What metrics should you use to evaluate team performance in BPO?

Average Handling Time (AHT) is a metric commonly used for performance analysis, but I believe this metric drives incorrect behaviour - 'Lets get off this call as quick as possible' and not 'Lets treat this customer with the care they need regardless of time'. First call resolution is MUCH better aligned to a metric that promotes good call behaviour!

Few common metrics I am listing down: - Turnaround time of Transaction, Cycle time of Transaction, Processing time of Transaction or call answer time, Escalation, Call abandoned rate, Transactions touch time or call wait time , Customer complaint, Wait time or idle time, Latency or down time, Calibration among associate or QA, Unplanned leave, Productivity, C-SAT / NPS, Seat rotation rate, Transaction accuracy score, First passed yield or first call resolution, Program / initiative meeting or exceeding benchmarking targets, Process / business transformation projects completed, IP assets generate, Revenue addition, new business addition within or by referral. Also, industry specific metrics will gets add on into this.

Amen. It starts with Quality (defined as Conformance to Rqmts). If quality product or service not delivered...nothing else matters. Having said this...this is where most services fail and struggle. To assure quality, start with making sure there is clear understanding and skin in the game of "Requirements for Requirements : 1.1 Are value-add and effective (Requirements themselves have requirements) 1.2 Are clearly defined, unambiguous, with criteria 1.3 Define customer outcomes vs.overly prescriptive way or how to deliver. 1.4 Also include Service Provider Requirements to meet Customer Requirements. (What do you need from me to jump through my hoop)

Productivity metrics are vital for team evaluation, offering quantifiable insights into performance. Common metrics include: 1. Output Volume:Measuring the quantity of work produced within a set timeframe. 2. Efficiency: Assessing how well resources are utilized to achieve goals. 3. Timeliness: Evaluating the speed of task completion and meeting deadlines. 4. Quality: Ensuring that the work meets or exceeds established standards. 5. Utilization Rates: Tracking how effectively team members deploy their time and skills. 6. Goal Attainment: Measuring the achievement of set objectives and milestones. Also, essential to balance them with factors like collaboration, innovation, and problem-solving abilities.

Quality is one of the golden metrics of the BPO. Quality metrics should include the LEADS(Lead, Empathise, Ask, Deliver and Save) concept to be more effective.

One addition to productivity metrics is FCR(First call resolution) as it is very important. For every 1% increase in FCR can translate to 1% increase in Customer Satisfaction rate.

This metric helps employee earn more reward in terms of incentive. It will also help the organisation in getting more work from the client.

The bottom line is, clients are all about results. If you cannot show them their return on investment then that relationship will be null and void pretty soon. They’ll just tell you as it is because there are so many other companies out there that will do what you can’t.

Colaborative metrics in a BPO (Business Process Outsourcing) setting can assess team performance by measuring how effectively team members work together to achieve common goals. Examples include: Resolution Time: Measure the time it takes for the team to collectively resolve customer issues. This reflects their efficiency and collaboration in problem-solving. First Contact Resolution Rate: Evaluate how often the team can address customer concerns without escalation. A higher rate may indicate effective collaboration in handling diverse issues. Knowledge Sharing: Assess the frequency and quality of information sharing among team members. Customer Satisfaction (CSAT) Scores: Gauge customer satisfaction with the support provided.

Innovation metrics should be the top priority in a BPO especially in the times of AI. It brings in good value if one can try to convert this metric into a quantifiable metric through measurable KPIs.

Few of the Innovation metrics are: Process standardisation Procedure step elimination (removal of non-value add activities) Proactive identification risk (FMEA) Number of idea generated vs suggested vs accepted vs implemented Business transformation initiative PaaS or SaaS offering Leveraging new service delivery model or new technology Leveraging or using unexplored functions of existing technology New business differentiation by people, process and technology Speed of innovation R&D to product or service offering New product or service offering to margin conversion Idea to product or service conversion ratio

This metric is useful in recognizing the best resource and rewarding that resource will result in more efficient work which will benifit an organisation in getting more business.

Which metrics are used to determine team performance is entirely contingent upon the context. From a "run the business" of a support center perspective, productivity metrics are key. Metrics that matter in determining staffing levels and scheduling answer questions like: How many? How long? How often? In what pattern? But in the context of customer experience, an entirely different group of metrics come into play. These answer questions like: How effective? How easy? How do you feel? Would you recommend? Would you hire? The reality is that the best support organizations look at metrics holistically. There is no single magic metric. To deliver exceptional experience you also need visibility to effectively manage workflow and workforce.

Few other metrics to look out for: Number of employee with specific domain certification levels Number new clients added into portfolio (YoY) Number of industry certification such as ISO QMS, eSCM-SP, EFQM, ISO 27K etc Number of proprietary assets No litigation by client or by law No data security breach No penalty or revenue leakage