Free Desktop Support Training Series | Cost vs. Quality in IT Support | MetricNet Certified

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MetricNet provides Benchmarks & Key Performance Indicators for Service Desks, Call Centers, & Desktop Support. Download our Whitepapers and Case Studies today. http://goo.gl/chk0K

MetricNet provides Benchmarks & Key Performance Indicators for Service Desks, Call Centers, & Desktop Support. Download our Whitepapers and Case Studies today. http://goo.gl/chk0K

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  • 1. Striking the Right Balance:Cost vs. Quality in IT Support
  • 2. 1© MetricNet, LLC, www.metricnet.com20 Years of Help Desk DataMore than 1,300 Help Desk BenchmarksGlobal Database30 Key Performance IndicatorsNearly 80 Industry Best Practices
  • 3. 2© MetricNet, LLC, www.metricnet.comThen and Now: 20 Years of Benchmarking MetricsKey PerformanceIndicatorIndustry Average Performance1988 2008Monthly Contacts perEnd-User0.79 1.81Cost per Contact $9.57 $21.52Average Handle Time 6:27 12:20Resolved on FirstContact35% 68%Resolved at Level 1 39% 84%Starting Agent Salaries(2008 dollars)$27,280 $36,340Help Desk Cost perEnd-User per Year$97 $574
  • 4. 3© MetricNet, LLC, www.metricnet.comThe 20 Year Trend in Help Desk BudgetsHelp Desk budgets have grown from 0.7% to 4.3% of corporate IT spending over the last 20 years.0.0%1.0%2.0%3.0%4.0%5.0%6.0%HelpDeskBudgetasa%ofTotalITSpend1988 1996 2000 2004 200819920.7%1.4%1.8%3.3%4.0% 4.3%A 6 Fold Increase in Help Desk Budgets!
  • 5. 4© MetricNet, LLC, www.metricnet.com Newer help desks andless evolved help desksare in this category Help desks in this stageare unable to anticipateor prepare for problems A reactive “fire-fighting”mentality prevails at thisstage Call volume continuallyincreases at this stage Customer satisfaction isthe goal The primary goal of astrategic help desk is to makeend users more productive Help desk anticipatesproblems and takes action toprevent occurrence A proactive mentality prevails Users are given tools to solvetheir own problems Call volume sometimesdeclines at this stage Problem complexity increases Customer enthusiasmand value creation is thegoal! Heavy investments intraining and technologycharacterize this stage An expert network ofproblem solvers isestablished outside thehelp desk Automation begins ACD, VRU, reportgeneration, etc. Knowledge baseestablished Call volume oftentimeslevels offSupport Stage Transitional Stage Strategic StageThe Help Desk Evolution
  • 6. 5© MetricNet, LLC, www.metricnet.com61%31%8%Support Stage Transitional Stage Strategic StageTraditional customersupport paradigmThe help desk makes a shiftfrom following the customer toleading the customerThe help desk operates in anon-traditional customersupport paradigm – everytransaction adds value!How Far Has Your Help Desk Evolved?
  • 7. 6© MetricNet, LLC, www.metricnet.comThree of the Most Important Industry MegaTrends1. The Holistic Use of KPI’s: The Hidden Value ofKPI Correlations Yesterday2. Striking the Right Balance: Cost vs. Quality in ITSupport This Session!3. Image Management: Successfully Marketing YourHelp Desk Today at 2:45 pm
  • 8. 7© MetricNet, LLC, www.metricnet.comCost (Cost/Contact)Quality(CustomerSatisfaction)HigherLowerHigherBEST-IN-CLASSPERFORMANCE CURVEAVERAGEPERFORMANCE CURVEThe Cost vs. Quality Tradeoff
  • 9. 8© MetricNet, LLC, www.metricnet.comCharacteristics of a World-Class Help Desk Help 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 First Level Resolution is high (minimizes TCO) Every transaction adds value A positive customer experience Drives a positive view of IT overall
  • 10. 9© MetricNet, LLC, www.metricnet.comCost (Cost/Contact)Quality(CustomerSatisfaction)HigherLowerHigherFour Cost/Quality Scenarios1. Lowest Cost, Lowest Quality4. Highest Cost, Highest Quality2. Lower Cost, Lower Quality3. Higher Cost, Higher Quality
  • 11. 10© MetricNet, LLC, www.metricnet.comKey Performance Indicators: Four ScenariosKey PerformanceIndicatorsFour ScenariosScenario 1(Lowest Cost/LowestQuality)Scenario 2(Lower Cost/Lower Quality)Scenario 3(Higher Cost/Higher Quality)Scenario 4(HighestCost/HighestQuality)Cost/Contact $9 $12 $18 $30Customer Satisfaction 70% 82% 90% 95%Agent Utilization 65% 60% 55% 50%First Contact Resolution 60% 72% 78% 82%Average Speed of Answer 90 sec 60 sec 30 sec 20 secFirst Level Resolution 75% 85% 90% 95%
  • 12. 11© MetricNet, LLC, www.metricnet.comCost (Cost/Contact)Quality(CustomerSatisfaction)HigherLowerHigherThe Ideal Operating Range1234Costs too High!(only rarely)Quality too Low!(only rarely)Ideal OperatingRange
  • 13. 12© MetricNet, LLC, www.metricnet.comKPI’s in The Ideal Operating RangeKey Performance IndicatorsPerformance in theIdeal Operating RangeScenario 2(Lower Cost/Lower Quality)Scenario 3(Higher Cost/Higher Quality)Cost/Contact $12 $18Customer Satisfaction 82% 90%Agent Utilization 60% 55%First Contact Resolution 72% 78%Average Speed of Answer 60 sec 30 secFirst Level Resolution 85% 90%
  • 14. 13© MetricNet, LLC, www.metricnet.comOptimizing the Cost/Quality TradeoffGetting there is a Two-Step process1. Benchmark your Help Deskto maximize Efficiency and Effectiveness2. Fine Tune your Help Desk performance toachieve the ideal operating point
  • 15. 14© MetricNet, LLC, www.metricnet.comYour Help DeskPerformancePerformance ofBenchmarking PeerGroupDetermine HowBest in ClassAchieve SuperiorityAdopt SelectedPractices ofBest in ClassBuild a SustainableCompetitiveAdvantageThe ultimateobjective ofbenchmarkingCOMPAREThe Benchmarking MethodologyRequest a copy of MetricNet’s whitepaper on Help Desk Benchmarking.
  • 16. 15© MetricNet, LLC, www.metricnet.comCost/Contact HigherLowerHigherAFTER BENCHMARKINGSTARTING POINT: BEFOREBENCHMARKINGBEST-IN-CLASSPERFORMANCE CURVEAVERAGEPERFORMANCE CURVEStep 1: Benchmarking
  • 17. 16© MetricNet, LLC, www.metricnet.comCost (Cost/Contact)Quality(CustomerSatisfaction)HigherLowerHigherStep 2: Fine TuningIdeal OperatingRangeMoving To Lower CostMoving To Higher Quality
  • 18. 17© MetricNet, LLC, www.metricnet.comMoving to Higher Quality: Key DriversQuality(Customer Satisfaction)First Contact Resolution(The Most Important Driver)Training HoursCall QualityTechnology KBase RemoteDiagnostic ToolsThe Bottom LineEvery 1% Increase in First Contact Resolution Improves Customer Satisfaction by Approximately 1%!
  • 19. 18© MetricNet, LLC, www.metricnet.comFirst Contact Resolution Drives Customer Satisfaction20%40%60%80%100%20% 40% 60% 80% 100%First Contact ResolutionCustomerSatisfaction
  • 20. 19© MetricNet, LLC, www.metricnet.comNew Agent Training Hours vs. First Contact Resolution0%10%20%30%40%50%60%70%80%90%100%0 50 100 150 200 250 300 350New Agent Training HoursFirstContactResolutionRate
  • 21. 20© MetricNet, LLC, www.metricnet.comVeteran Agent Training vs. First Contact Resolution0%10%20%30%40%50%60%70%80%90%100%0 20 40 60 80 100 120 140Veteran Agent Training HoursFirstContactResolutionRate
  • 22. 21© MetricNet, LLC, www.metricnet.comCost (Cost/Contact)Quality(CustomerSatisfaction)HigherLowerHigherStep 2: Fine TuningIdeal OperatingRangeMoving To Lower CostMoving To Higher Quality
  • 23. 22© MetricNet, LLC, www.metricnet.comMoving to Lower Cost: Key DriversThe Bottom LineEvery 2% Increase in Agent Utilization Reduces Cost per Contact by Approximately 1%!Cost(Cost/Contact)Agent Utilization(The Most Important Driver)TrainingHoursFirst LevelResolutionHandleTimeService Levels:ASA and ARSchedulingEfficiencyTechnologyTools
  • 24. 23© MetricNet, LLC, www.metricnet.comAgent Utilization Drives Cost per Contact$0$5$10$15$20$25$30$35$40$4520% 30% 40% 50% 60% 70% 80%Agent UtilizationCostperContact
  • 25. 24© MetricNet, LLC, www.metricnet.comThe Agent Utilization FormulaAgentUtilization(Average number of contacts handled per agent per month) X (Average handle time in minutes)(Average number of days worked in a month) X (Number of work hours in a day) X (60 minutes/hr)=ExampleAgentUtilization(500 contacts/month) X (10 minutes/contact)(21 working days per month) X (7.5 work hours per day) X (60 minutes/hr)= 52.9%=
  • 26. 25© MetricNet, LLC, www.metricnet.com 25© MetricNet, LLC, www.metricnet.comAgent Utilization: Benchmarking Results20%30%40%50%60%70%80%TechUtilizationHigh 74.3%Average ----- 53.1%Median 55.3%Low 32.9%Your Score 58.0%Tech Utilization
  • 27. 26© MetricNet, LLC, www.metricnet.comASA Drives Cost per Contact$0.00$5.00$10.00$15.00$20.00$25.00$30.00$35.00$40.000 50 100 150 200 250Average Speed of Answer (sec)CostperContact
  • 28. 27© MetricNet, LLC, www.metricnet.comASA vs. Customer Satisfaction0.0%20.0%40.0%60.0%80.0%100.0%0 5% 10% 15% 20%ASA as a % of Total Handle TimeCustomerSatisfaction
  • 29. 28© MetricNet, LLC, www.metricnet.comCall 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$45.000.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%Call Abandonment RateCostperContact
  • 30. 29© MetricNet, LLC, www.metricnet.comCall Abandonment Rate vs. Customer Sat0.0%20.0%40.0%60.0%80.0%100.0%0.0% 5.0% 10.0% 15.0% 20.0% 25.0%Call Abandonment RateCustomerSatisfaction
  • 31. 30© MetricNet, LLC, www.metricnet.comCost of First Level vs. n-Level ResolutionSupport LevelCost per IncidentResolvedVendorDesktop SupportField Support(inside company)Level 2(outside help desk)Help Desk$466$138$62$41$22
  • 32. 31© MetricNet, LLC, www.metricnet.com As the Level 1 resolution rate increases, the cost per contact for Level 1 increases But the total cost per contact, including Level n costs, declines The cost of resolution at level n is typically 2X to 10X greater than at level 1LOWERHIGHERCOST HIGHERTotal Cost per ContactFIRST LEVELRESOLUTION RATEFirst Level Resolution Drives Total Cost of Ownership (TCO)Level 1 Cost per ContactTotal Level n CostCOSTPERCONTACT
  • 33. 32© MetricNet, LLC, www.metricnet.com 32Cost and Quality: Where Does Your Help Desk Land?Lower CostCost (Efficiency)Quality(Effectiveness)Top QuartileEfficient and EffectiveLower QuartileMiddle QuartilesEffective but not EfficientMiddle QuartilesEfficient but not EffectiveYour HelpDeskPeer GroupHigher CostLowerQualityHigherQuality© MetricNet, LLC, www.metricnet.com
  • 34. 33© MetricNet, LLC, www.metricnet.comSome Final Thoughts Optimizing the Cost/Quality Tradeoff is a two-step process1. Benchmark your Help Desk to maximize Efficiency and Effectiveness2. Fine Tune your Help Desk performance to achieve the ideal operatingpoint Benchmarking will move your Help Desk to the Best-in-Classperformance curve From there, you can optimize cost and quality Improve First Contact Resolution to improve Customer Satisfaction Don’t “buy” too much Quality! Improve Agent Utilization to reduce Cost per Contact Don’t sacrifice quality for the sake of reducing costs!
  • 35. 34© MetricNet, LLC, www.metricnet.comUpcoming MetricNet WebcastsRegister at www.metricnet.comUnleashing the Enormous Power of ServiceDesk KPI’s Wednesday, April 15th, 2009 at 2:00 pm EDTIT Customer Satisfaction Measurement Tuesday April 21st, 2009 at 2:00 pm - 3:30pmEDTFor more information on Industry Best Practices, please register forMetricNet’s free upcoming webcasts