Planning and Creating Milestones for KPI Action Plans: A Practical Guide

[sravyabandh]

Introduction

Creating action plans for underperforming supplier KPIs is a powerful feature in ServiceNow's Supplier Lifecycle Operations. However, one of the most challenging aspects is planning the right milestones—deciding how many to create, what the progression should look like, and how to account for the difficulty of improvement.

This guide provides practical strategies to help you structure effective milestone-driven action plans.

The Challenge

Example Scenario:

• Current KPI: 60%
• Target KPI: 80%
• Duration: 12 months

When creating an action plan, you need to decide:

• How many milestones?
• What should the progression look like?
• Should improvement be even or weighted?

Planning Your Milestones

Timing Options

Milestones can be placed at any interval that makes sense:

• Regular - Monthly, quarterly, yearly (e.g., Month 3, 6, 12)
• Event-based - After training, system upgrades, or key implementations
• Custom - Any combination (e.g., Month 1, 3, 6, 8, 10, 12)

Progression Strategies

Linear (Even Improvement)

Distribute improvement evenly across milestones.

Example: 60% → 80% quarterly

Milestone	Target
Q1	65%
Q2	70%
Q3	75%
Q4	80%

Use when actions are consistent with no major barriers.

Non-Linear (Weighted Improvement)

Adjust for difficulty—front-load quick wins or back-load when the final stretch is harder.

Front-loaded example:

Month	Target	Change
1	68%	8%
3	73%	5%
6	76%	3%
12	80%	4%

Back-loaded example (harder final stretch):

Month	Target	Change
3	70%	10%
6	75%	5%
9	78%	3%
10	79%	1%
11	79.50%	0.50%
12	80%	0.50%

Real Example: On-Time Delivery

Situation:

• Current: 62%
• Target: 85%
• System upgrade in months 6-8 will slow progress

Milestone Plan:

Milestone	Month	Target	Why
M1	2	68%	Quick wins: better communication
M2	4	73%	Staff training
M3	6	76%	Pre-upgrade improvements
M4	9	77%	System upgrade period
M5	11	82%	Post-upgrade optimization
M6	12	85%	Final adjustments

Creating Milestones in ServiceNow

1. Open Workspace
2. Go to Action plan items tab (If action plans is not already created create one by clicking on create action plan in the KPI management tab)
3. Click Create → Milestone
4. Select the KPI
5. Fill in:
   • Assigned to
   • Due date
   • Milestone target value
   • Collection start/end dates
6. Save
7. Repeat for each milestone

Key Rules:

• Collection periods shouldn't overlap
• End collection a few days before the due date
• Link supplier tasks to each milestone

Common Mistakes

• Too many milestones - Stick to 4-8 for a year
• Unrealistic targets - Base on actual supplier capacity
• Forgetting seasonality - Adjust for holidays, peak periods
• No follow-up - Review progress regularly

Tips

• Use the Gantt chart to visualize progress
• Adjust future milestones if needed based on actual results

Resources

• Create action plan for KPIs
• Create milestones for the action plan
• Action Plans for KPIs in Supplier Lifecycle Operations