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Measuring Management and Support Services

December 11, 2008

The company I work for has a number of different areas of work:

Area 1: Construction
Area 2: Operation and Maintenance
Area 3: Security
Area 4: Management and Support Services
(these areas will be used frequently throughout the post)

The first three areas are pretty easy to understand and measure success and growth. The fourth area is a bit tricky.

The fourth area has a number of different elements in it including: managers, receiving, accounting, IT, customer service, and various other services. These are all very different services and can all be separated into its own business entity, however, in our case it makes sense to have them all encapsulated into one area. All of these areas support both customers

To measure the first three areas it is quite easy to measure success and growth by dollars and customer satisfaction surveys. This becomes much harder when trying to evaluate the fourth area that only supports the other areas and has no direct effect on the dollars coming in or in the handling of customers. Administration can and does, in our case, have a hand in customer satisfaction, but not to the extent that the other areas have.

Potential Methods of Measuring Management and Support Services

  1. Measure the individual groups included in the area separately. As mentioned before there are a number of different services provided in this encapsulated area. So, measure the managers, the IT people, the accountants, the customer service people, and so on. Then combine those measures together.
  2. Treating the whole area as one large group then using the other areas as barometers for growth and success. If the construction, maintenance, and security areas are growing and doing well then the administration and support services should be doing something right.
  3. Percentage of revenue. If one year the management and support area used 25% of the revenue generated by the other areas then the following year it drops to 18%, something is improving and making the company more revenue. This number can be influenced in two different ways. The first is by the construction, maintenance, and security areas bringing in more money and the second is by the management and support group becoming more efficient and/or streamlined.
  4. What do the construction, maintenance, and security people think about the management and support people. This is most likely a very hard metric to capture, but it could help to determine what can be done to improve the administration and help morale and communication in all areas.

Please note that none of these metrics can or should stand alone and determine the success and/or growth of any management and support area. Putting all of your judgment on one metric is never a good idea. Data trends and the collaboration of many different metrics will diversify and enhance the meaning of the data.

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From → business, management

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