KPI reporting is essential for a business as it is a clear demonstration of how effectively your company or department are meeting their objectives. There are two types of KPIs; low level and high levels.
Low level KPIs may focus on metrics like estimation times, process improvement cost per lead, customer value and quote to close ratio. On the other hand, with high level or executive KPIs they focus on the overall performance of the company with a focus on growth and financial value. KPIs can be created through a range of connectors, for example to understand your customer acquisition cost you may need to connect your financial management system and your staff tracking software. But what KPIs can we just derive from Jira. Well, we firstly need to understand what KPI the executive management want to track. The main concern affecting executives is cost, productivity, and performance. So how can we calculate this from Jira?
RFT %- Right First Time
Nothing affects cost, productivity and performance less than having to rework a product. Tracking where and why a product has failed a test allows yous to examine the root cause of any issue. You can then put in place preventative actions to reduce the time and cost of repeatedly reworking products. It may be the cause that the time given for engineers to complete a task is to restrictive therefore is being completed at a poor standard. Or is there a link between new starts and the percentage of RFT?
Unplanned Work %- Quality
Unplanned work is hard to analyse but can be a large cost to the business and ultimately affects productivity. The first protocol is to put conditions in place that allow unplanned work to be seen and measured- particularly high-risk work involving far-reaching decisions. By identifying the main time thieves that stall or block important priorities, you can then implement countermeasures to make unplanned or hidden work visible. From this, you can measure and track issues that are stealing time out of your value stream.
Work at risk (man days)
This is similar to current accounts receivable, it measures the amount of money owed to a business by its debtors. However, this work at risk looks at the amount of work on Jira that is currently in progress but the actual payment of the work will be later down the line. A company can only operate in a deficit for a certain period of time. By monitoring work at risk, it ensures a company is managing their operating cash flow. You can then compare this to the total capital employed to evaluate whether your business produces enough capital to keep the accounts positive.
Burn-down Rate (resource utilisation)
The burn-down rate is all to do with resource utilisation. It shows how quickly you and your team are burning through your customer's user stories. It shows the total effort against the amount of work they deliver each iteration. This is a helpful guide into your staffing resources, quality of work and work load. You can analyse this data with RFT to see if work that is being completed ahead of schedule is being done to a high standard. It can give the executive management a greater idea of the engineering quality of work, staffing resources and workload requirements.
Actual vs budgeted cost- cost overrun
This is achieved through assigning the budgeted cost as a percentage. So any additional work like unplanned work or an extension of a project will show as an extra cost and will be represented as a percentage. A comparison can be made between the actual costs at actual activity to budgeted costs at actual activity. This KPI provides an early warning of impending problems.
We understand the importance of seeing the bigger picture. ServiceClarity executive reporting shows the high level KPIs that your management team want to see and presents it in an accurate and visual manner.
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