How to Measure and EnsurePositive ROI !
122 Years of Service Desk Benchmarking DataMore than 1,600 Service Desk BenchmarksGlobal Database30 Key Performance Indica...
2© MetricNet, LLC, www.metricnet.comThen and Now: 22 Years of Benchmarking MetricsKey PerformanceIndicatorNorth American A...
10 Mega Trends in End-User Support The rise of the Strategic Service Desk Holistic use of KPI’s Benchmarking to Improve...
A SPOC Service Desk is Highly LeveragedUser CommunityLevel 1:Service DeskLevel 2:DesktopSupportFieldSupportLevel 3:IT Supp...
Total Cost of Ownership: North American AveragesSupport Level Cost per IncidentVendorLevel 2: Desktop SupportField Support...
84%47%31% 29%22%8%0%20%40%60%80%100%Help Desk DesktopSupportNetworkOutagesQuality ofDesktopTools(Hardwareand Software)Qual...
ROI for End-User SupportOur central question today…How Do We Ensure Positive ROIfor End-User Support ?7© MetricNet, LLC, w...
ROI Defined8© MetricNet, LLC, www.metricnet.comROI =ReturnInvestment=SavingsSpending ROI is a simple ratio It requires q...
ROI: Two Simple ExamplesExample Investment One Year Return First Year ROIBank CD $10,000 $300 3%Service Desk Training $10,...
Three Components of the ROI Question Is our Service Desk“profitable”? Is Desktop Support“profitable” What is the overal...
Organizational ROI: Are You “Profitable”? Is our Service Desk“profitable”? Is Desktop Support“profitable” What is the o...
12© MetricNet, LLC, www.metricnet.comCase Study #1: Organizational ROIExample: Organizational ROI 2,600 end users generat...
Operational ROI: Are You Optimized? Is your ServiceDesk “profitable”? Is Desktop Support“profitable” What is the overal...
© MetricNet, LLC, www.metricnet.comCase Study #2:Operational ROI14
Your Service Desk orDesktop SupportPerformancePerformance ofBenchmarking PeerGroupDetermine HowBest in ClassAchieve Superi...
Cost/Contact HigherLowerHigherAFTER BENCHMARKINGSTARTING POINT: BEFOREBENCHMARKINGBEST-IN-CLASSPERFORMANCE CURVEAVERAGE PE...
17© MetricNet, LLC, www.metricnet.comBenchmarking Performance SummaryRead MetricNet’s whitepaper on Benchmarking Peer Grou...
The Foundation Metrics: Cost and QualityCost/Contact(Efficiency)Customer Satisfaction(Effectiveness)18© MetricNet, LLC, ww...
19Aggregate Metrics: Cost vs. QualityLower CostCost (Efficiency)Quality(Effectiveness)Top QuartileEfficient and EffectiveL...
Agent Utilization and First Contact Resolution RateCost/Contact Customer SatisfactionAgentUtilizationFirst ContactResoluti...
Agent Utilization Drives Cost per Contact$0$5$10$15$20$25$30$35$40$4520% 30% 40% 50% 60% 70% 80%Agent UtilizationCostperCo...
First Contact Resolution Drives Customer Satisfaction20%40%60%80%100%20% 40% 60% 80% 100%First Contact ResolutionCustomerS...
Service Levels: ASA and Abandonment RateCost/Contact Customer SatisfactionAgentUtilizationFirstContactResolutionTraining H...
ASA 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...
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$45.000.0% 5.0% 10.0...
ASA 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 TimeCustomerSatisfac...
Call 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 Rate...
Training Hours Impact First Contact Resolution RateCost/Contact Customer SatisfactionAgentUtilizationFirstContactResolutio...
New 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 Agen...
Veteran 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...
Agent SatisfactionCost/Contact Customer SatisfactionAgentUtilizationFirstContactResolutionAgentSatisfactionTraining HoursA...
Agent Satisfaction Impacts Customer Satisfaction20%30%40%50%60%70%80%90%100%50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%Ag...
Agent Satisfaction Drives Agent Turnover0%10%20%30%40%50%60%70%80%90%50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%Agent Sat...
Cause and Effect of Primary KPI’sCost/Contact Customer SatisfactionAgentUtilizationFirstContactResolutionAgentSatisfaction...
Training Hours Drive Agent Satisfaction40%50%60%70%80%90%100%0 20 40 60 80 100 120 140Veteran Agent Training HoursAgentSat...
36© MetricNet, LLC, www.metricnet.comBenchmarking Performance SummaryRead MetricNet’s whitepaper on Benchmarking Peer Grou...
A Summary of the Operational KPI CorrelationsCost/Contact Customer SatisfactionAgentUtilizationFirstContactResolutionAgent...
Investment ROI: Does the Investment Make Sense? Is our Service Desk“profitable”? Is Desktop Support“profitable” What is...
39© MetricNet, LLC, www.metricnet.comROI: The Heart of Every Business Case A Business Case is a proposed investment, and ...
40© MetricNet, LLC, www.metricnet.comCase Study #3: Investment ROIExample: Knowledge Management System Vendor claims that...
41© MetricNet, LLC, www.metricnet.comCase Study #3: Investment ROI (contd.)Handle Time Savings The AHT was reduced from 1...
The Bottom Line on ROI Progressive support organizations are increasingly turning to ROI to demonstratetheir economic con...
10 Mega Trends in End-User Support The rise of the Strategic Service Desk Holistic use of KPI’s Benchmarking to Improve...
About MetricNet:Your Benchmarking Partner44© MetricNet, LLC, www.metricnet.com
Jeff Rumburg is a co-founder and Managing Partner at MetricNet,LLC. Jeff is responsible for global strategy, product devel...
46© MetricNet, LLC, www.metricnet.comBenchmarking is MetricNet’s Core BusinessCall CentersTelecomInformationTechnologySati...
22 Years of Service Desk Benchmarking DataMore than 1,600 Service Desk BenchmarksGlobal Database30 Key Performance Indicat...
Meet a Sampling of Our ClientsMetricNet Conducts benchmarking for Service Desks worldwide, andacross virtually every indus...
Upcoming MetricNet WebcastsRegister at www.metricnet.com April 12, 2011 Unleashing the Enormous Power of ServiceDesk KPI...
50© MetricNet, LLC, www.metricnet.comYou Can Reach MetricNet…By Phone…703-992-7559On Our Website…www.metricnet.comOr E-mai...
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Free Service Desk Training Series | How to Measure and Ensure Positive ROI in Your Service Desk | MetricNet Certified

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Free Service Desk Training Series | How to Measure and Ensure Positive ROI in Your Service Desk | MetricNet Certified

  1. 1. How to Measure and EnsurePositive ROI !
  2. 2. 122 Years of Service Desk Benchmarking DataMore than 1,600 Service Desk BenchmarksGlobal Database30 Key Performance IndicatorsNearly 80 Industry Best Practices© MetricNet, LLC, www.metricnet.com
  3. 3. 2© MetricNet, LLC, www.metricnet.comThen and Now: 22 Years of Benchmarking MetricsKey PerformanceIndicatorNorth American Averages1988 2010Monthly Contacts perEnd-User0.79 1.95Cost per Contact $9.57 $21.84Average Handle Time 6:27 12:55Resolved on FirstContact35% 67%Resolved at Level 1 39% 85%Starting Agent Salaries(2010 dollars)$27,280 $35,411Service Desk Cost perEnd-User per Year$97 $502
  4. 4. 10 Mega Trends in End-User Support The rise of the Strategic Service Desk Holistic use of KPI’s Benchmarking to Improve Performance User Self-Help Marketing the Service Desk Understanding TCO First Contact and First Level Resolution Process Rationalization (ITIL, ITSM) Knowledge Management and Remote Diagnosis The Widespread Adoption of ROI Analysis3© MetricNet, LLC, www.metricnet.com
  5. 5. A SPOC Service Desk is Highly LeveragedUser CommunityLevel 1:Service DeskLevel 2:DesktopSupportFieldSupportLevel 3:IT SupportVendorSupport4© MetricNet, LLC, www.metricnet.com
  6. 6. Total Cost of Ownership: North American AveragesSupport Level Cost per IncidentVendorLevel 2: Desktop SupportField SupportLevel 3 IT(apps, networking, NOC, etc.)Level 1: Service Desk$471$196$85$62$225© MetricNet, LLC, www.metricnet.com
  7. 7. 84%47%31% 29%22%8%0%20%40%60%80%100%Help Desk DesktopSupportNetworkOutagesQuality ofDesktopTools(Hardwareand Software)Quality ofEnterpriseApplicationsIT Training%SayingVeryImportant6© MetricNet, LLC, www.metricnet.comEnd-User Support: The Key to Driving End-User Satisfaction84% of end-users cite the Service Desk as a primary factorin shaping their opinions of corporate IT
  8. 8. ROI for End-User SupportOur central question today…How Do We Ensure Positive ROIfor End-User Support ?7© MetricNet, LLC, www.metricnet.com
  9. 9. ROI Defined8© MetricNet, LLC, www.metricnet.comROI =ReturnInvestment=SavingsSpending 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 themetric) 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 success of past investments
  10. 10. ROI: Two Simple ExamplesExample Investment One Year Return First Year ROIBank CD $10,000 $300 3%Service Desk Training $10,000 $20,000 200%Service Desk Training: A 200% Return Company XYZ hires an outside training firm in an effort to reducehandle times, and improve First Contact Resolution rates Following the training, handle times drop from 10 minutes to 9minutes, and Cost per Contact drops from $20 to $19 The $1 savings in Cost per Contact, when multiplied by 20,000contacts per year, yields a one year savings of $20,000 The end result is an ROI of 200% in year 19© MetricNet, LLC, www.metricnet.com
  11. 11. Three Components of the ROI Question Is our Service Desk“profitable”? Is Desktop Support“profitable” What is the overallROI for End-userSupport in ourorganization? Does End-usersupport make apositive economiccontribution?OrganizationalROIInvestmentROI What incrementalinvestments in End-User Support makeeconomic sense? Technologyinvestments Process investments(e.g. ITIL) Investments inTraining Investing in HumanResources Insourcing andOutsourcing10© MetricNet, LLC, www.metricnet.comOperationalROI How efficient is theService Desk? How efficient is DesktopSupport Is it possible to reducecosts in end-usersupport? What steps can beundertaken to minimizecosts for end-usersupport?
  12. 12. Organizational ROI: Are You “Profitable”? Is our Service Desk“profitable”? Is Desktop Support“profitable” What is the overallROI for End-userSupport in ourorganization? Does End-usersupport make apositive economiccontribution?OrganizationalROIInvestmentROI What incrementalinvestments in End-User Support makeeconomic sense? Technologyinvestments Process investments(e.g. ITIL) Investments inTraining Investing in HumanResources Insourcing andOutsourcing11© MetricNet, LLC, www.metricnet.comOperationalROI How efficient is theService Desk? How efficient is DesktopSupport Is it possible to reducecosts in end-usersupport? What steps can beundertaken to minimizecosts for end-usersupport?
  13. 13. 12© MetricNet, LLC, www.metricnet.comCase Study #1: Organizational ROIExample: Organizational ROI 2,600 end users generating 5,000 contacts per month, or 60,000contacts per year Service desk saves each end user an average of 1 hour 10 minutes percontact (industry average based upon surveys) That’s the equivalent of 5,833 productive hours saved per month… Or 33.7 FTE’s per year: More than 1% of payroll!What’s the Service Desk ROI? This Service Desk has 15 FTE’s, and spends $1,250,000 per year The labor cost savings generated by the Service Desk is about $2.7million per year (33.7 FTE’s X $80,000 average salary and benefits) The Service Desk ROI is therefore 215% ($2.7mm/$1.25mm)
  14. 14. Operational ROI: Are You Optimized? Is your ServiceDesk “profitable”? Is Desktop Support“profitable” What is the overallROI for End-userSupport in ourorganization? Does End-usersupport make apositive economiccontribution?OrganizationalROIInvestmentROI What incrementalinvestments in End-User Support makeeconomic sense? Technologyinvestments Process investments(e.g. ITIL) Investments inTraining Investing in HumanResources Insourcing andOutsourcing13© MetricNet, LLC, www.metricnet.comOperationalROI How efficient is theService Desk? How efficient is DesktopSupport Is it possible to reducecosts in end-usersupport? What steps can beundertaken to minimizecosts for end-usersupport? How do we optimize theCost/Quality tradeoff inEnd-User Support?
  15. 15. © MetricNet, LLC, www.metricnet.comCase Study #2:Operational ROI14
  16. 16. Your Service Desk orDesktop SupportPerformancePerformance ofBenchmarking PeerGroupDetermine HowBest in ClassAchieve SuperiorityAdopt SelectedPractices ofBest in ClassBuild a SustainableCompetitiveAdvantageThe ultimateobjective ofbenchmarkingCOMPAREThe Benchmarking MethodologyRead MetricNet’s whitepaper on Help Desk Benchmarking. Go to www.metricnet.com to receive your copy!15© MetricNet, LLC, www.metricnet.com
  17. 17. Cost/Contact HigherLowerHigherAFTER BENCHMARKINGSTARTING POINT: BEFOREBENCHMARKINGBEST-IN-CLASSPERFORMANCE CURVEAVERAGE PERFORMANCE CURVEThe Goal of Benchmarking16© MetricNet, LLC, www.metricnet.com
  18. 18. 17© MetricNet, LLC, www.metricnet.comBenchmarking Performance SummaryRead MetricNet’s whitepaper on Benchmarking Peer Group Selection. Go to www.metricnet.com to get your copy!Min Median Average MaxCost/Contact $28.17 $6.59 $22.56 $22.96 $38.44Cost/Minute of Handle Time $2.66 $1.22 $2.00 $1.96 $2.95Contacts/Agent-Month 429 373 487 504 699Agent Utilization 46.7% 25.9% 53.9% 53.1% 71.1%Average Speed of Answer (ASA) in seconds 18 12 34 45 187Percent Answered in 30 Seconds or Less 86.6% 36.5% 71.3% 72.1% 100.0%Call Abandonment Rate 2.9% 1.4% 7.6% 8.1% 25.2%Call Quality 68.4% 43.8% 75.8% 79.9% 94.5%Customer Satisfaction 63.0% 41.9% 75.5% 79.0% 96.6%Annual Agent Turnover 29.5% 1.7% 26.4% 31.7% 94.0%Daily Absenteeism 19.2% 0.1% 13.0% 13.2% 29.8%New Agent Training Hours 36 20 69 79 241Ongoing Agent Annual Training Hours 12 0 20 34 130Agent Satisfaction (% satisfied or very satisfied) 71.0% 33.8% 70.1% 75.4% 94.5%Agents as a Percent of Total FTEs 77.9% 57.1% 69.3% 70.5% 88.4%Contact Handle Time (min:sec) 12:41 2:47 9:34 11:18 19:55First Contct Resolution Rate 51.3% 45.4% 67.8% 71.2% 94.1%IVR Completion Rate 6.7% 0.0% 18.9% 22.0% 44.8%MetricType Key Performance Indicator (KPI)YourScorePeer GroupAgentCall HandlingCostProductivityService LevelQualitySample Data Only! Not Intended for Benchmarking Purposes!
  19. 19. The Foundation Metrics: Cost and QualityCost/Contact(Efficiency)Customer Satisfaction(Effectiveness)18© MetricNet, LLC, www.metricnet.com
  20. 20. 19Aggregate Metrics: Cost vs. QualityLower CostCost (Efficiency)Quality(Effectiveness)Top QuartileEfficient and EffectiveLower QuartileMiddle QuartilesEffective but not EfficientMiddle QuartilesEfficient but not EffectiveYour ServiceDeskPeer GroupHigher CostLowerQualityHigherQuality© MetricNet, LLC, www.metricnet.com
  21. 21. Agent Utilization and First Contact Resolution RateCost/Contact Customer SatisfactionAgentUtilizationFirst ContactResolution20© MetricNet, LLC, www.metricnet.com
  22. 22. Agent Utilization Drives Cost per Contact$0$5$10$15$20$25$30$35$40$4520% 30% 40% 50% 60% 70% 80%Agent UtilizationCostperContact21© MetricNet, LLC, www.metricnet.com
  23. 23. First Contact Resolution Drives Customer Satisfaction20%40%60%80%100%20% 40% 60% 80% 100%First Contact ResolutionCustomerSatisfaction22© MetricNet, LLC, www.metricnet.com
  24. 24. Service Levels: ASA and Abandonment RateCost/Contact Customer SatisfactionAgentUtilizationFirstContactResolutionTraining HoursSchedulingEfficiencyService Levels:ASA and AR23© MetricNet, LLC, www.metricnet.com
  25. 25. ASA 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)CostperContact24© MetricNet, LLC, www.metricnet.com
  26. 26. 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$45.000.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%Call Abandonment RateCostperContact25© MetricNet, LLC, www.metricnet.com
  27. 27. ASA 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 TimeCustomerSatisfaction26© MetricNet, LLC, www.metricnet.com
  28. 28. Call 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 RateCustomerSatisfaction27© MetricNet, LLC, www.metricnet.com
  29. 29. Training Hours Impact First Contact Resolution RateCost/Contact Customer SatisfactionAgentUtilizationFirstContactResolutionTraining HoursSchedulingEfficiencyService Levels:ASA and AR28© MetricNet, LLC, www.metricnet.com
  30. 30. New 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 HoursFirstContactResolutionRate29© MetricNet, LLC, www.metricnet.com
  31. 31. Veteran 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 HoursFirstContactResolutionRate30© MetricNet, LLC, www.metricnet.com
  32. 32. Agent SatisfactionCost/Contact Customer SatisfactionAgentUtilizationFirstContactResolutionAgentSatisfactionTraining HoursAbsenteeism/TurnoverSchedulingEfficiencyService Levels:ASA and AR31© MetricNet, LLC, www.metricnet.com
  33. 33. Agent Satisfaction Impacts Customer Satisfaction20%30%40%50%60%70%80%90%100%50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%Agent SatisfactionCustomerSatisfaction32© MetricNet, LLC, www.metricnet.com
  34. 34. Agent Satisfaction Drives Agent Turnover0%10%20%30%40%50%60%70%80%90%50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%Agent SatisfactionAnnualTurnover33© MetricNet, LLC, www.metricnet.com
  35. 35. Cause and Effect of Primary KPI’sCost/Contact Customer SatisfactionAgentUtilizationFirstContactResolutionAgentSatisfactionTraining HoursAbsenteeism/TurnoverSchedulingEfficiencyService Levels:ASA and AR34© MetricNet, LLC, www.metricnet.com
  36. 36. Training Hours Drive Agent Satisfaction40%50%60%70%80%90%100%0 20 40 60 80 100 120 140Veteran Agent Training HoursAgentSatisfaction35© MetricNet, LLC, www.metricnet.com
  37. 37. 36© MetricNet, LLC, www.metricnet.comBenchmarking Performance SummaryRead MetricNet’s whitepaper on Benchmarking Peer Group Selection. Go to www.metricnet.com to get your copy!Min Median Average MaxCost/Contact $28.17 $6.59 $22.56 $22.96 $38.44Cost/Minute of Handle Time $2.66 $1.22 $2.00 $1.96 $2.95Contacts/Agent-Month 429 373 487 504 699Agent Utilization 46.7% 25.9% 53.9% 53.1% 71.1%Average Speed of Answer (ASA) in seconds 18 12 34 45 187Percent Answered in 30 Seconds or Less 86.6% 36.5% 71.3% 72.1% 100.0%Call Abandonment Rate 2.9% 1.4% 7.6% 8.1% 25.2%Call Quality 68.4% 43.8% 75.8% 79.9% 94.5%Customer Satisfaction 63.0% 41.9% 75.5% 79.0% 96.6%Annual Agent Turnover 29.5% 1.7% 26.4% 31.7% 94.0%Daily Absenteeism 19.2% 0.1% 13.0% 13.2% 29.8%New Agent Training Hours 36 20 69 79 241Ongoing Agent Annual Training Hours 12 0 20 34 130Agent Satisfaction (% satisfied or very satisfied) 71.0% 33.8% 70.1% 75.4% 94.5%Agents as a Percent of Total FTEs 77.9% 57.1% 69.3% 70.5% 88.4%Contact Handle Time (min:sec) 12:41 2:47 9:34 11:18 19:55First Contct Resolution Rate 51.3% 45.4% 67.8% 71.2% 94.1%IVR Completion Rate 6.7% 0.0% 18.9% 22.0% 44.8%MetricType Key Performance Indicator (KPI)YourScorePeer GroupAgentCall HandlingCostProductivityService LevelQualitySample Data Only! Not Intended for Benchmarking Purposes!
  38. 38. A Summary of the Operational KPI CorrelationsCost/Contact Customer SatisfactionAgentUtilizationFirstContactResolutionAgentSatisfactionCoaching Career Path Training HoursCallQualityHandleTimeAgents/Total FTE’sAbsenteeism/TurnoverFirst LevelResolutionSchedulingEfficiencyService Levels:ASA and AR37© MetricNet, LLC, www.metricnet.com
  39. 39. Investment ROI: Does the Investment Make Sense? Is our Service Desk“profitable”? Is Desktop Support“profitable” What is the overallROI for End-userSupport in ourorganization? Does End-usersupport make apositive economiccontribution?OrganizationalROIInvestmentROI What incrementalinvestments in End-User Support makeeconomic sense? Technologyinvestments Process investments(e.g. ITIL) Investments inTraining Investing in HumanResources Insourcing andOutsourcing38© MetricNet, LLC, www.metricnet.comOperationalROI How efficient is theService Desk? How efficient is DesktopSupport Is it possible to reducecosts in end-usersupport? What steps can beundertaken to minimizecosts for end-usersupport?
  40. 40. 39© MetricNet, LLC, www.metricnet.comROI: The Heart of Every Business Case A Business Case is a proposed investment, and aneconomic evaluation of that investment It is based on quantifiable projections of investment (spending)and return (cost savings) Return on Investment is a central component of everyBusiness Case Other Business Case metrics may include Time to Breakeven (orpayback period), and Cost/Benefit Ratio
  41. 41. 40© MetricNet, LLC, www.metricnet.comCase Study #3: Investment ROIExample: Knowledge Management System Vendor claims that the K-base will cost $65,000 to install and populate,and $20,000 a year to maintain Vendor claims that improvements in First Level and First Contactresolution rates, plus lower handle times will pay for the investment inthe first three monthsWhat Actually Happened? The K-base installation and customization was $240,000, and theannual maintenance costs are now about $110,000 FCR and FLR did improve, and handle times did decline Was the investment worthwhile?
  42. 42. 41© MetricNet, LLC, www.metricnet.comCase Study #3: Investment ROI (contd.)Handle Time Savings The AHT was reduced from 15 minutes to 12 minutes When multiplied by 60,000 contacts per year, that’s a savings of 3,000 laborhours on the Service Desk per year The Service Desk was able to reduce staff by 3 FTE’s as a result, saving a totalof $195,000 per yearWhat’s the ROI? The K-base was depreciated over six years at a rate of $40,000 per year Annual costs for the K-base are therefore $150,000 ($40,000 for depreciation +$110,000 in annual maintenance costs) The ROI is therefore 130% ($195,000 Return/$150,000 Annual Investment)
  43. 43. The Bottom Line on ROI Progressive support organizations are increasingly turning to ROI to demonstratetheir economic contribution to the organization, and justify investments Organizational ROI: The Service Desk itself must have a positive ROI Using the benchmarks suggested in this presentation, organizational ROI should be in therange of 200% or more Operational ROI: Improvements in Operational Efficiency have a positive ROI Benchmarking can identify and prioritize these opportunities Investment ROI: Every investment should have a positive ROI An ROI Hurdle Rate of at least 100% is suggested Given the dynamic nature of End-User Support, every investment should pay for itself in lessthan one year Successful ROI Analysis requires two things1. Accurately Quantifying costs and benefits2. Accurately Projecting future costs and benefits Most investments are scale sensitive An investment that has a positive ROI for a 50 seat Service Desk may not be viable for a10 seat Service Desk This is particularly true for technology investments42© MetricNet, LLC, www.metricnet.com
  44. 44. 10 Mega Trends in End-User Support The rise of the Strategic Service Desk Holistic use of KPI’s Benchmarking to Improve Performance User Self-Help Marketing the Service Desk Understanding TCO First Contact and First Level Resolution Process Rationalization (ITIL, ITSM) Knowledge Management and Remote Diagnosis The Widespread Adoption of ROI Analysis43© MetricNet, LLC, www.metricnet.com
  45. 45. About MetricNet:Your Benchmarking Partner44© MetricNet, LLC, www.metricnet.com
  46. 46. Jeff Rumburg is a co-founder and Managing Partner at MetricNet,LLC. Jeff is responsible for global strategy, product development,and financial operations for the company. As a leading expert inbenchmarking and re-engineering, Mr. Rumburg authored a bestselling book on benchmarking, and has been retained as abenchmarking expert by such well-known companies as AmericanExpress, Hewlett-Packard, and GM. Prior to co-foundingMetricNet, Mr. Rumburg was president and founder of The VerityGroup, an international management consulting firm specializing inIT benchmarking. While at Verity, Mr. Rumburg launched a numberof syndicated benchmarking services that provided low costbenchmarks to more than 1,000 corporations worldwide.Mr. Rumburg has also held a number of executive positions at META Group, and Gartner, Inc. Asa vice president at Gartner, Mr. Rumburg led a project team that reengineered Gartners globalbenchmarking product suite. And as vice president at META Group, Mr. Rumburgs career wasfocused on business and product development for IT benchmarking. Mr. Rumburgs educationincludes an M.B.A. from the Harvard Business School, an M.S. magna cum laude in OperationsResearch from Stanford University, and a B.S. magna cum laude in Mechanical Engineering. Heis author of A Hands-On Guide to Competitive Benchmarking: The Path to Continuous Qualityand Productivity Improvement, and has taught graduate-level engineering and business courses.Mr. Rumburg currently serves on the Strategic Advisory Board for HDI, the Help Desk Institute.Your Speaker: Jeff Rumburg45© MetricNet, LLC, www.metricnet.com
  47. 47. 46© MetricNet, LLC, www.metricnet.comBenchmarking is MetricNet’s Core BusinessCall CentersTelecomInformationTechnologySatisfaction Technical Support Customer Service Telemarketing/Telesales Collections Customer Support Desktop Support Field Support Price Benchmarking Customer Satisfaction Employee Satisfaction
  48. 48. 22 Years of Service Desk Benchmarking DataMore than 1,600 Service Desk BenchmarksGlobal Database30 Key Performance IndicatorsNearly 80 Industry Best Practices47© MetricNet, LLC, www.metricnet.com
  49. 49. Meet a Sampling of Our ClientsMetricNet Conducts benchmarking for Service Desks worldwide, andacross virtually every industry sector.© MetricNet, LLC, www.metricnet.com 48
  50. 50. Upcoming MetricNet WebcastsRegister at www.metricnet.com April 12, 2011 Unleashing the Enormous Power of ServiceDesk KPI’s! May 10, 2011 Call Center Best Practices! June 7, 2011 Best Practices in Desktop Support! July 12, 2011 Best Practices for IT Service Desks! August 9, 2011 Customer Satisfaction Measurement Programs that Work! September 13, 2011 Unleashing the Enormous Power of Call Center KPI’s! October 11, 2011 Unleashing the Enormous Power of Service Desk KPI’s! November 8, 2011 Call Center Best Practices!For more information on Industry Best Practices, please register for MetricNet’s FREE upcoming webcasts49
  51. 51. 50© MetricNet, LLC, www.metricnet.comYou Can Reach MetricNet…By Phone…703-992-7559On Our Website…www.metricnet.comOr E-mail us…info@metricnet.com

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