Performance measurement in industrial service operations: customer and internal key performance indicators (KPIs)

Performance measurement is a cornerstone of the effective management of any business. Clearly-defined KPIs that reflect an organization's strategic goals facilitate identification of performance gaps between current and desired performance levels and form a basis for corrective and preventive management action that is instrumental for ongoing business development. Performance measures are also an effective way to demonstrate to the customers the value of the service. Current research on the topic however is lacking in performance measurement approaches that combine internal and customer perspectives. Other gaps identified in this study include strategically important aspects most of the frameworks often miss, such as safety, environment, and customer satisfaction. Also, the frameworks often only evaluate service performance from a financial perspective. This thesis contributes to the body of knowledge by mean of a case study of a large OEM and industrial services company. The study consists of theoretical and empirical parts. In the literature study, service performance measurement's role and challenges are presented as well as basic performance measurement frameworks and service KPIs. Potential influences of a context on performance measurement are reviewed as well. The empirical part of the study consists of case studies and proposed performance measurement solution. The main contributions of this study are. - Multidimensional field service performance measurement framework that facilitates service performance management by linking organization's strategic objectives and KPIs. The five service performance dimensions are: service process performance, service results, safety and environment, employee and customer satisfaction, and growth, learning and improvement. - KPIs to capture performance within each of the identified dimensions. The proposed solution is evaluated and discussed in terms of its potential to facilitate performance management at the case company and ability to demonstrate to a customer the value delivered