A New Quantitative-based Performance Management Framework for Service Operations

Performance measurement system for individuals and teams are still qualitative and compliance oriented in many organizations. Therefore, most performance evaluations are considered overstated and unreliable by senior management. The new performance management method, discussed in this study, is designed and developed to measure and enhance the efficiency and effectiveness of employees, teams and business units based on the new quantitative models. In this data-driven approach, all work efforts are evaluated and converted to a comprehensive credit system, allowing us to aggregate individual outcomes using a few metrics. All employees need to pass a minimum threshold to start earning credit. The minimum threshold is a certain number of credits calculated based on a predefined participation rate. Other key metrics, including quality and risk, can be added to the system to ensure employees follow standards, restrictions and other expectations. This system improves employees' efficiency and effectiveness and it has been tested in several areas in a service industry with outstanding impacts and outcomes