Shared Services KPIs, Metrics & Benchmarks

KPIs & Metrics to Measure and Manage Shared Services Performance

What are Shared Services KPIs?

Shared Services KPIs measure efficiency, cost-effectiveness and customer service within centralized shared services centers. Shared services centers are centrally-located facilities that provide administrative support for the business. Because these centers are typically developed to reduce costs and improve internal service levels, shared services metrics center around measuring the benefits (productivity, cost, quality and service) of centralizing functions such as payroll, accounts payable, recruiting, procurement and others.

Using KPIs to Manage and Improve Shared Services Centers

Much like an automotive assembly line, many of the business processes that take place within a typical shared service center are repetitive and transactional (e.g., invoice processing, vendor on-boarding, payroll processing, billing, etc.). Tasks of this nature can be measured using manufacturing-style KPIs. Shared services metrics typically measure things like throughput (unit-based productivity, by employee), error rates, cycle times and automation levels for these transactional processes.

The Top 5 Metrics for Measuring Shared Services Performance

Shared Services KPIs should measure the unit-based productivity and cost, as well as rework and customer service levels for the processes carried out within the shared services area. These 5 assembly-line-style metrics are applicable to most shared services centers:

  1. 1.Invoice Error Rate
  2. 2.Number of Invoices Processed per Employee
  3. 3.Cost per Invoice (Manual vs. Straight-through)
  4. 4.Vendor On-Boarding Cycle Time
  5. 5.Customer Billing Error Rate

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