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Using ITSM to Increase IT Customer Satisfaction

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“Stop doing. Stop talking. And Listen. What do your customers think of you and your services?” - Stephen Mann


During our recent webinar, Stephen Mann talked about how organizations can use ITSM to better serve their customer needs and expectations. Stephen answered a number of questions that IT people should ask about their business user focus:
- Why do 71% of CEOs see technology as the most critical external force affecting their
firms?
- Why do business users rate the performance of IT lower than IT does?
- Is IT performance measured in a way that is meaningful to the business?
- What can we do to increase business user satisfaction?

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  • Stepping back from IT activities, ITIL-espoused process, and the enabling ITSM technology, and pardon my buzzword bingo on screen …The changing business and IT landscapes bring increasing demand for IT (or IT services) AND increasing complexity. You could also include Mobile and other hot topics … but hopefully this paints a picture of increasing complexity and impending capability gulf if it isn’t already here.My personal view is that IT organizations are faced with a number of IT service delivery challenges that they may or may not be aware of and addressing …
  • The important thing is to ask yourself:“How many of these are we considering and addressing?”“Are we too focused on IT complexity?”AND“Are we looking at these in isolation?” AND “For #3 are we looking at these areas from a technology not a business POV”Unfortunately it’s a jigsaw where many IT organizations can’t see the picture on the front of the box … it should be a picture of your business and your customers!
  • From a people, and performance management perspective – let’s compare IT operations to pizza delivery operations ...The pizza company has a palatial store and has invested in the best catering equipment (read state-of-the-art data center). It employs highly-qualified chefs who take pride in creating culinary masterpieces. When the pizza leaves the store it scores ten out of ten on the internal measurement system. This is, however, measuring at the point of creation rather than the point of consumption.Now consider the customer view of the pizza when it arrives: it is late, cold, has too much cheese, the wrong toppings (even toppings that are unrecognizable to the customer), and it costs more than the customer expected (and wanted) to pay.We often do the same in IT – we look at how we perform from the inside rather than from the outside. I’ll come back to this later.
  • From a technology perspective …People want and expect more from their ITSM tools. It’s no longer so much about ITIL-espoused process support, it’s becoming more about customer or business-outcome support.BUT is it really the tools or is it how we are using the tools?Are we too focused on what we do rather than what we achieve through doing what we do? And on top of this are we too focused on fixing broken technology rather than ensuring end-users (or our internal customers) are happy with the IT services we provide them with?Whether you want to label what we should be doing as:Customer-centricityOutside-in thinkingFocusing on positive business outcomes ORDemonstrating business valueThe bottom line for me is that IT service delivery organizations need to look at what they do through a different lens.
  • Business priorities become IT driversQuick review of driver and effect
  • Let’s consider what ITSM is.Is the ITIL definition still relevant? In some ways yes but in others no. Are we meeting the needs of the business? I refer you back to the slide plotting IT and business perceptions if you think the answer is a resounding yes.I like the Wikipedia definition that I think was created by Charlie Betz who is worth looking up online, BUT the USMBOK definition from Ian Clayton is the one that really resonates with me – we are now talking customers and we are talking outcomes. It’s definitely a more modern and more fitting definition of where ITSM ought to be.
  • While I have made this look to be a linear progression it doesn’t have to be. The important thing is to think about where your organization is – are you still technology-centric despite having invested in ITIL training, new processes, and a fit-for-purpose ITSM tool? Do you really only have one foot in the ITIL camp having adopted the common processes but none of the service-based mentality? Are you really too focused on the technology over IT service delivery and meeting customer needs?BTW I’m not saying ITIL is broken, just that we are not using it to our best advantage. We are placing too much emphasis on the reactive processes and not enough on the delivery of high quality IT services.We do too much looking in and unsurprisingly we struggle to communicate or demonstrate the value the annual investment in IT delivers to the business.
  • Business priorities become IT driversQuick review of driver and effect
  • This slide is a bit of fun but I couldn’t be more serious about business value.I’ll pause for a second for you to think how your IT organization delivers and then demonstrates business value. It is still an issue for most of us.
  • So what can you do to help demonstrate business-value?Working out what “value” is, from a business or customer NOT and IT perspective, is obviously important, and so is understanding how what we do in IT and with ITSM maps to these value elements and how we can increase business-value over time.
  • An important point here is that I’m not talking about the IT until I get down to QoS – it’s all about how IT is deliver for the business and business colleagues. These aren’t just end users and stakeholders they are your customers. I’ll repeat that, they are your customers.Yes there are many arguments as to whether they are consumers rather than customers but ask yourself this … are we sending them customer satisfaction questionnaires? Probably yes.Are there more and more opportunities for them to get their IT from elsewhere, say BYOD, service providers, or SaaS-delivered services? So they can take their business or custom elsewhere? They are probably your customers then.
  • So hopefully having convinced you that your business colleagues are customers, let’s have a little more serious fun.BUT ITSM and the use of best practice frameworks and fit-for-purpose ITSM tools does make a big difference to both IT operations and the business …
  • So start thinking about the consumption not the creation of your IT services.Your IT is not the end, it is merely a means to an end. A business-defined end.
  • I’ve already referred to USMBOK and the work of Ian Clayton and colleagues such as Ken Gonzalez. I could easily spend 30 minutes talking about their Outside-in work.Instead I’d rather pose you a handful of their questions lifted from the USMBOK to get you thinking about looking at IT from a different POV … the customer’s POV.It’s a shame you can’t shout out your answers. I’d also be interested in the responses if you asked these questions to a sample of your IT colleagues back at the ranch.It is all to easy to think we work in IT rather than for a company that makes and sells widgets.So thinking outside the data center is important but we need to do more that think. We also need to change the way in which we work.
  • So it’s good to talk with and listen to customers, it’s good to think about business outcomes BUT something else needs to change and it needs to change quickly … your KPIs or metrics, and how you gauge your relative level of success.Again I could talk at length just on metrics and the common mistakes we make …
  • <<I’ll pick out a couple here but focus on #4>>1. Metrics for metrics sake. We often create metrics because we feel that we "should" rather than because we have definite reasons to capture and analyze data and consider performance against targets. Then metrics are commonly viewed as an output in their own right. Far too many I&O organizations see metrics as the final output rather than as an input into something else, such as business conversations about services or improvement activity. The metrics become "a corporate game" where all that matters is that you've met or exceeded your targets. But what value actually comes from meeting the targets? 3. We measure things because they're easy to measure, not because they're important. I&O organizations shouldn't spend more time collecting and reporting metrics than the value we get from them, but that still isn't an excuse to just measure the easy stuff. Consider why you report each and every metric in your current reporting pack and assess the value they provide versus the effort required to report them. Not only will you find metrics that you report on just because you can, you will also find metrics that are "expensive" to provide but provide little or no value.4. I&O can easily fall into the trap of focusing on IT rather than business metrics. There is often a disconnect between IT activity and performance and business objectives, demands, and drivers. So consider your existing metrics from a business perspective: What does the fact that there are 4,000 incidents per month actually mean? From an SMA perspective, it might mean that we've been busy or that it's 10% lower (or higher) than the previous month. But is the business actually interested in incident volumes? If it is, does it interpret that as "You make a lot of mistakes in IT" or as "You've prevented the business working 4,000 times this month"? Ask key business stakeholders how they measure or perceive I&O and IT performance, then tailor your metrics for them.Let’s look at some common ITSM metrics …
  • It’s cringe-worthy in my opinion.Also consider the fact that incident volumes have dropped … It’s a great success, right? Well not if people are self-helping because the IT service desk is so poor at IT support and customer service – people are avoiding or circumventing you.So metrics need to be balanced …
  • Use a best practice approach to get a balanced approach to performance measurement such as the 20-year old Balance Scorecard approach.Try to move out of the bottom left … particularly into the top right.You might also want to push the proverbial envelope and consider customer experience …
  • My Forrester customer experience colleagues also use Net Promoter Score for measuring customer outcomes ...
  • Net Promoter Score 101 (bullets taken from previous slide to compress the deck)"Net Promoter Score" is a customer loyalty metricAimed at motivating organizations to become more focused on improving products and services for customersBased on "likelihood to recommend" NOT applicable to I&O as users (internal customers) don’t recommend us to each other but the scoring mechanism is interesting as it penalizes poor performance ...So subtract the detractors from the promoters to get your NPS. Scores range from = +100 to -100 and a score of >50 is considered very good.So what if we used this scoring system to gauge how our internal customers perceive us as service providers? An example would be to look at a critical success factor for providing IT services – say maximizing user productivity.So maybe we could use a question or statement like:"IT provides me with the tools and services I need to do my job effectively"We would have to change axes but to me it is a starting point for a measurement that looks at how well we are really doing in term of customer outcomes. Anyway, it’s a germ of an idea that I hope to pan out with a number of my Forrester colleagues and any clients that wish to get involved.
  • Business priorities become IT driversQuick review of driver and effect
  • Business priorities become IT driversQuick review of driver and effect

Transcript

  • 1. Axios Systems Webinar“Using ITSM to Increase Business User Satisfaction and the Perception of IT” The Webinar will start shortly Stephen Mann Joe Beighley Senior Analyst, Forrester Research, Inc Business Solutions Consultant, Axios Systems 40 Minute Presentation. Facilitator and Q&A Join the LinkedIn Conversation: j.mp/XX4hzt Or search LinkedIn Groups: “How to Increase IT Customer Satisfaction” #ITsatisfaction im@axiossystems.com Blog.axiossystems.com @Axios_Systems Axios on LinkedIn 1
  • 2. Axios Systems Webinar“Using ITSM to Increase Business User Satisfaction and the Perception of IT” Stephen Mann Joe Beighley Senior Analyst, Forrester Research, Inc Business Solutions Consultant, Axios Systems 40 Minute Presentation. Facilitator and Q&A Join the LinkedIn Conversation: j.mp/XX4hzt Or search LinkedIn Groups: “How to Increase IT Customer Satisfaction” #ITsatisfaction im@axiossystems.com Blog.axiossystems.com @Axios_Systems Axios on LinkedIn 2
  • 3. Coverage Scene setting – where are we now? The rising importance of “the customer” and “business value” Using ITSM to better serve and meet customer needs (and expectations) Customer-centricity and Outside-In Recommendations© 2012 Forrester Research, Inc. Reproduction Prohibited
  • 4. Scene setting – where are we now? And are we adding sufficient business value?© 2012 Forrester Research, Inc. Reproduction Prohibited 4
  • 5. CEOs See Technology As The Most Critical External Force Affecting Their Firms
  • 6. IT’s Self-Assessment Is More Positive Than Business Executives’ View Of IT 6May 2012 “Forrsights: Business Execs Increase Direct IT Spend To Support Systems Of Engagement”
  • 7. The latest big disruption = complexity Increasing Consumerization customer demand and Cloud expectations Social MediaManualAbility Virtualization Accelerant 2007 2008 2009 2010 2011 2012
  • 8. Key IT Service Delivery Challenges: High-Level View #1 Increased • IT cost transparency and value Business Scrutiny demonstration. #2 Increased • Agility, availability, “hardware,” and Business Expectations support and customer service. #3 Increased • Cloud per se, mobility, and governance. Business and IT ComplexitySource: http://blogs.forrester.com/stephen_mann/11-12-16-top_10_it_service_management_challenges_for_2012_more_emphasis_on_the_service_and_the_management
  • 9. Are our people technology-centric & is IT success measured at the wrong point?Image source: http://3.bp.blogspot.com/-dYwHjcPte6Y/T4qaHCT-EtI/AAAAAAAAPiY/hheYWCAvixE/s320/pizza.jpg
  • 10. 2012 ITSM process maturity By Current State, Least Mature By Desired State, Most Mature c c * Maturity results collected from 40 VPs of IT infrastructure and operations at +$1b corporations.© 2012 Forrester Research, Inc. Reproduction Prohibited
  • 11. Service desk vendor satisfaction is dropping What is your current state with service desk? Major 69% 32% 68% Vendors 31% Smaller 71% 41% 59% Vendors 29% 96% SaaS 14% 86% 4% 71% Homebrew 36% 63% 29% N=178© 2012 Forrester Research, Inc. Reproduction Prohibited Source: Forrester/itSMF USA ITSM Survey 2012 11
  • 12. The rising importance of “the customer” and “business value”© 2012 Forrester Research, Inc. Reproduction Prohibited 12
  • 13. Survey: Question 1 Q. Do you consider the people that consume your IT services to be: 1. End Users 2. Internal Customers 3. Business Users 4. Other 13
  • 14. What is (IT) Service Management? “The implementation and management of quality IT services that meet the needs of the business.” ~ ITIL “A discipline for managing IT systems, philosophically centered on the customers perspective of ITs contribution to the business. ITSM stands in deliberate contrast to technology-centered approaches to IT management and business interaction.” ~ Wikipedia (Charlie Betz) “Service management is a systematic method for managing the offering, contracting and provisioning of services to customers, at a known quality, cost and designed experience. Service management ensures the desired results and customer satisfaction levels are achieved cost effectively, ...” ~ USMBOK
  • 15. Where Does Your Organization Fit?
  • 16. Survey: Question 2 Q. Do you consider your IT department to be: 1. Technology-centric 2. Service-centric 3. Customer-centric 16
  • 17. I’ve got the wrong focus andI’m using the wrong language
  • 18. What does the business expect from IT?What do they see as delivered “value”?Other than high-quality, business-enabling IT services:Increase revenue/margins/profit and/or decrease costsHelp attract and retain customersDeliver operational efficiency to the business unitsHelp accomplish business goalsDeliver competitive advantageMaybe something about QoS?Importantly, we need to ask them
  • 19. Using ITSM to better serve and meet customer needs (and expectations)© 2012 Forrester Research, Inc. Reproduction Prohibited 20
  • 20. Does This Look Familiar?Source: www.dilbert.com
  • 21. The General Benefits Of Service Management And AutomationJune 2012 “Sustain Service Management And Automation Funding”
  • 22. The General Benefits Of Service Management And AutomationJune 2012 “Sustain Service Management And Automation Funding”
  • 23. Support the PEOPLE not the technology!© 2012 Forrester Research, Inc. Reproduction Prohibited
  • 24. Customer-centricity and Outside-In And moving the IT organization forward© 2012 Forrester Research, Inc. Reproduction Prohibited 25
  • 25. The USMBOK “mantra”1. "What business are we in?"2. "Who do we serve?"3. "How can we help our customers succeed?" 26
  • 26. Where are we and were do we need tobe? I smell metrics.
  • 27. 10 common mistakes with metrics1. “Metrics for metrics sake”2. Too many metrics3. Measuring the easy things4. Focusing internally rather than from a business POV5. Thinking that all metrics were born equal6. Trusting benchmarks7. Metrics are poorly reported8. Ignoring behavioural issues9. Old metrics never die10. Not understanding what metrics really meanBlog: http://blogs.forrester.com/stephen_mann/12-06-20-where_it_metrics_go_wrong_13_issues_to_avoid 28
  • 28. Let’s look at our “Success”IT thinks … The business thinks …Incident Volumes: “Oh, you have failed us 4000 times“Yay we have dealt with 4000 this month”incidents this month”FCR: “If you can’t help me, please pass me“We have achieved a stellar 70% FCR onto someone who can … I don’t haverate in December” 45 minutes for you to try things”Call Response Time: “Why does it take me 3 minutes to get“We answer 90% of calls within 20 through the interactive options before Iseconds” speak to a human?” (FCR-driven?)Availability: “It’s a shame the 0.03% is when we“We have 99.97% availability on really need it to be working”critical services”Staff training: “I don’t need to ask them a question“100% of our service desk agents are on ITIL I need them to help me. Yes,ITIL trained” me the customer”
  • 29. Take a balanced view of performance 30
  • 30. Metrics Should Track Three Key Things CustomersWant From An ExperienceJanuary 2011 “Perception Is Reality When Measuring Customer Experience”
  • 31. Forrester Customer Experience IndexThinking of your interactions over the last 90 days1.How effective was [insert company name] at meeting your needs?2.How easy was [insert company name] to do business with?3.How enjoyable was [insert company name] to do business with?
  • 32. Adapted for IT departments?Thinking of your interactions over the last 90 days1.How effective was your IT department at meeting your needs?2.How easy was your IT department to engage (do business) with?3.How enjoyable was your IT department to engage (do business) with?
  • 33. NPS scoring"IT consistently provides me with the toolsand services I need to do my job effectively"
  • 34. Survey: Question 3 Q. Are you currently using a customer satisfaction metric to measure IT performance? 1. Net Promoter Score (NPS) 2. C-SAT 3. Our own customer satisfaction metrics 4. None 35
  • 35. Recommendations Stop doing. Stop talking. And Listen. What do your customers think of you and your services?In thenext 90 Consider how you have formulated your Grand Plan for IT – is it based on what your customersdays . . . want/need or what you think they want/need? Look closely at your service desk. Is it what’s needed or what you think you should provide? Review your metrics. Are you inside-out and what are you actually doing with the data? Ask you customers how your can improve. And better manage expectations on both sides. Make a commitment to becoming the IT organization your employer and colleagues deserve.
  • 36. Survey: Question 4 Q. Do you have an agenda to improve business user satisfaction in the next 12 months? 1. Yes 2. No 3. We do now! 37
  • 37. Thank youStephen Mannstmann@forrester.com @stephenmann
  • 38. Using ITSM to Increase Business User Satisfaction YOU WILL RECEIVE A LINK TO THE SLIDE-DECK AND RECORDING VIA EMAIL WITHIN 24 HOURS Stephen Mann Joe Beighley Senior Analyst, Forrester Research, Inc. Business Solutions Consultant, Axios Systems Join the LinkedIn Conversation: j.mp/XX4hzt Or search LinkedIn Groups: “How to Increase IT Customer Satisfaction” #ITsatisfaction im@axiossystems.com Blog.axiossystems.com @Axios_Systems Axios on LinkedIn 39
  • 39. Axios Systems WebinarNEXT MONTH’S WEBINAR TOPIC… “Migrating to a New ITSM Solution”Karen Ferris Barry Crosby Clive KeylardDirector, Macanta Consulting Business Solutions Consultant, Axios Application Support Leader, University of Canterbury REGISTER NOW AT: http://j.mp/ZIaxlE Or go to www.axiossystems.com Blog.axiossystems.com @Axios_Systems Axios on LinkedIn 40