Using Six Sigma to Drive Tangible Service Desk Improvement and Savings

2,556 views

Published on

Kirk Holmes, itSMF USA National Capital President Emeritus, President of Holmes and Associates, will present his experience with using Sig Sigma to answer the question; How do you reduce Service Desk costs, improve quality, and fulfill the Service Desk mission?

Published in: Technology, Business

Using Six Sigma to Drive Tangible Service Desk Improvement and Savings

  1. 1. Powerful and Practical Tools for Service Desk Quality Improvements and C t I t d Cost SavingsKirk HolmesPresident, Holmes and Associates, Inc.kirk@holmesinc.nethttp://www.holmesinc.net
  2. 2. About ITSM Academy  Accredited Education  Since 2003 - Tens of Thousands  Certified Process Design Engineer (CPDE) Trained and Certified  ITIL® Foundation  ITSM Professional Diplomas  ITIL Capability (OSA|PPO|RCV|SOA)  Change/Support/SLM  ITIL Lifec cle (SS|SD|ST|SO|CSI) Lifecycle  Public Classes throughout U.S.  ITIL Managing Across the Lifecycle (MALC)  Corporate On-Site Classes  ISO/IEC 20000 Foundation & Bridge  Virtual Classes  MOF Foundation  Courseware Licensing  Practical, Value-Add Workshops  Corporate & Partner (GEM)  ITSM Leadership, Roles, Service Catalog p g  Al Alumni P i Program  ITIL, MOF, ISO 20K Overviews  PMI Global Education Provider  Apollo 13, Visible Ops: The Class  And more!  Certified Woman-OwnedITIL® is a Registered Trade Mark of the Cabinet Office.© ITSM Academy 2 Welcome!
  3. 3. Objectives and Agenda of this Presentation Objective: Keep it Real !! Obj i K i R l • Explain usage of tools like Lean Six Sigma • Provide tips, guidance simple, tangible take-away’s • Give glimpse of other useful tools and frameworks • Get G t you moving t i towards t d tangible i ibl improvement t Agenda • LSS overview • Case Study background • C Case study results t d lt© Holmes and Associates, Inc. All Rights Reserved
  4. 4. About Kirk Holmes• 30 year management, technology, & strategy consultant y g , gy, gy• Appointed as 2011 Examiner for Malcolm Baldrige National Quality Award• First General Manager for Broadband Internet within Comcast• Founding Advisory Board member for Enterprise SPICE (part of ISO 15504)• Education: MIT B.S. Electrical Engineering; Stanford MBA • Member, itSMF USA Board of Directors Jan 2007 – Dec 2010 • Portfolios included Publications, Bus Dev, Treasurer, Knowledge Management (responsible for USA launch of ITIL® Version 3) National Capital • One of original 23 founding members in 2003 p Area LIG • LIG President from 2006 – 2009 (grew to largest LIG in world)© Holmes and Associates, Inc. All Rights Reserved
  5. 5. About Holmes and Associates, Inc. Associates Inc • E Executive advisory and operational consulting ti d i d ti l lti • IT Service Management Excellence • Operational performance improvement • Business Transformation (culture, Organizational Change Management, organizational design) g g g g ) • Service Solutions • Clients have included IRS, NIH, Army, Time Warner, Comcast, State of Montana© Holmes and Associates, Inc. All Rights Reserved
  6. 6. What is Lean Six Sigma? Lean Reduce Waste Reduce Cost And and Time Complexity Improve Six Sigma Quality Improve Mean and Count Reduce Meet Variation Customer Duration Needs© Holmes and Associates, Inc. All Rights Reserved
  7. 7. Some Popular Lean Six Sigma Tools Pareto Charts Value Stream Mapping Cause & Effect Diagrams Frequency Plots (Histograms) Scatter Pl t S tt Plots Control Charts (SPC) Mistake Proofing Four Step Rapid Setup Reduction Process Flow Improvement© Holmes and Associates, Inc. All Rights Reserved
  8. 8. DMAIC Methodology Overview© Holmes and Associates, Inc. All Rights Reserved 8
  9. 9. CASE STUDY: Large Service Desk Facing Growth Pains • Rising demand (calls) Ca Volume • Challenging abandonment • Big seasonality all • Rising cost per call THE BIGGEST CUSTOMER CONCERN: Resolution of user issues sometimes takes as long as 180 days or more© Holmes and Associates, Inc. All Rights Reserved
  10. 10. Initial Improvement Through Assessments Helped Baldrige National Quality Award (Organizational Mat rit ) (Organi ational Maturity) • Leadership IT Infrastructure Library ® • Customer Satisfaction regarding planned changes? • People nt Intent • Process 4 Is the business need for a Service Desk clearly identified N The need for Help Des and understood? management team but • Information and Analysis between Govt and Co Gov t • Planning not clear about combin 7 Has the purpose and benefits of the Service Desk been N Purpose and benefits o disseminated within the organization? 8 Has an education and/or training program been conducted N While there is general for customers and users in the use of the Service Desk and effort needed to educa its benefits benefits pability 11 Does the Service Desk provide the customer/user with N Does not follow-up on i f ti i il bilit i id t b h dl h t t Benchmarks • Lower Cost/call • Lower Average Handle Time Help Desk Institute (HDI) reference • Improved Service Levels …but still no prevention of sporadic high-MTTR tickets© Holmes and Associates, Inc. All Rights Reserved
  11. 11. Death by KPIs: Not All Metrics are Actionable • Management monitoring of streams of data with no context • Data ≠ Information (even with ITIL® KPIs) DAILY INCOMING VOLUME All Customer Interactions AVERAGE HANDLE TIME (Incidents and Service Requests) HOURLY UTILIZATION HOURLY ABANDONMENT RATES© Holmes and Associates, Inc. All Rights Reserved
  12. 12. Lingering Dissatisfaction with Escalation Exceptions are E ti easily overlooked by Service Desk b S i D k until crises erupt b because d il daily metrics look good© Holmes and Associates, Inc. All Rights Reserved
  13. 13. ITIL® Guidance?• Escalate from Tier 2 to Tier 3 when “the the incident will need deeper technical knowledge or the second level group has not second-level been able to resolve the incident within agreed target times ” times…• “Hierarchic escalation is also used … so that senior managers are aware and can be prepared and take any necessary action” y y© Holmes and Associates, Inc. All Rights Reserved
  14. 14. Asking and Answering the Right Questions • If we are d i ITIL® d doing ITIL®, does th t mean we are that doing well? • When should OLAs and SLAs be revisited? • How does this performance really compare with the past? • When is executive intervention needed? • How can we get the tough Tier 3 escalations to be quickly resolved (competing priorities)?© Holmes and Associates, Inc. All Rights Reserved
  15. 15. TIP: Start with Tie-In to Balanced Scorecard (BSC) Financial Customer Business Workforce process Financial Metrics MEET FINANCIAL AND GROWTH TARGETS Current Financial YTD Measures Description How Measured Baseline Targets Nov Dec YTD Period Goals Analysis Analysis Increase Cost per Total monthly cost divided by <$3.50 Customer Cost Contact, Fees charged per contact $5.98 /contact $4.61 $4.90 $5.35 total number of contacts handled /contact Efficiencies normalized Increase Total monthly cost billed (total Cost per User, $0.40/user $0.30/user/mo Customer Cost Fees charged per user labor plus direct fees) divided $0.37 $0.36 $0.39 normalized /month nth Efficiencies by Average number of Users© Holmes and Associates, Inc. All Rights Reserved
  16. 16. CASE STUDY: Define Phase Problem/Goal Statement Business Impact pProblem: Customers are Statement experiencing delays in the resolution of their issues that can sometimes exceed 180 days from The project will improve the capability to date of receipt manage all tickets escalated from Tier IScope: This project will address tasks to Tier III and back to the user through within the Service Desk Ticket final resolution by reducing the ticket process processing times by 95% for allGoal: The goal of the project is to escalated tickets. achieve a 90% reduction in the number of improperly escalated It will also streamline the ticket Service Desk incidents An incidents. escalation process by ensuring all additional goal is to ensure that affected parties can properly use the the users are kept informed of ticketing system in order to expedite their incident’s resolution progress incident review and resolution. at least every 7 days and that days, escalated tickets are resolved within 30 days. © Holmes and Associates, Inc. All Rights Reserved 16
  17. 17. LSS Rule: Listen to Stakeholders VOICE OF THE CUSTOMER VOICE OF THE BUSINESS KIRK’s RULE of THUMB: If you never or rarely have formally asked customers their satisfaction, you are doing poorly in the eyes of the customer© Holmes and Associates, Inc. All Rights Reserved
  18. 18. Case Study Process Workshop Process Step: (Tier 2) Check for existing • Map the Flow of Process Steps p p Unknown Errors and Problems • Map the Flow of Information Trigger: Assigned Ticket • Add Data Boxes and Starbursts Done: Record Saved • Identify Value Added (VA) vs. Non Value Added (NVA) steps TCT (Total Cycle Time): 5 Min People: 1 Changeover Time: g N/A % First Time Yield: Top Issues Engage the Team 1. Insufficient incident data - Record not complete© Holmes and Associates, Inc. All Rights Reserved
  19. 19. Measure Phase – Measure the Right Thing Value Stream Map Baseline Data Collected Do like Ritz Carlton D it lik a Rit C lt CEO© Holmes and Associates, Inc. All Rights Reserved 19
  20. 20. Analyze Phase – Using All the Big Brains CVA/NVA/NVA-R Analysis Critical X/Root Cause Analysis Critical X/Root Causes Analysis Prioritized Root Causes / Effects Pareto Chart© Holmes and Associates, Inc. All Rights Reserved 20
  21. 21. Improve Phase – Making it Happen Key Improvements “To-Be” Process Map • Accelerated Sr. Management review of potentially overdue tickets (Hierarchical) Reengineering after • Accelerated Tier 2 Review of unedited Tier 3 tickets (Functional) doing Deep Dive into • Modification of ticketing system Escalation steps and handoffs queues to prevent stagnation • Streamlined escalation and de- escalation (reduced waste of NVA hierarchical steps) • Dedicated Tier 2 ticket processing roles • Re-Training for Tier 1,2,3 personnel g , , p • Operational Level Agreements between Tiers • New reporting using Control Charts • Sampling of escalations used to track proper/improper handling % • New KPIs focusing on escalation© Holmes and Associates, Inc. All Rights Reserved 21
  22. 22. Control Phase – Consolidating the Victory • Transition t process owner T iti to • SOPs • Training • Replication Step Action/Task Responsible Accountable Consulted Informed 1 Nov 6 Full SOP update of new process flow Bob John Craig Alex New report format – weekly, Craig, 2 Nov 12 monthly Fred John Sandy Mike© Holmes and Associates, Inc. All Rights Reserved
  23. 23. TIP: Learn Control Charts Time to Resolve (TTR) for all escalated tickets (sorted by time-date time date stamp) • Mean value (shown as X) – drive down towards 0 • Upper Control Limit (UCL) – drive down towards goal of 7 days • Exceptional variations (the red dots that fall outside the control range) • General trends in the variation, e.g., if everything starts creeping up© Holmes and Associates, Inc. All Rights Reserved 23
  24. 24. Results: Control Charts PROVE Less Fire Fighting BEFORE AFTER Mean Time to Resolve Variability Extreme violations© Holmes and Associates, Inc. All Rights Reserved 24
  25. 25. Results: Proven Impacts on the Business 5 Year Monthly Measure BEFORE AFTER Projected Mean Time To 15.1 days 4.6 days Cos Cost Resolution for Avoidance ̴ escalated tickets * $1 Million % escalated tickets 48% 72% closed in less than 7 days % of tickets properly 54% 75% escalated * Used 2-t Significance Test to prove statistical significance of case study improvements p© Holmes and Associates, Inc. All Rights Reserved 25
  26. 26. Tip: Use Tool+Methodology Af fool with a tool and a methodology is less likely still a fool I Chart of 2009-09-04 Weekly TTR _(Days) 50 1 40 1 1 1 dividual Value 30 1 1 1 1 1 1 1 20 11 1 1 1 1 1 1 11 1 1 1 Ind 1 1 1 1 11 1 1 1 1 1 1 UCL=12.03 10 _ X=5.31 0 LCL=-1.41 1 61 121 181 241 301 361 421 481 541 601 Observation© Holmes and Associates, Inc. All Rights Reserved
  27. 27. Key Concepts • ITIL® alone is not sufficient l i t ffi i t • Data vs. information • Voice of Customer & Voice of Business • Alignment and harmony To Do List:  Stop • Cross-functional teams are critical blaming • Tools can help if used correctly  Start • Remember Hawthorne analyzing • Methodology helps  Control the things within • Fact-Based decision-making (see Baldrige) your control • Feel h D F l the Data© Holmes and Associates, Inc. All Rights Reserved
  28. 28. Thank you Contact details: Kirk Holmes http://www.holmesinc.net kirk@holmesinc.net kirk@holmesinc net (301) 998-6108© Holmes and Associates, Inc. All Rights Reserved

×