BUSINESS TRANSFORMATION

Key performance indicators (KPIs) for digital GBS implementations

Global Business Services (GBS) has become one of the key strategic business partners for businesses around the globe. In addition to driving cost reduction and enabling the adoption of technology, GBS transformation has also played a pivotal role in helping businesses achieve their ESG (environmental, social, and governance) goals. Moreover, effective GBS implementation and management also have a critical impact on customer experience and talent strategy for modern organisations operating in the dynamic international business landscape.

However, as Peter Drucker has famously said, “You cannot manage what you do not measure” you cannot effectively manage GBS if you do not have the right tools and strategies to measure key GBS KPIs. But as KPI models and tools have continued to evolve, how can you effectively measure and manage your GBS performance?

Measuring GBS performance

GBS is the backbone of operational excellence, and measuring GBS performance is the way to go if you want to achieve and maintain high performance levels. But how can you ensure your GBS transformation is working as expected? And how can you go a step further from the current performance?

Here are three steps to measure GBS performance and consistently deliver value to your customers:

Identify the right measures

The first thing you need to do is identify the right metrics and KPIs that will help you measure the effectiveness and efficiency of your workflows. To find the right GBS KPIs for your business, you will need to focus on the services you offer and the industry standards for those services. However, it is crucial to periodically revisit these performance metrics to make sure you can adjust to the evolving market trends and customer expectations.

Set up the correct targets

Once you have the right measures in place, the next step is to set up performance targets to measure and benchmark your performance. You can start by estimating the targets based on your past performance (up to 12 months). As you gather more data, you can also set dynamic targets based on the trends and seasonality you observe in your GBS performance.

Select a strategy to reach your goals

In an ideal world, you will have perfect scores for every metric that helps measure GBS performance. However, when dealing with end-to-end metrics, the reality is often far from perfect, and you will need to build a strategy that can help you work towards your targets. You can either set aspirational targets – setting targets above your current performance levels – or undertake a reverse analysis – focusing on achieving the highest possible target for each metric and figuring out a way to achieve those.

No matter the strategy you choose, you need to be careful to focus on end-to-end workflows – not just siloed processes – and be very deliberate when communicating each metric with different stakeholders.

Metrics to measure GBS performance

Identifying the right metrics to measure is the first – and one of the most important – steps when it comes to measuring GBS performance. Failure to identify the right metrics to measure GBS performance can mean inefficient GBS implementation and management. So, what are some of the key GBS KPIs that can help you measure and benchmark your GBS performance?

Here is a non-exhaustive list of GBS KPIs that can help you measure and enhance your operational efficiency with GBS transformation:

• Total operational cost reduction
• Overhead cost as a percentage of total costs
• Percentage of accomplished SLAs
• Number of initiatives to improve process workflows
• Percentage of automated processes
• Employee satisfaction
• Attrition rate
• Internal promotion rate
• Number of escalations per month
• Customer complaints
• Percentage of incidents resolved within SLA time
• Customer satisfaction and net promoter score

You can categorise these metrics into four categories, each focusing on different aspects of GBS performance, as follows:

• Efficiency and effectiveness: KPIs targeting overall effectiveness and efficiency of GBS implementation
• Innovation: KPIs focusing on measuring process improvements and new offerings
• People: KPIs focusing on employees and overall organisational health
• Satisfaction: KPIs targeting customer satisfaction

GBS leaders rank people and efficiency metrics highest when measuring GBS performance but, surprisingly, fail to monitor innovation metrics regularly. However, for holistic GBS management and overall operational excellence, identifying the right GBS KPIs that encompass end-to-end workflows is important.

How can Infosys BPM help with GBS transformation?

Transition to the next level with Infosys BPM digital GBS transformation by streamlining operations, reducing costs, improving service quality, and enhancing growth. Whether you want to establish a new GBS system or transform your existing shared services, our global business service model can help you with GBS strategy and implementation, as well as GBS breakthrough, to effectively monitor key GBS KPIs for effective GBS implementation and performance management.