As success is built on measuring past performance any solution supporting business transformation must capture key metrics and enable rich analytics.
Metrics cover the following:
- Financial – Spend, Savings, Volumes
- Efficiency – Revenue, Cost, Labor Intensity, Migrations, Cycle Time, Unit Cost, Transaction Volumes, Self-Service Volumes, Automation, Outsourced, Offshored, Shared Service Utilizations
- Risk – Audit Issues, Compliance Issues, Not in Good Order (NIGO), Leakage
- Satisfaction – Net Promoter Score (NPS), Complaints, SLAs Achieved, First Call Resolution (FCR), Quality, Call Abandonment, Customer/Stakeholder Satisfaction
For example, Insurers measure turnaround time (TaT) for key transactions such as Claims. They want to understand the average cyle time to complete an end-to-end claims transaction (first notice of loss to payment). TaT is calculated by dividing the sum of time elapsed to process a claim by the sum of claim transactions completed. BPM-based systems track this data at the process level and form level. Through the process engine solutions capture who does what at any point of time and how long it takes. Through the form, solutions capture what data was entered (claimant, product, channel, incident, location, etc.). With this information Insurers identify issues and bottlenecks. Then they determine ways to improve operations through changes in process, systems, and personnel.
Before starting any project, make sure you first identify key metrics and define standards of measurements. Capture the KPIs in your workflows and forms. Create canned reports and domains where data can be sliced and diced based on line of business, geography, demographic, and product line.