Are you tracking Technology Key Performance Indicators?
What Technology Key Performance Indicators (KPI) are you tracking in your company? Are you tracking any? What about technology that flows throughout every part of your organization?
In 2023, certain aspects of technology in pretty much any business can be expected. There will be computers, email, a website, accounting, and created data. Those core items are ubiquitous. The industry you are in, the products you sell, or the services you offer will dictate what else is needed. And the best way to determine those needs is with Key Performance Indicators.
How to Build a Technology Budget
When it comes to the technology budget you are trying to create includes value for clients and staff, digital optimization, cybersecurity risk management, scalability for growth, stability for use, and process reduction to save costs. There are more, but you get my point.
For example: How much does it cost your company from an expense standpoint to run for an hour, a 24-hour day, or a week? Which days are more profitable? How much data is generated per user, or for the company in a day?
These numbers are critical to right-size a technology solution that solves those issues. Your technology leadership can begin making projections for the next quarter or year. If things are predictable currently but a new initiative is in the early planning stages, what is the expected impact on resources?
Can you manage expectations if you don’t grasp some of these numbers? Or are you going to wing it when something breaks and customers complain?
Include Your Most Senior Technology Staff Member
Include your most senior-level technology person in the business discussions. Have them involved to understand how the business functions and get familiar with business terminology. It will help the business immensely reduce risk, and you are grooming someone for a better, more impactful role. Plus, that person will have the most input for any technology key performance indicators to measure.
How to Start
If you are starting the process of KPI tracking, no different than any new habit, start small before getting big. Pick between 3-5 of the most important to your business KPIs. Create visuals that are easy to understand. Align the KPIs to a cost center of the business. And don’t be afraid to track subjective items. Staff satisfaction goes a long way to their satisfaction with the job and the company. And a happy staff member usually means happy clients. And we all want happy clients.
Pick 3-5 of these Technology Key Performance Indicators
Here are 25 of the Technology KPIs you should track in your technology. And if none of these apply currently to your business, figure out a couple that drives the most impact.
- Uptime: This KPI measures the percentage of time that your technology systems are available and operational.
- Mean Time to Repair (MTTR): This measures the average time it takes to repair technology failures.
- Mean Time Between Failures (MTBF): This measures the average time between technology failures.
- Service Level Agreement (SLA) Compliance: This measures the percentage of time that your technology systems are in compliance with your SLAs.
- Response Time: This measures the amount of time it takes for your technology systems to respond to user requests.
- Throughput: This measures the amount of data that your technology systems can process within a given time period.
- Latency: This measures the delay between a user request and the response from your technology systems.
- Error Rate: This measures the percentage of errors that occur within your technology systems.
- Capacity Utilization: This measures the percentage of capacity used by your technology systems.
- Network Performance: This measures the performance of your network infrastructure, including bandwidth, latency, and packet loss.
- Application Performance: This measures the performance of your software applications, including load times, response times, and error rates.
- User Satisfaction: This measures user satisfaction with your technology systems, including ease of use, reliability, and responsiveness.
- Conversion Rate: This measures the percentage of users who take a desired action on your website or mobile app.
- Click-Through Rate (CTR): This measures the percentage of users who click a specific link or button on your website or mobile app.
- Bounce Rate: This measures the percentage of users who leave your website or mobile app without taking any further action.
- Retention Rate: This measures the percentage of users who continue to use your website or mobile app over time.
- Churn Rate: This measures the percentage of users who stop using your website or mobile app over time.
- Cost per Acquisition (CPA): This measures the cost of acquiring a new customer through your website or mobile app.
- Customer Lifetime Value (CLTV): This measures the total value of a customer over their entire relationship with your business.
- Net Promoter Score (NPS): This measures the likelihood that a customer would recommend your business to others.
- Customer Satisfaction (CSAT): This measures customer satisfaction with your products or services.
- Average Handle Time (AHT): This measures the average amount of time it takes to handle a customer inquiry or issue.
- First Call Resolution (FCR): This measures the percentage of customer inquiries or issues resolved on the first call.
- Agent Utilization: This measures the percentage of time that your customer service agents are actively engaged in handling customer inquiries or issues.
- Average Speed of Answer (ASA): This measures the average time it takes for a customer service agent to answer a call or respond to a chat or email inquiry.
Tracking these KPIs can help you identify areas of improvement in your technology systems and make data-driven decisions to optimize performance and enhance the user experience.
If you need assistance creating more value with your technology. Click this link and schedule a call to discuss how I can help. What gets measured gets improved.
MBA | PMP | CISSP