Establish Kpi's

KPIs are a critical tool used in measuring and monitoring operational performance. KPIs are both used to inform those along with oversight as well as to help run day-to-day operations of the utility. They permit a utility to track progress of improvement programs and also serve as a flag for areas while service might be deteriorating and is in required of extra attention. They also permit the utility to set targets for improvement inside a given year or over the course of an improvement program. In several jurisdictions, utility performance against KPIs is a key evaluation criteria used through regulators in setting tariffs.

KPIs can be described per an internal operating standard, through international standards or a mix, as is appropriate and realistic for the utility. Although there is an endless array of potential KPIs which could be established, it is best to focus at first on a small, high level, high impact set of measures. This philosophy matches the approach we take along with operational reforms: focus on those areas which have the highest potential for improvement, generating the highest value over the shortest period of time.

In common, there are three major categories of KPIs against that performance is measured: people, kilowatt-hours, and time.

Examples of KPIs in which are meaningful in initiating and sustaining operational improvements are display in Figure. Although this is not an exhaustive list, it does give an indication of the category of measures which could be used to remain track of performance improvement progress.

                                                      Figure: Sample Key Performance Indicators

It is up to the utility to select the appropriate KPIs and add additional KPIs as it gains experience and progress. There are certain primary KPIs and other advanced KPIs. Accordingly it is proposed to choose and implement the KPIs in two stages.