past and present | 25 years of service desk kpis
TRANSCRIPT
Past and Present
25 Years of Service Desk KPI’s
Jeff Rumburg
Your Speaker: Jeff Rumburg
© 2015 MetricNet, LLC, www.metricnet.com
Co Founder and Managing Partner,
MetricNet, LLC
Winner of the 2014 Ron Muns
Lifetime Achievement Award
Former CEO, The Verity Group
Former Vice President, Gartner
Founder of the Service Desk
Benchmarking Consortium
Author of A Hands-On Guide to
Competitive Benchmarking
Harvard MBA, Stanford MS
2
27 Years of IT Service and Support Benchmarking Data
More than 3,000 IT Service and Support Benchmarks
Global Database
70+ Key Performance Indicators
More than 120 Industry Best Practices
3© 2015 MetricNet, LLC, www.metricnet.com
The Premise Behind Service Desk KPI’s
We’ve all heard the expression…
“If you’re not measuring it, you’re
not managing it!”
But there’s more to the story…Lots more!
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Business
Effectiveness
ROI
5
Service Desk KPI’s Through the Decades
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1970’s 1980’s 1990’s 2000’s2010-
2015
2015 &
Beyond
Bag & Tag
Log &
Dispatch
Service Levels
The Rise of
Quality
Metrics
Renaissance
Cause & Effect
Process
Metrics
TCO
Service and
Support as a
Business
Discipline
6
1970’s: Metrics…What Metrics?
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7
1980’s: Service Levels, Quality and AHT
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Service LevelQuality
Average Speed of
Answer (ASA)
Call Abandonment Rate
Customer Satisfaction
Call Quality
Call Handling
Average Call Handle
Time
ASA Drives Cost per Contact
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
0 50 100 150 200 250
Average Speed of Answer (sec)
Co
st
per
Co
nta
ct
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Call Abandonment Rate Also Drives Cost per Contact
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
Call Abandonment Rate
Co
st
pe
r C
on
tac
t
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ASA vs. Customer Satisfaction
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0 5% 10% 15% 20%
ASA as a % of Total Handle Time
Cu
sto
mer
Sati
sfa
cti
on
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Call Abandonment Rate vs. Customer Satisfaction
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Call Abandonment Rate
Cu
sto
mer
Sati
sfa
cti
on
11© 2015 MetricNet, LLC, www.metricnet.com
1990’s: A Metrics Renaissance
Cost per Contact
Cost per Minute of Handle
Time
Cost Productivity
Service Level
Quality
Call HandlingAgent
Average speed of answer
(ASA)
Call abandonment rate
% Answered within 30
Seconds
Average hold time
Average time to abandon
Percent of calls blocked
Contacts per Agent per Month
Agent Utilization
Agents as % of Total Service Desk Headcount
Customer Satisfaction
Call Quality
First Contact Resolution
Rate
Agent Occupancy
Schedule Adherence
Annual Agent Turnover
Daily Absenteeism
New Agent Training Hours
Annual Agent Training
Hours
Agent Tenure
Agent Job Satisfaction
Average Handle Time
User Self-Help Rate
IVR completion Rate
Percent of calls
transferred
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Widespread Reporting, Tracking, and Trending
80%
65%
$17.00
AGENT UTILIZATION
J F M A M J J A
FIRST CONTACT RESOLUTION
J F M A M J J A
COST PER CONTACT
J F M A M J J A
CUSTOMER SATISFACTION
J F M A M J J A
5%
80%
90%
CALL ABANDONMENT
J F M A M J J A
BALANCED SCORE
J F M A M J J A
COST PER CONTACT CUSTOMER SATISFACTION
FIRST CALL RESOLUTION RATEAGENT UTILIZATION
AGENT SATISFACTION CALL ABANDONMENT RATE
13© 2015 MetricNet, LLC, www.metricnet.com
Agent Utilization Drives Cost per Contact
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
20% 30% 40% 50% 60% 70% 80%
Agent Utilization
Co
st
per
Co
nta
ct
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First Contact Resolution Drives Customer Satisfaction
20%
40%
60%
80%
100%
20% 40% 60% 80% 100%
First Contact Resolution
Cu
sto
me
r S
ati
sfa
cti
on
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New Agent Training Hours vs. First Contact Resolution
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 50 100 150 200 250 300 350
New Agent Training Hours
Fir
st
Co
nta
ct
Res
olu
tio
n R
ate
16© 2015 MetricNet, LLC, www.metricnet.com
Annual Agent Training vs. First Contact Resolution
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 20 40 60 80 100 120 140
Annual Agent Training Hours
Fir
st
Co
nta
ct
Res
olu
tio
n R
ate
17© 2015 MetricNet, LLC, www.metricnet.com
Service Desk KPI’s: Cause-and-Effect
Cost/Contact Customer Satisfaction
Agent
Utilization
First
Contact
Resolution
Agent
Satisfaction
Coaching Career Path Training Hours
Call
Quality
Handle
Time
Agents/
Total FTE’s
Absenteeism/
Turnover
First Level
ResolutionScheduling
Efficiency
Service Levels:
ASA and AR
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The Dilemma with Metrics in the 1990’s
Lots and Lots of Data
But not enough analysis…
Not enough Insight…
And not enough Action!!
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The 2000’s: The Holistic Use of KPI’s
The Historical Approach The Holistic Approach
Measurement
(75%)
Analysis
(15%)
Prescription
(7.5%)
Action
(2.5%)
Measurement
(5%)
Analysis
(20%)
Prescription
(30%)
Action
(45%)
Inc
rea
sin
g V
alu
e!
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Unleashing the Enormous Power of Service Desk KPI’s
The Central Question of the Early 2000’s…
How do we turn Service Desk KPI’s
into a Competitive Advantage?
Better…Faster…Cheaper!
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The World-Class Service Desk Defined
Service Desk consistently exceeds customer expectations
Result is high levels of customer satisfaction
Call quality is consistently high
Costs are managed at or below industry average levels
Cost per contact below average
Minimizes Total Cost of Ownership (TCO)
Service Desk follows industry best practices
Industry best practices are defined and documented
Service Desk follows industry best practices
Every transaction adds value
A positive customer experience
Drives a positive view of IT overall
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Cost per Contact HigherLower
HigherA World-Class Service Desk
An “Average” Service Desk
BEST-IN-CLASS
PERFORMANCE CURVE
AVERAGE PERFORMANCE CURVE
The World-Class Service Desk Defined
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24
Performance of
Benchmarking Peer
Group
Determine How Best in Class
Achieve Superiority
Adopt Selected Practices of
Best in Class
Build a Sustainable Competitive Advantage
The ultimate
objective of
benchmarking
The Widespread Adoption of Benchmarking
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COMPARECapital Group
Desktop Support
Performance
The Goal of Benchmarking
Cost per Ticket HigherLower
HigherBEST-IN-CLASS
PERFORMANCE CURVE
AVERAGE PERFORMANCE CURVE
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AFTER BENCHMARKING
STARTING POINT: BEFORE
BENCHMARKING
The 80/20 Rule for Service Desk KPI’s
Cost per ContactCost
Productivity
Quality
Call Handling
Agent Utilization
Customer Satisfaction
First Contact Resolution Rate
Agent Agent Job Satisfaction
Read MetricNet’s whitepaper on Service Desk Performance Metrics. Go to www.metricnet.com to get your copy!
Aggregate Balanced Scorecard
TCO First Level Resolution Rate
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Cost of Resolution: North American Averages
Support Level Cost per Ticket
Vendor
Level 2: Desktop Support
Field Support
Level 3 IT
(apps, networking, NOC, etc.)
Level 1: Service Desk
$471
$196
$85
$62
$22
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Shift Left Reduces Total Cost of Ownership
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Aggregate Metrics: The Balanced Scorecard
Step 1
Six critical
performance
metrics have been
selected for the
scorecard
Step 2
Each metric has been
weighted according to its
relative importance
Step 3
For each performance metric,
the highest and lowest
performance levels in the
benchmark are recorded
Step 4
Your actual
performance for
each metric is
recorded in this
column
Step 5
Your score for each
metric is then calculated:
(worst case – actual
performance) / (worst
case – best case) X 100
Step 6
Your balanced score for each
metric is calculated: metric
score X weighting
29
Worst Case Best Case
Cost per Contact 25.0% $55.28 $9.15 $21.83 72.5% 18.1%
Customer Satisfaction 25.0% 63.7% 97.5% 77.2% 39.9% 10.0%
Agent Utilization 15.0% 30.9% 64.4% 47.0% 48.0% 7.2%
Net First Contact Resolution Rate 15.0% 51.8% 87.5% 70.2% 51.4% 7.7%
Agent Job Satisfaction 10.0% 53.5% 91.5% 73.4% 52.4% 5.2%
Average Speed of Answer 10.0% 192 13 60 73.5% 7.3%
Total 100.0% N/A N/A N/A N/A 55.6%
Performance RangeMetric
WeightingPerformance Metric
Balanced
Score
Your
Performance
Metric
Score
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Benchmarking Your Overall Performance
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Ba
lan
ced
Sc
ore
s
High 86.5%
Average ----- 50.3%
Median 50.3%
Low 13.8%
Your Score 55.6%
Balanced Scores
Key Statistics
30© 2015 MetricNet, LLC, www.metricnet.com
The Service Desk Performance Trend
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Se
rvic
e D
es
k B
ala
nc
ed
Sc
ore
12 Month Average Monthly Score
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2010 – 2015: Metrics as a Foundation Block
METRICS
PEOPLE
PROCESS
TECH
32© 2015 MetricNet, LLC, www.metricnet.com
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 3 4 5
Metrics Maturity Ranking
Deskto
p S
up
po
rt B
ala
nced
Sco
re
The Evidence for Metrics as a Foundation Block
n = 143Se
rvic
e D
es
k B
ala
nc
ed
Sc
ore
card
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KPI’s for The Emergence of Lower Cost Channels
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
6 Months 1 Year 2 Years 3 Years 5 Years
Time from Implementation
% o
f A
ll C
on
tacts
% Live Agent
% IVR
% Web Chat
% Web Self-Service
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35
The Paradox of IT Support
Less than 5% of all IT spending is
allocated to end-user support
Service desk, desktop support,
field support
This leads many to erroneously
assume that there is little upside
opportunity in IT support
The result is that most support
organizations are managed with the
goal of minimizing costs
But the most effective support
strategies focus on maximizing
value
© 2015 MetricNet, LLC, www.metricnet.com
Corporate IT Spending Breakdown
4%
96%: Non support functions
End-User Support
Application
Development
Application
Maintenance
Network
Operations
Mainframe and
midrange Computing
Desktop Computing
Contract Services
(e.g., disaster
recovery)
The First ROI Methodology Published
ROI =Return
Investment=
Savings
Spending
ROI is a simple ratio
It requires quantification of Return (Savings), and Investment
(Spending)
It is measured over a one-year timeframe (One Year ROI is
implied in the metric)
It is one of the most widely used and accepted financial metrics
It can be used prospectively, as part of a Business Case
Analysis
…Or retrospectively to evaluate the past business success
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37
The Emergence of Service Desk as a Value Center
Responsible for cost control
Not responsible for…
Revenue generation
Profits
Investment decisions
Cost Center Value Center
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VS.
Creates value
Demonstrates value
Cost savings
Cost Benefit Analysis
ROI Analysis
The vast majority of service and support organizations operate as cost centers
They are expected to control costs, but are not expected to make any explicit financial
contribution to the enterprise
The focus in a cost center is on minimizing costs
The focus in a Value Center is on maximizing value!
The industry megatrend now is on creating and demonstrating economic value
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Exploit Value
Metrics Focused
Proactive
Marketing
2015 and Beyond: Service and Support as a Business
Shift Left Reduces Total Cost of Ownership
39© 2015 MetricNet, LLC, www.metricnet.com
40
0
10
20
30
40
50
60
70
0 1 2 3 4 5
Pro
du
cti
ve H
ou
rs L
ost
per
Em
plo
yee p
er
Year
Quality of Support Drives End-User Productivity
1 (top) 2 3 4 (bottom)
Customer Satisfaction 93.5% 84.5% 76.1% 69.3%
First Contact Resolution Rate 90.1% 83.0% 72.7% 66.4%
Mean Time to Resolve (hours) 0.8 1.2 3.6 5.0
Customer Satisfaction 94.4% 89.2% 79.0% 71.7%
First Contact Resolution Rate 89.3% 85.6% 80.9% 74.5%
Mean Time to Resolve (hours) 2.9 4.8 9.4 12.3
Service Desk
Desktop Support
Performance QuartileSupport Function Key Performance Indicator
37.4 46.9Average Productive Hours Lost per Employee per Year 17.1 25.9
Performance Quartile n = 60
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A Proactive Culture Aided by Metrics
Some Common Proactive Behaviors
Root Cause Analysis / Closed Ticket Analysis
Marketing / Brand Management
Business Case Analysis for New Investments
Benchmarking
Goal-based Training
Cause-and-Effect Decision-making
Manage Agent Morale / Agent Job Satisfaction
Agent Scorecards
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The Role of Marketing in IT Support
We’ve all heard the expression…
“Expectations Not Set…
are Expectations Not Met!
So, let’s get serious about proactively managing
expectations!
43© 2015 MetricNet, LLC, www.metricnet.com
Perception vs. Reality in IT Support
LOWER COST HIGHERACTUAL VALUE
PE
RC
EIV
ED
VA
LU
E
HIGHER
LOWER
Perceived Value > Actual Value
Perceived Value < Actual Value
Perception Is Almost Always Worse Than the Reality
LOWER COST HIGHERACTUAL VALUE
PE
RC
EIV
ED
VA
LU
E
HIGHER
LOWER
Perceived Value > Actual Value
Perceived Value < Actual Value
A Common (but
Dangerous) Operating
Position
44© 2015 MetricNet, LLC, www.metricnet.com
Brand Management in IT Support
LOWER COST HIGHERACTUAL VALUE
PE
RC
EIV
ED
VA
LU
E
HIGHER
LOWER
Perceived Value > Actual Value
Perceived Value < Actual Value
#1 Operational
Effectiveness
#2 B
ran
d
Man
ag
em
en
t
45© 2015 MetricNet, LLC, www.metricnet.com
Closing the Perception Gap
LOWER COST HIGHERACTUAL VALUE
PE
RC
EIV
ED
VA
LU
E
HIGHER
LOWER
Perceived Value > Actual Value
Perceived Value < Actual Value
Closing
the
Perception
Gap
Where you Should Be
Where you Are
46© 2015 MetricNet, LLC, www.metricnet.com
47© 2015 MetricNet, LLC, www.metricnet.com
Brand Management: The Five W’s
1. Who – Who are the Key Stakeholder Groups?
2. What – What are the Key Messages?
3. When – When are You Going to Communicate Them?
4. Where/How – Where/How do You Reach the Stakeholders?
5. Why – Why are We Doing This?
Key Success Factors in Marketing IT Support
MessagesTim
ing
Timing
Frequent Contact
• New employee orientation
• At session log-in
• During training
• During the incident
• At scheduled sessions
Messages
Multiple Messages
• Services
• Major initiatives
• Performance Levels
• FAQ’s
• Success Stories
Channels
Use All Available
• Log-in messages
• Newsletters
• Reference Guides
• Asset tags
• Surveys
• User Liaisons
Tim
ing
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49© 2015 MetricNet, LLC, www.metricnet.com
The Most Common Communication Vehicles
Where is IS failing to meet XXX needs?
Rank Fails Survey Question
1 - 22.1% 24. Availability of shared resources
2 - 16.2% 30. Your satisfaction with remote access services
3 - 14.7% 17. Continue using the IS Support Center
4 - 13.2% 28. Overall satisfaction with computing/network services
5 - 11.8% 21. The response to requested software changes
5 - 11.8% 29. Satisfaction with the current E-Mail services
7 - 10.3% 09. Current services provided by IS
8 - 8.8% 19. Developers understand your business requirements
9 - 8.8% 23. Reliability of business applications
10 - 7.4% 08. IS communication of products and services
10 - 7.4% 22. The response to requested enhancements
12 - 4.4% 07. IS value compared to the cost of services
12 - 4.4% 14. Value of IS Business Consultants
12 - 4.4% 20. Responsiveness to application maintenance requests
15 - 2.9% 12. Acquisition process for IT
15 - 2.9% 18. Applications provide the necessary functionality
12%
Avg.
2.9 % of XXX’s said issue18. failed to meet expectations.
Mean
for ALL
“fails”
Sort field
sequence
field
varriance
duplicate rank
Title of List
above
average
below
average
Selected Issues
NewslettersBrown Bag
SessionsLeave Behinds
Business Unit
Liaisons
Surveys Log-in Screens Webcasts FAQ Site
50© 2015 MetricNet, LLC, www.metricnet.com
Messaging Summary
Managing the gap between perception and reality is fairly
straightforward
It doesn’t take a lot of time, or cost a lot of money
But it is critically important
The success of your support organization depends as much on your
image, as it does on your actual performance!
The Benefits of effective Internal Marketing include:
The Opportunity to convey your value proposition!
Customer loyalty and positive word-of-mouth referrals
Credibility, which leverages your ability to Get Things Done!
A Positive Image for IT overall
High levels of Customer Satisfaction
© 2015 MetricNet, LLC, www.metricnet.com 51
So Why Are We Doing This?
84%
47%
31%29%
22%19%
8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Service Desk Desktop
Support
Network
Outages
VPN Training Enterprise
Applications
Desktop
Software
Factors Contributing to IT Customer Satisfaction
% S
ayin
g V
ery
Im
po
rtan
t
n = 1,044
Global large cap companies
Survey type: multiple choice
3 responses allowed per survey
84% cited the service desk as a very important factor in their overall satisfaction with corporate IT
47% cited desktop support as a very important factor in their overall satisfaction with corporate IT
Support Drives Customer Satisfaction for All of IT
52© 2015 MetricNet, LLC, www.metricnet.com
Questions?
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Thank You!
Questions?
About MetricNet
Your Benchmarking Partner
57
Your Speaker: Jeff Rumburg
© 2015 MetricNet, LLC, www.metricnet.com
Co Founder and Managing Partner,
MetricNet, LLC
Winner of the 2014 Ron Muns
Lifetime Achievement Award
Former CEO, The Verity Group
Former Vice President, Gartner
Founder of the Service Desk
Benchmarking Consortium
Author of A Hands-On Guide to
Competitive Benchmarking
Harvard MBA, Stanford MS
58
Benchmarking is MetricNet’s Core Business
Call Centers
Telecom
Information
Technology
Satisfaction
Customer Service
Technical Support
Telemarketing/Telesales
Collections
Service Desk
Desktop Support
Field Support
Price Benchmarking
Customer Satisfaction
Employee Satisfaction
59© 2015 MetricNet, LLC, www.metricnet.com
27 Years of IT Service and Support Benchmarking Data
More than 3,000 IT Service and Support Benchmarks
Global Database
70+ Key Performance Indicators
More than 120 Industry Best Practices
60© 2015 MetricNet, LLC, www.metricnet.com
Meet a Sampling of Our Clients
MetricNet Conducts benchmarking for IT Service and Support
organizations worldwide, and across virtually every industry sector.
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