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staff performance measurement (negative scores)
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FRM2011
#1 Posted : Friday, April 24, 2015 9:59:19 AM
Rank: Elder


Joined: 11/5/2010
Posts: 2,459
Hallo good people,

I need some insights here. I work in the service sector and here are some of the deliverables we gave our staff last year.

1. To ensure customers giving negative feedback do not exceed 3%.
2. To ensure that at least 60% of customers served would recommend us to others.

The above are usually derived from an independent customer satisfaction survey. Now we have a nightmare as most of staff feel our performance measurement system is not fair.

If a staff has 19% of their customers giving negative feedback, what's their percentage score. Which is the fairest way to measure that performance. Should the base be 3% or 97% ?

On the second, we have some staff whose performance is actually negative. As in out of 10 customers sampled none would recommend us and indeed some said they would discourage anyone from coming to us out of their bad experience. Now the survey guys have assigned scores like -15%. How do I score that out of a target of 60%.

Saidieni tafadhali. Am supposed to give a direction on this matter by COB today.
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Sasha
#2 Posted : Friday, April 24, 2015 11:15:00 AM
Rank: Veteran


Joined: 9/5/2007
Posts: 627
Sorry I know this might not be helpful at this point, but those KPIs were not set properly. Had they been, there would not be a debate now. My view:

1. What are you measuring? Negative feedback or satisfaction? Generally, you should use 'positive' KPIs i.e. it is recommended to measure satisfaction from which you can deduce negative feedback. In this case, your satisfaction rating is 81%. Come up with your basic standards which your staff should maintain then measure that.
2. If out of 10 customers, none would recommend your services you simply have 0% retention. You cannot score a negative score for retention. Where some customers would discourage anyone from consuming your services, you will be measuring churn of your customers.

If there is debate wrt to KPIs and scoring at this stage, you will be better off seeking a middle ground with your staff. Then be very precise with your KPIs for the next performance cycle.
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PeterReborn
#3 Posted : Friday, April 24, 2015 2:16:23 PM
Rank: Veteran


Joined: 1/3/2014
Posts: 1,063
FRM2011 wrote:
Hallo good people,

I need some insights here. I work in the service sector and here are some of the deliverables we gave our staff last year.

1. To ensure customers giving negative feedback do not exceed 3%.
2. To ensure that at least 60% of customers served would recommend us to others.

The above are usually derived from an independent customer satisfaction survey. Now we have a nightmare as most of staff feel our performance measurement system is not fair.

If a staff has 19% of their customers giving negative feedback, what's their percentage score. Which is the fairest way to measure that performance. Should the base be 3% or 97% ?

On the second, we have some staff whose performance is actually negative. As in out of 10 customers sampled none would recommend us and indeed some said they would discourage anyone from coming to us out of their bad experience. Now the survey guys have assigned scores like -15%. How do I score that out of a target of 60%.

Saidieni tafadhali. Am supposed to give a direction on this matter by COB today.

There is inconsistency and miscommunication with your business strategy.Your objective is to punish employees as opposed to motivate them and have a win win situation.Your surveys are also insufficient because they provide very little information.What makes the customers not recommend your business?The management and employees are in different wave-lengths.
Get a good CRM system that will help you get proper feedback from the client and communicate to the staff the objective and importance of the KPIs and remove any fears and threats on attaining these KPIs.
Consistency is better than intensity
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FRM2011
#4 Posted : Friday, April 24, 2015 3:01:15 PM
Rank: Elder


Joined: 11/5/2010
Posts: 2,459
Sasha wrote:
Sorry I know this might not be helpful at this point, but those KPIs were not set properly. Had they been, there would not be a debate now. My view:

1. What are you measuring? Negative feedback or satisfaction? Generally, you should use 'positive' KPIs i.e. it is recommended to measure satisfaction from which you can deduce negative feedback. In this case, your satisfaction rating is 81%. Come up with your basic standards which your staff should maintain then measure that.
2. If out of 10 customers, none would recommend your services you simply have 0% retention. You cannot score a negative score for retention. Where some customers would discourage anyone from consuming your services, you will be measuring churn of your customers.

If there is debate wrt to KPIs and scoring at this stage, you will be better off seeking a middle ground with your staff. Then be very precise with your KPIs for the next performance cycle.


Thanks @Sasha. I can tell this is your territory.

Our targets were clearly not very clear. I particularly like the idea of using positive kpis instead of negative ones.

Thanks for the advice.
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FRM2011
#5 Posted : Friday, April 24, 2015 3:09:15 PM
Rank: Elder


Joined: 11/5/2010
Posts: 2,459
PeterReborn wrote:
FRM2011 wrote:
Hallo good people,

I need some insights here. I work in the service sector and here are some of the deliverables we gave our staff last year.

1. To ensure customers giving negative feedback do not exceed 3%.
2. To ensure that at least 60% of customers served would recommend us to others.

The above are usually derived from an independent customer satisfaction survey. Now we have a nightmare as most of staff feel our performance measurement system is not fair.

If a staff has 19% of their customers giving negative feedback, what's their percentage score. Which is the fairest way to measure that performance. Should the base be 3% or 97% ?

On the second, we have some staff whose performance is actually negative. As in out of 10 customers sampled none would recommend us and indeed some said they would discourage anyone from coming to us out of their bad experience. Now the survey guys have assigned scores like -15%. How do I score that out of a target of 60%.

Saidieni tafadhali. Am supposed to give a direction on this matter by COB today.

There is inconsistency and miscommunication with your business strategy.Your objective is to punish employees as opposed to motivate them and have a win win situation.Your surveys are also insufficient because they provide very little information.What makes the customers not recommend your business?The management and employees are in different wave-lengths.
Get a good CRM system that will help you get proper feedback from the client and communicate to the staff the objective and importance of the KPIs and remove any fears and threats on attaining these KPIs.


Thanks @peterreborn, I am realising now that I am attempting to fix what should have been sorted at target setting level. Its a learning experience.

Out of curiosity and arising from your comment about motivating rather than punishing staff, what's your take on setting a target for customer satisfaction.

Its not realistic to expect 100%, that's why we had set our exceptions limit at 3%.
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GGK
#6 Posted : Friday, April 24, 2015 3:09:16 PM
Rank: Member


Joined: 11/21/2006
Posts: 608
Location: Ruiru
Interesting,
If 100% of your customers would not recommend you to others, it simply means the product did not meet their requirements. => Poor quality.

Customer feedback should seek input on what the customer requires and expects. This in turn will inform the product design so as to meet the requirements at minimum [and exceed expectations].

Performance appraisal need not necessarily result in adverse action, but can also point to training needs.

I agree, the target here is 97% satisfaction which means that with 19% dissatisfied, you have 81% satisfaction index resulting to a score of 81/97.

Targets should be done in such away that a staff can exceed them. 97% customer satisfaction is very difficult to exceed.
"..I am because we are. "― Ubuntu, Umtu,
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wazuaguest
#7 Posted : Tuesday, April 28, 2015 2:16:33 PM
Rank: Member


Joined: 2/9/2012
Posts: 576
appraise your organization.its the one with a problem
employees results should be evenly distributed. (re:the distribution curve)
Africa belongs to Africans.
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