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« Key Performance Indicators for Human Resources | Main | Acquisition Toolbox »

July 21, 2007


Michael Friedenberg

I think this absolutely makes sense. You typically hear that a company’s biggest assets are its employees. The question is how do you quantify it and relate it back to revenue or overall company performance? If you’re an ISV or you provide consulting services, it’s easy. But how do you quantify those softer skills such as customer support or marketing? Will an advanced degree necessarily help with the bottom line?

Ron Dimon

There are operational metrics that help quantify softer skills, the trick is discovering, agreeing, and communicating on the interrelationships among them. For example, in Customer Support for an ISV, the metric could be turn-around-time (call open to call resolution). And if you compare that to # of hours of training received by the CSR, you may find a cause-and-effect ratio: the more hours spent on training, the faster the turn-around-time. The faster the turn-around-time, the fewer CSRs needed (or more calls get handled) - which will have an impact on Margin (and Customer Sat).
Documenting those "value-driver" relationships, and connecting them to company goals, should be the first step in any measurement, reporting, or planning initiative.

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