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13 November 2017

Performance matrices (part 3)

In the previous articles, we discussed the use of KPIs in managing SLA of a service center. Now let’s take a look at performance evaluation and motivation for the service center employees.

Why do you need to measure employee performance?

The KPI system that we built in the previous article is a great tool for managing the operations of a company. It gives an overview of the current situation so you can compare it to the previous periods and in a way predict the future periods.
However, with a KPI system only, you cannot make precise development plans; you can only assume and rely on circumstances. For better control, you need an additional tool to manage the performance of your employees. If you can evaluate the performance, you can motivate your staff to achieve the plan values of your KPIs, and optimize payroll by paying bonuses strictly according to performance.

Performance matrices

We suggest using performance matrices as your main tool for performance evaluation. What is a performance matrix?

Imagine that you are head of a department. For each employee, you have a notebook where you specify what the employee does during the month, how much work they accomplish and how much money they earn. At the end of the month, you show your notes to the employees and decide what bonus they get. One day you have an idea: make plans and tasks for each employee at the beginning of the month and make sure that the employees are aware of these tasks and know where they are heading. After a while, you notice a certain pattern in your notes. This is how you come to a performance matrix.

You do not need to prepare a performance matrix for each employee, it is easier to make several matrices for employees with similar duties. This where a performance matrix template comes in handy.

ELMA offers several tools for managing a performance matrix:

  1. Performance matrix approval. In the beginning of a month, employees can set tasks that they wish to accomplish. Of course, this must be coordinated with their subordinates. In ELMA, you can assign a certain person or a job position for approving such tasks. Or it can be done as an executable business process.
  2. approval of performance in ELMA BPM

  3. Performance matrix control. At the end of the month, it is necessary to check if the employees have accomplished the tasks, and evaluate them. For that, ELMA has control features similar to the approval settings.
  4. performance control in ELMA BPM

  5. Performance matrix scale. For a convenient representation of performance, ELMA uses a color scale of red, yellow and green that shows how well an employee is performing.
  6. performance demonstration in ELMA BPM

  7. Employees (groups). When creating a performance matrix template in ELMA, you can assign it to an employee or a group of employees.

Now you have to decide which parameters you will use to assess the employee efficiency.

  1. KPIs. Of course, to assess performance you can use both the KPIs that an employee is responsible for and general KPIs of your company. Depending on the relevancy, KPIs can have different weight.
  2. employee performance KPI in ELMA BPM

  3. SMART tasks. SMART tasks are often used in management. They must be Specific, Measurable, Attainable, Relevant and Time-bound. Each SMART task influences the general performance of an employee. Therefore, you can assign weight to each SMART task. In ELMA, you can set up parameters for SMART task control.
  4. SMART tasks in ELMA BPM

  5. Grades. At some point, each employee does certain work for an internal customer. The main internal customer is the direct supervisor of the employee, but there may be others, too. For example, in our service center, a technician is the internal customer of the storekeeper when it comes to receiving spares from a warehouse. Grades can also be assigned with a specific weight.
  6. employee evaluation in ELMA BPM

  7. Schedule compliance. Apart from SMART tasks, employees also work on regular tasks and business process tasks. ELMA controls schedule compliance by checking the number of completed tasks and the total number of tasks. You can specify the weight of schedule compliance in the total performance evaluation.
  8. schedule compliance in ELMA BPM

In such a way, the performance evaluation consists of four basic parameters: KPIs, SMART tasks, Grades and Schedule Compliance. Each parameter has its own weight. You do not have to use all the four parameters together, but can exclude some of them from the evaluation. This way, you can evaluate performance according to the specifics of work of the employee and include only the necessary parameters.

In the previous article, we listed and described the key job positions in a service center. Let’s add performance evaluation description to this list.

  1. Chief of maintenance is in charge of many demanding activities: control of department’s KPIs and execution of SMART tasks. Also, chief of maintenance interacts with the CEO and the Head of Client Relations, therefore, it is logical to include their grades in the performance matrix, alongside with KPIs and SMART tasks.
  2. employee performance matrix

  3. The technician is responsible for the speed and quality of repairs, so the technician’s performance matrix must include corresponding KPIs. Also, let’s include the grade given by the chief of maintenance.
  4. employee performance matrix in ELMA BPM

  5. In a similar way configure the matrices of other employees. Head of Client Relations Department is in charge of employee training, work schedule, resolves conflicts with customers and controls debt to the customers and the orders not handed out. Since the range of tasks is rather wide, you should include all the possible parameters in the performance matrix for this employee.
  6. An employee of the Client Relations Department does not have any assigned KPIs, but we can include the grade of their superior and schedule compliance into their performance matrix.
  7. Phone operator receives incoming calls, informs customers and passes information between customers and technicians. There is only one KPI assigned to the phone operator, but it is very important to set let’s its weight to 60 %. The operator’s job consists of communication with people. Include the superior’s grade into their performance matrix, and their superior can evaluate the quality of communication by listening to phone calls recordings.
  8. Head of Procurement has a lot of duties, so the performance matrix for this employee includes KPIs (such as growth of warehouse), SMART tasks, grades and schedule compliance.
  9. head of procurement department performance

Now you know how in ELMA you can configure performance matrices for a small service center to measure the performance of all employees.

How to manage SLA parameters with KPIs in a service center (part 1)
Creating a KPI system (part 2)

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Alexander Khodyrev
Alexander
Khodyrev
Localization Specialist