Page 287 - Performance Leadership

276 • Part IV Implementing the Performance Leadership Framework

F igur e 15.2
Key Performance Indicators for Triple-Play Installations in Telecom

Faster

Order to
Fulfillment

Right First Customer
Time Cost

Better Cheaper

cost are crucial and key differentiators in a hypercompetitive market
(see Figure 15.2).
Within the three performance indicators in Figure 15.2, the most
important driver of trust is the right-first-time percentage, how many
installations succeed without any mistakes. Although each department
may independently achieve its service level of, say 95 percent, a com-
bination of that service level across five departments leads to an overall
score of not more than 77 percent (0.95 to the power of 5). And if only
one department scores 60 percent for one month, the overall result
immediately drops dramatically to 48 percent. This leads to more rework
and more delays, negatively affecting the second crucial performance
indicator: order fulfillment time. This is the time that it takes between
a customer ordering the service and its being operational at the cus-
tomer’s address. Also, the need for several service people drives the cost
of the service up. Every set of balanced performance indicators tracks
cost, quality, and time, and a disconnected process makes a telecom
score bad on all three.