Much of today’s businesses require astute quantitative calculating of business performance and continuous tracking and assessment of industry status.
One of the metrics that is necessary for all businesses is the amount of time field service engineers spend on each individual client.
In the 1980s, Japan introduced “quality circles” whereby staffing was grouped according to quality control guidelines for each particular phase of business. This idea led to field service analytics that calculates time vs. cost of field service business operations.
Few businesses can ignore the significance of key performance indicators (KPIs) as part of business management and leadership.
The basic metrics of field service involves both tactical and strategic key performance indicators. Add to this financial and operational key performance indicators and the need for actual and projected KPI data.
Thus, field service KPIs are composed of three elements that include business operations, sales and marketing, and finance. All of which are intertwined in the performance of daily business operations.
With business operations dependent upon digital algorithms and software applications, the job of calculating field service KPIs is cost-effective.
Part of this is due to advancements in machine learning and the latest innovations in computer technology, such as blockchain, which is a digital ledger of transactions duplicated and distributed across an entire network of computer systems within the specified blockchain.
Another more faceted form of technology is Distributed Ledger Technology (DLT) whereupon a decentralized database is managed by several users.
A DLT Blockchain is basically defined as “a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites, countries, or institutions”. A DLT has no central administrator, unlike distributed databases.
Technology changes the way KPIs are calculated while the end results created are specific to each type of industry.
There are several benefits of KPIs in business operations, finance and sales, and marketing. These include:
Engineering firms rely heavily on key performance indicators to test their field service technicians’ performance at various stages of fabrication design and installation.
Among testing laboratories that perform field testing offsite, KPIs are essential to know the accuracy of test samples drawn before they arrive at the lab for testing and research.
With ongoing use of KPIs, lab managers determine the effectiveness of their quality control standards as it relates to field service and lab staffing.
In business operations in manufacturing, KPIs are essential to know production output and monitor each of the manufacturing phases from R&D through to shipping and receiving.
KPIs are an important factor in QA/QC labs as indicators of adherence to quality standards of the business, as well as for state and federal regulatory compliance.
KPI monitors quality standards and is a major factor in advancing to higher levels of quality assurance and quality control of products, employees, and peripheral field service technicians.
For instance, in chemical industries that offer raw materials or secondary products to international customers, a field service technician acts as a liaison between the chemical manufacturer and purchasers of chemical products.
This type of KPI monitors the technician’s ability to adapt chemical product uses as they exist in offshore countries.
Field service key performance indicators are also useful in batch digital data production. In this type of industry, quantitative calculation of daily data output is assessed as KPIs.
Each time a sale is completed, it has had a specific track record that began with field service by sales engineers who meet with prospective clients. The duties of sales engineers as field service technicians include:
Although many businesses ignore the importance of KPIs, it is important to adjust business strategies to incorporated changes to new and developing customer attitudes.
Today’s customers are purpose-driven and focused. With this comes the need for businesses to relate emotionally to prospective customers. The use of KPIs can also improve employee focus and accountability, as they are responsible for tracking their progress and reporting on their work. It creates a greater sense of ownership for individuals.
The template of KPI for field service engineer is heavily related to business finance.
The elements included in finance KPIs can be:
All of the above factors affect the most important business goal: a healthy, stable, flourishing bottom line. As such, savvy business owners and entrepreneurs rely on KPI charts to disclose critical operations, finance and sales and marketing key performance data.
The cost of managing KPI for field service engineer projects can be prohibitive and untimely without the use of outsourced CPA services.
A KPI chart can be simple or complex depending on the type of business and industry. KPI is found in the world of investments and banking.
Private equity investment firms report using KPI as a metric for cash flow, expense control, product-by-product analyses and liquidity in order of impact on an investment portfolio.
The larger a business becomes, the more KPIs as a metric strategy become an essential tool to gauge the overall corporation’s profitability and success. However, KPIs are also useful for determining how well business goals have been met.
When a business owner or entrepreneur organizes their field service engineering staff according to KPIs, they find increased clarity, communication, and an interface between management and staffing.
For field service engineers, a KPI chart includes time and labor disseminated as individual segments of key performance indicators.
If there is a large group of field service engineers, the chart may be broken down categorically according to their level of experience or number of clients serviced.
The chart may further calculate performance by positive and negative factors, such as the highest and lowest numbers of repairs and repair costs within each category.
One of the most important business strategies is to choose an experienced business advisor to define and refine the complexities of KPIs for sales and marketing, operations, and finance.
We optimize KPIs to suit the business template in detail from daily operations to finalizing data and reporting on the most important factors that determine business success. We customize every KPI for field service engineers that adapt to business needs and optimal employee productivity.
Fusion CPA provides our clients with a viable means of quantitative measurement of business and staffing performance.
If KPI is not already a business tool or if your existing KPI planning needs adjustments, contact Fusion CPA and discuss your needs.
Fusion CPA offers a highly trained staff who work with clients over a broad range of industries.
It is Fusion CPA’s priority to assist our clients with the creation of the best KPIs for field engineer projects.