. When used properly and paired with the right technology, key performance indicators empower you to not only keep pace with industry change but also position your organization as a field service leader.
To find out more about how Alliance Enterprise can accelerate your company’s progress and success, contact Astea today.