July 31, 2007 Issue 010 : Return to Articles : Printable Version

Key Performance Indicators (KPIs)

This month's Revenue-IQ article has been repurposed into "KPIs in Service", a FREE ebook that includes a list of 32 KPIs for contract services. Go to our Subscribe page to signup and receive the FREE ebook.

Key Performance Indicators (KPIs) are used for high dollar contracts that typically attract lots of executive eyeballs.

Customers are always thinking, if not asking, "Am I receiving what I've paid for?"

It's a legitimate question. You can't hold services in your hand, they're different every time, and they're performed in front of customers over and over again. The slippery nature of service puts doubt in customers' minds.

KPIs make service real. They tangibilize service in a way customers understand - in numbers.

Without KPIs, the only service number customers have is price. And they can't determine value from that alone.

KPIs, in their basic usage, are simply a vendor management tool. They show customers that services were performed and value received.

However, sophisticated customers use KPIs to achieve high-value strategic objectives. With these customers, contractors approach KPIs differently.

Regards,

Chris Arlen, President, Service Performance

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