past and present | 25 years of service desk kpis

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!


Business

Effectiveness

ROI

5

Service Desk KPI’s Through the Decades


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?


7

1980’s: Service Levels, Quality and AHT


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


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%


Co

st

pe

r C

on

tac

t


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


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%


Cu

sto

mer

Sati

sfa

cti

on


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


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


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


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


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


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


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


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


The Dilemma with Metrics in the 1990’s

Lots and Lots of Data

But not enough analysis…

Not enough Insight…

And not enough Action!!


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!


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!


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


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


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


COMPARECapital Group

Desktop Support

Performance

The Goal of Benchmarking

Cost per Ticket HigherLower

HigherBEST-IN-CLASS

PERFORMANCE CURVE

AVERAGE PERFORMANCE CURVE


AFTER BENCHMARKING

STARTING POINT: BEFORE

BENCHMARKING

The 80/20 Rule for Service Desk KPI’s

Cost per ContactCost

Productivity

Quality

Call Handling

Agent Utilization


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


http://www.metricnet.com/

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


Shift Left Reduces Total Cost of Ownership


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


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


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


2010 – 2015: Metrics as a Foundation Block

METRICS

PEOPLE

PROCESS

TECH


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


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

% Email

% IVR

% Web Chat

% Web Self-Service


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


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


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


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


Exploit Value

Metrics Focused

Proactive

Marketing

2015 and Beyond: Service and Support as a Business

Shift Left Reduces Total Cost of Ownership


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


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



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!


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


PE

RC

EIV

ED

VA

LU

E

HIGHER

LOWER



A Common (but

Dangerous) Operating

Position


Brand Management in IT Support


PE

RC

EIV

ED

VA

LU

E

HIGHER

LOWER



#1 Operational

Effectiveness

#2 B

ran

d

Man

ag

em

en

t


Closing the Perception Gap


PE

RC

EIV

ED

VA

LU

E

HIGHER

LOWER



Closing

the

Perception

Gap

Where you Should Be

Where you Are



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



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


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

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


Questions?

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Thank You!

Questions?

About MetricNet

Your Benchmarking Partner

57

Your Speaker: Jeff Rumburg


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


Employee Satisfaction


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


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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