Free Desktop Support Training Series | Industry Megatrends 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

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Free Desktop Support Training Series | Industry Megatrends in IT Support | MetricNet Certified

  1. 1. Industry Megatrends:A Benchmarking Perspective
  2. 2. 1© MetricNet, LLC, www.metricnet.com20 Years of Help Desk DataMore than 1,200 Help Desk BenchmarksGlobal Database30 Key Performance IndicatorsNearly 80 Industry Best Practices
  3. 3. 2© MetricNet, LLC, www.metricnet.comThen and Now: 20 Years of Benchmarking MetricsKey PerformanceIndicatorIndustry Average Performance1988 2007Monthly Contacts perEnd-User0.79 1.92Cost per Contact $9.57 $24.19Average Handle Time 6:27 12:31Resolved at Level 1 37% 71%Starting Agent Salaries(2007 dollars)$27,280 $36,115Help Desk Cost perEnd-User per Year$97 $584
  4. 4. 3© MetricNet, LLC, www.metricnet.comThe 20 Year Trend in Help Desk BudgetsHelp Desk budgets have grown from 0.7% to 4.9% of corporate IT spending over the last 20 years.0.0%1.0%2.0%3.0%4.0%5.0%6.0%HelpDeskas%ofITBudget1988 1993 1998 2003 20070.7%1.6%3.0%3.9%4.9%A 7 Fold Increase in Help Desk Budgets!
  5. 5. The Underlying Megatrends4© MetricNet, LLC, www.metricnet.com
  6. 6. 5© MetricNet, LLC, www.metricnet.comSo What’s Going on Here?Industry Megatrends: The DriversIncreasing awareness and understanding of help desk TCO (Total Cost of Ownership)Help Desk evolving from a support to a strategic role in the enterpriseThe growing importance of the help desk in shaping end-user opinions on IT
  7. 7. 6© MetricNet, LLC, www.metricnet.comA Primer on Help Desk TCOSupport LevelCost per IncidentResolvedVendorDesktop SupportField Support(inside company)Level 2(outside help desk)Help Desk$466$138$62$41$24
  8. 8. 7© 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 desks is theelimination of incoming calls Help desk anticipatesproblems and takes action toprevent occurrence A proactive mentality prevails Users are given tools to solvetheir own problems Call volume typically beginsto decline at this stage Problem complexity increases Customer enthusiasmis the goal 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 begins tolevel offSupport Stage Growth Stage Strategic StageThe Help Desk Evolution
  9. 9. 8© MetricNet, LLC, www.metricnet.comWhat Drives End-User Perceptions of IT?84%47%31% 29%22%8%0%20%40%60%80%100%Help Desk DesktopSupportNetworkOutagesQuality ofDesktopTools(Hardwareand Software)Quality ofEnterpriseApplicationsIT Training%SayingVeryImportant84% of end-users cite the help desk as a primary factorin shaping their opinions of corporate IT
  10. 10. The Resulting Megatrends9© MetricNet, LLC, www.metricnet.com
  11. 11. 10© MetricNet, LLC, www.metricnet.comSo What are the Implications?Industry Megatrends: The ResultIncreased Emphasis on First Contact Resolution (FCR)Strategic Application of Key Performance Indicators (KPI’s)Investments in Agent DevelopmentNew Models for Measuring Help Desk ValueRenewed Emphasis on Internal MarketingIncreased Starting Salaries for Agents
  12. 12. 11© MetricNet, LLC, www.metricnet.comIncreased Emphasis on First Contact Resolution20%40%60%80%100%20% 40% 60% 80% 100%First Contact ResolutionCustomerSatisfaction
  13. 13. 12© 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 X costs, declines The cost of resolution at level X is typically 2X to 10X greater than at level 1LOWERHIGHERCOST HIGHERTotal Cost per ContactFIRST LEVELRESOLUTION RATEFirst Level Resolution is Closely RelatedLevel 1 Cost per ContactTotal Level X CostCOSTPERCONTACT
  14. 14. 13© MetricNet, LLC, www.metricnet.comThe Economics of First Level ResolutionResolved At % # Cost/Contact CostHelp Desk 60.0% 3,000 $24 $120,000Level 2 (outside Help Desk) 20.0% 1,000 $41 $41,000Desktop Support 10.0% 500 $62 $31,000Field Support (inside company) 8.0% 400 $138 $55,200Vendor 2.0% 100 $466 $46,600Total 100.0% 5,000 $293,800Resolved At % # Cost/Contact CostHelp Desk 70.0% 3,500 $26 $130,000Level 2 (outside Help Desk) 15.0% 750 $41 $30,750Desktop Support 7.5% 375 $62 $23,250Field Support (inside company) 6.0% 300 $138 $41,400Vendor 1.5% 75 $466 $34,950Total 100.0% 5,000 $260,350Scenario 1Scenario 2Scenario 2 yields a savings of $33,450/month or $401,400/year!
  15. 15. 14© MetricNet, LLC, www.metricnet.com4321CustomerEnthusiasmStrategic Application of Key Performance IndicatorsMeasureDiagnosePrescribeImplementModelComponent Description1. MeasureMeasure helpdeskperformance onan ongoing basis2. DiagnoseBenchmarkperformance andconduct a gapanalysis3. PrescribeDefine actions toclose the gap4. ImplementImplement youraction plan andimproveperformance
  16. 16. 15© MetricNet, LLC, www.metricnet.comKPI’s: Which Ones Really Matter? Cost/contactCostProductivityQualityCall Handling Agent utilization Customer satisfaction First contact resolution rateAgent  Agent SatisfactionRead MetricNet’s whitepaper on Help Desk Performance Metrics. Go to www.metricnet.com to get your copy!Aggregate Balanced scorecard Cost vs. Quality
  17. 17. 16© MetricNet, LLC, www.metricnet.comThe Balanced ScorecardStep 1Six criticalperformancemetrics have beenselected for thescorecardStep 2Each metric has beenweighted according to itsrelative importanceStep 3For each performance metric,the highest and lowestperformance levels in thebenchmark are recordedStep 4Your actualperformance foreach metric isrecorded in thiscolumnStep 5Your score for eachmetric is thencalculated: (worst case– actual performance) /(worst case –best case)X 100Step 6Your balanced score for eachmetric is calculated: metricscore X weightingWorst Case Best CaseCost/Contact 25.0% $35.00 $6.00 $18.44 57.1% 14.3%Customer Satisfaction 25.0% 60.0% 97.0% 73.2% 35.7% 8.9%Agent Utilization 10.0% 30.0% 85.0% 51.7% 39.5% 3.9%First Contact Resolution Rate 15.0% 25.0% 95.0% 68.3% 61.9% 9.3%Agent Satisfaction 20.0% 34.6% 88.3% 74.0% 73.4% 14.7%Average Speed of Answer (sec) 5.0% 140.0 10.0 52.0 67.7% 3.4%Total 100.0% N/A N/A N/A N/A 54.5%MetricScoreBalancedScorePerformance MetricMetricWeightingBenchmarkPerformance Range Your ActualPerformance
  18. 18. 17© MetricNet, LLC, www.metricnet.comYour Help DeskPerformancePerformance 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!
  19. 19. 18© MetricNet, LLC, www.metricnet.comCall Abandonment Rate vs. Customer Satisfaction0.0%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
  20. 20. 19© MetricNet, LLC, www.metricnet.comCall Abandonment Rate vs. Cost per Contact$0.00$10.00$20.00$30.00$40.00$50.000.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%Call Abandonment RateCostperContact
  21. 21. 20© MetricNet, LLC, www.metricnet.comInvestments in Agent Development0.0%20.0%40.0%60.0%80.0%0 20 40 60 80 100Veteran Agent Training HoursAnnualAgentTurnover$0.00$8.00$16.00$24.00$32.00$40.000 75 150 225 300 375New Agent Training HoursCostperContact0.0%20.0%40.0%60.0%80.0%100.0%0 10 20 30 40 50 60 70Veteran Agent Training HoursFirstCallResolution20%40%60%80%100%0 50 100 150 200 250 300 350New Agent Training HoursCustomerSatisfaction
  22. 22. 21© MetricNet, LLC, www.metricnet.comNew Models for Measuring Help Desk ValueHelp Desk value models Cost of Service Money saved End user productivityExample: End User Productivity 2,600 end users generating 5,000 contacts per month Help desk saves each end user an average of 1 hour10 minutes per contact The equivalent of 5,833 productive hours saved permonth That’s 33.7 FTE’s per year…or more than 1% ofpayroll!
  23. 23. 22© MetricNet, LLC, www.metricnet.comRenewed Emphasis on Internal MarketingLOWER COST HIGHERACTUAL VALUEPERCEIVEDVALUEHIGHERLOWERPerceived Value > Actual ValuePerceived Value < Actual Value
  24. 24. 23© MetricNet, LLC, www.metricnet.comIncreased Starting Salaries for Agents$0.00$10.00$20.00$30.00$40.00$50.00$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000Agent Starting SalariesCostperContact
  25. 25. 24© MetricNet, LLC, www.metricnet.comThe Bottom Line on Help Desk Megatrends The Help Desk is now being managed as a strategicasset within the enterprise One that can reduce the overall cost of IT And dramatically improve the productivity of end-users Strategic Help Desks have a number of successfactors in common1. Integrated into the IT value chain2. An understanding of the economics of Help Desk TCO3. Active efforts to maximize First Contact, and First Levelresolution rates4. Use performance metrics diagnostically5. Invest in agent training, coaching, and career pathing6. Have active internal marketing efforts7. And aggressively promote and communicate help desk value
  26. 26. About MetricNet:Your Benchmarking Partner25© MetricNet, LLC, www.metricnet.com
  27. 27. 26© MetricNet, LLC, www.metricnet.comJeff 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 IBM, Bankof America, and General Motors. Prior to co-founding MetricNet,Mr. Rumburg was president and founder of The Verity Group, aninternational management consulting firm specializing in ITbenchmarking. While at Verity, Mr. Rumburg launched a number ofsyndicated benchmarking services that provided low costbenchmarks to more than 1,000 corporations worldwide.Your Presenter: Jeff RumburgMr. Rumburg has also held a number of positions of increasing responsibility at META Group, andGartner, Inc. As a vice president at Gartner, Mr. Rumburg led a project team that reengineeredGartners global benchmarking product suite. And as vice president at META Group, Mr.Rumburgs career was focused on business and product development for IT benchmarking. Mr.Rumburgs education includes an M.B.A. from the Harvard Business School, an M.S. magna cumlaude in Operations Research from Stanford University, and a B.S. magna cum laude inMechanical Engineering. He is author of A Hands-On Guide to Competitive Benchmarking: ThePath to Continuous Quality and Productivity Improvement, and has taught graduate-levelengineering and business courses.
  28. 28. 27© MetricNet, LLC, www.metricnet.comMore than 30 years of Benchmarking ExperienceMetricNet is dedicated to helping business people worldwidemanage their organizations more efficiently and effectively. Byproviding benchmarks, performance metrics, scorecards andbusiness data to managers in all industries and across allfunctional areas, MetricNet enables you to: Benchmark your performance vs. other companies inside andoutside of your industry Track and trend your organizations performance Improve your performance using diagnostic benchmarks Establish performance targets that are in line with industryaverages or best practices Drive accountability for key personnel using metrics-basedperformance goals Demonstrate measurable performance improvement overtime
  29. 29. 28© MetricNet, LLC, www.metricnet.comYou Can Reach MetricNet…By Phone…703-992-7559On Our Website…www.metricnet.comOr E-mail us…info@metricnet.com
  30. 30. 29© MetricNet, LLC, www.metricnet.comThank You!We look forwardto serving you!

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