using metrics to tell your story
DESCRIPTION
Using Metrics to tell Your Story. Tennessee Statewide 2014. Agenda. All about Memphis What are metrics? Why measure what we do? Developing metrics/KPI’s Standard metrics Presenting your metrics. M emphis 201 2 Census. Area: 324 Square Miles Land: 315.1 Square miles - PowerPoint PPT PresentationTRANSCRIPT
Tennessee Statewide 2014Tennessee Statewide 2014
AgendaAll about MemphisWhat are metrics?Why measure what we do?Developing metrics/KPI’sStandard metricsPresenting your metrics
Memphis 2012 CensusArea:
324 Square MilesLand: 315.1 Square milesWater: 9.0 square miles
Climate Average August temperature 71 to 90 degrees Highest temperature 108 degrees (7/13/1980) Lowest temperature -13 degrees (12/24/1963) Average rainfall 53.68 inches
Memphis 2012 CensusPopulation:
655,155 15.8% Between ages of 25 to 34 13.3% Between ages of 35 to 44 14.1% Between ages of 45 to 54 10.0% Age 65 or older Median age is 34.0, (national median age
is 36)Median income of $32,285
US Median $51,107Average commute time 24 minutes
(NJ 14.6% more than 90 minutes)
What does this tell us about Memphis?
Climate?
Age?
Income?
What are Metrics?
Figures used to measure activity, results or performance
Metrics support a story
Stories support metrics
Metrics are also known as:
Key Performance Indicators (KPI)Critical Performance Indicators (CPI)Key Performance Measurements (KPM)
Score CardReport CardStatistics
Why Measure What We Do?
What gets measured gets attention
The language of business is dollars and numbers
“Without statistics, yours is just another opinion”.
Why Measure What We Do?
Helps to understand where successes and failures are coming from
Used as an early warning system – allows you to be proactive
Helps in making decisionsNo doubt about what you want done Rewards (batch processing as a supervisor)
Why Measure What We Do?
Sell your ideas and make presentationsCan be used as the basis of Process
Improvement PlansYou can’t improve what you don’t measure
Benchmark either internally or externally
Compare yourself to a standard Set individual and team objectives
How Healthy Is Your Department?
How do you know what to measure?
How do you get started?
What do you do with them?
1. Brainstorm with your team and ask other Payroll or AP Departments what KPI's they are reporting
You don’t want anyone to feel threatened or intimidated
Get buy-in from Department
Developing KPI’s
2. Determine which KPI's are the most basic and the most meaningful to your organization
Developing KPI’s
3. Pick 6 (+/-) to report Select a reasonable number of KPI's to
report. Which ones are appropriate?Determine what upfront work will need
to be completed (report definition, etc.)Determine who will generate the data
Developing KPI’s
4. Avoid analysis paralysis and just start issuing them!
Focus on data collection and not the pretty presentation -- they don’t have to be pretty in the beginning
You don’t have to issue them to ‘everyone’ in the beginning. Start by issuing them within the department
Developing KPI’s
5. Agree on targets for each KPI (don’t let them be de-motivating)
Methods for determining appropriate targets:
Use predetermined goals already set by your organization
Best PracticesReasonable and attainable for your organization
Developing KPI’s
6. Add targets to KPI's and refine format
Make it look prettyShould be easy to analyze
They are not any good if no one looks at themShould not take a long time to reviewConsider your audience (executive
summary?)Include a cover page
Developing KPI’s
Developing KPI’s
7. Get feedback for enhancements
From colleagues, supervisors, team members
What would they like to see?WIIFM (What’s In It For Me?) -- How does it impact their department?
Developing KPI’s
8. Issue KPI’s on a regular basis
Weekly, monthly, quarterly; People should know when they are available
Different for different people
Developing KPI’s9. Update and change as needed
If it doesn’t change; don’t track itWhat was urgent may not be any longer
Rollout of new functionalityIndustry/regulations changes
Things to Consider for KPI's
Add a sentence to describe the significance of the KPI
Show the KPI over time (multi-year trends)Include month-to-date, quarter-to-date and
year-to-dateInclude agreed upon target data and
compare to actualInclude note of explanation when
appropriate
Common Payroll Department MetricsCost per paymentNumber of employees paid per Full
Time Equivalent (FTE)% or number of off-cycle checks
issued% of employees on direct deposit Total Tax Penalties
Common Payroll Department Metrics
System performance Clock end time for payroll confirm Basic statistical information
Total payrollTaxes paidDeduction information
Late paperwork and its impact
Metrics As ControlsTrend Analysis
Gross Wages between periodsChecks in Excess of $X.XXTotal Taxes PaidNumber of employees with no checkHours worked in excess of….Account balancesOther Key Amounts
Common AP Department Metrics
Cost per paymentFull-time ratio to paymentsTotal invoices processedElectronic vs. Paper invoicesTotal annual payments madePercent of electronic payments
Metrics to Enforce SLA’s
Number of Phone calls takenAbandoned callsTime Spent on callProcessing time Accuracy of responseNumber of contacts before resolutionSpeed of response
CALL CENTER
Look for InspirationAPA Benchmarking Study Business MagazinesInformal Benchmarking Business BooksPast Performance
How to present KPI's
Bar graph Pie chart Score card Plotted points on a graph Straight stats
Poster or Post-it
Just knowing a metric can improve it. You will be more aware of what makes the number fluctuate.
When you review the metric regularly, you will start to make better decisions to influence it.
95% DIRECT DEPOSIT
Payroll Cost per PaycheckJuly 2014
Target $1.00
Disbursement by LocationJuly 2014
Target Actual Score% Of Off-Cycle Checks 0.5% 0.1% Green
% Of Direct Deposit 100% 96.4% Red
Late Personnel Actions 2% 1.8% Green
% Of Under Payments < 1% 0.5% Green
% Of Over Payments < 1% 0.9% Yellow
Direct Deposit July 2014100%
75.30%
80.70%
84.60%
87.90%
93.40%
95.80%96.40%
70%
90%
Jan Feb Mar April May Jun July
Target
Actual %
80%
# of Payments Issued
# of Active Employees
Monthly Frequency of Payment
# of EE's Paid per FTE
# of Paymts Paid per FTE
Location 1 Weekly 11,343 3,085 4Location 1 Salaried 7,161 3,906 2
Pensioner 7,607 7,623 1
Bonus 5,225 1Location 2 Weekly 11,303 2,737 4Location 2 Salaried 2,854 1,275 2
Total 45,493 18,626 1,552 3,791
Target 1,500
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Ratio of Employees to Payroll FTE (June 2013 – June 2014)
Total New Vouchers By Month
37
Month 2011
2012
2013
2014
January 16,568
37,054
41,822
45,888
February 14,416
33,784
46,022
45,188
March 33,979
40,476
42,624
46,392
April 26,227
38,978
70,888
45,833
May 36,244
39,091
45,026
42,399
June 36,018
38,490
44,638
50,245
July 38,319
41,548
46,500
August 40,784
44,088
47,427
September
29,667
30,108
39,888
October 31,207
39,648
47,957
November
38,453
28,114
42,772
December 37,573
31,440
41,901
Total 378,545
442,261
557,465
137,468
Includes FICA payments -- 25,000 vouchers
METRIC YOUR COMPAN
Y
PEER BEST IN CLASS
FTE/Ratio
920/1 880/1 1200/1
Off Cycle Checks
2% 4% 1%
Cost Per Paycheck
$2.30 $3.40 $1.70
Direct Deposit
94% 86% 93%
Include an Index!. Section 1 -Ratio of Employees to Payroll FTE (slide 3). Section 2 - Payroll Overtime (slide 4). Section 3 - Self Service/Manual Changes (slides 5-9). Section 4 - Direct Deposit (slides 10-11). Section 5 - Breakdown of Checks Processed (slides 12-13). Section 6 - Salary Changes and Retro (slides 14-16). Section 7 - Overpayment (slides 17-20). Section 8 - Taxes (slides 21-22). Section 9 - Vacation Payouts (slide 23). Section 10 - Additional Pay Sheet Loads (slides 24-26). Section 11 - Garnishments (slide 27). Section 12 - Forms (slide 28). Section 13 - Front Range (slides 29-31)
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What story are you telling?