by Brianna Crandall — November 4, 2016 — The Professional Retail Store Maintenance Association (PRSM), the authority on retail, multi-site facilities management (FM), has released the white paper Key Performance Indicators: Best Practices for Creation and Implementation. The paper provides retailers and suppliers a comprehensive overview of: what constitutes a key performance indicator (KPI), how to create KPIs using the SMART methodology, and how both retailers and suppliers can implement KPIs.
Case studies demonstrate how KPIs can be used to understand critical measurements and identify where retail facilities managers can increase value rather than cutting costs, and quantifiably gauge the current state of business performance. KPIs can also enable suppliers and retailers to identify where communication breakdowns occur, and develop solutions that enhance customer satisfaction. Well written KPIs are: specific, measurable, achievable, relevant and time bound, also known as SMART goals, says PRSM.
KPIs can impact: profitability, brand allegiance, customer acquisition, and employee engagement. The five most used KPIs in retail FM are: normal response times, emergency response time, average work order/invoice cost, not-to-exceed (NTE) compliance and interactive voice response (IVR) usage.
According to Bill Yanek, PRSM CEO:
KPIs are able to provide critical insight by tracking measurements over time and producing inarguable results that allow businesses to better understand their function and operation. That will enable them to meet organizational goals easier. The relationship between suppliers and retailers is complex and dynamic, but KPIs can strengthen the relationship and lead to the creation of integrated solutions that result in higher levels of client satisfaction.
The Key Performance Indicators: Best Practices for Creation and Implementation white paper is available upon log-in. PRSM provides a wide range of tools and resources for the retail FM industry.
