Once implemented, it is important that Key Performance Indicators (KPIs) are regularly assessed and refined to ensure they are still driving outcomes. This evaluation is crucial because it ensures that KPIs are not just numbers being reported, but are actively informing decision-making, fostering accountability, and driving desired behaviors within the organisation. Ultimately, evaluating KPI implementation is important because it underpins the continuous improvement of business processes and strategies, leading to better performance, competitive advantage, and organisational success.
To effectively evaluate KPIs, the PDCA Cycle can be used. The PDCA cycle, which stands for Plan-Do-Check-Act, is a four-step methodology aimed at continuous improvement of processes and rectification of errors in business operations.
1. Plan
The “Plan” stage forms the foundation of the entire process. In this phase, the focus is on defining the problem in detail and understanding its significance. One way to do this could be using a goal setting approach. Specific, measurable, achievable, relevant, and time-bound (SMART) goals are established, with consensus from team members and stakeholders.
A comprehensive plan is then developed, addressing key considerations such as the cause of the problem, current standards, necessary resources, potential obstacles, remedial measures, deadlines, and success criteria.
2. Do
The “Do” stage is where proposed changes are tested on a small scale to minimise risk and resource expenditure. This trial phase allows for the collection of data that indicates whether the changes are effective.
3. Check
“Check” involves analysing the data to evaluate the success of the solutions against the pre-defined criteria. If the outcomes are unsatisfactory, there’s a return to the planning phase for further refinement.
4. Act
The “Act” stage is where successful changes are fully implemented. Here, questions about resource allocation, training needs, and opportunities for better measurement and maximisation are considered.
The PDCA cycle is intentionally designed to be continuous, with the idea being to repeat the cycle in order to further refine and improve the solutions. This process ensures that businesses can adapt to changes and optimise their processes over time.
The following is an example of how this could be applied to evaluate cultural competency KPIs in the organisation, however, can be adapted to address other relevant diversity and inclusion KPIs.
Plan |
Identify the Problem: A cultural competency gap was identified when three customers from diverse backgrounds reported a lack of personalised communication and cultural sensitivity in their interactions with our service team. This oversight led to a misunderstanding of their specific needs and expectations, affecting their overall satisfaction with our services. The objective of this cycle is to enhance our team’s cultural competency to better meet the diverse needs of our clientele, ensuring all customers feel understood, valued, and satisfied with our service. |
| Observe: Feedback from these customers highlighted that the generic approach in communication did not account for cultural nuances that affect customer expectations and service perception. To address their concerns, we offered personalised apologies and commitments to improve our service approach. No formal complaints were lodged. |
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| Analyse: An internal review revealed that our team lacks training in cultural sensitivity and awareness, leading to a one-size-fits-all approach in customer service. This gap in cultural competency affected our ability to engage effectively with a diverse customer base. |
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Action Plan: Develop and implement a cultural competency training program for all customer-facing staff to improve understanding and respect for cultural differences. The program will include:
Establishing metrics to evaluate the impact of training on customer satisfaction among diverse customer groups. |
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Do |
Launched the cultural competency training program, involving workshops and e-learning modules focused on enhancing cultural awareness, sensitivity, and communication skills among our team. |
Check |
Post-training evaluations indicate improved awareness and sensitivity among staff. Customer feedback in the months following the training showed an increase in satisfaction levels, particularly among those from previously underrepresented cultural backgrounds. |
Act |
With the successful implementation of the cultural competency training program and positive feedback from customers, we will expand this initiative to include ongoing training sessions. Additionally, we will integrate cultural competency standards into our regular performance evaluations and customer service protocols to maintain and build on these improvements across all customer interactions. |