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Past and present | 25 years of Service Desk KPIs

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In this presentation, viewers will learn about the most common service desk KPIs, changing averages in service desk performance, the evolution of KPIs, the holistic discipline of performance measurement and management, and what today’s KPIs tell us about the future.

Published in: Business

Past and present | 25 years of Service Desk KPIs

  1. 1. Past and Present 25 Years of Service Desk KPI’s Jeff Rumburg
  2. 2. Your Speaker: Jeff Rumburg © 2015 MetricNet, LLC, www.metricnet.com  Co Founder and Managing Partner, MetricNet, LLC  Winner of the 2014 Ron Muns Lifetime Achievement Award  Former CEO, The Verity Group  Former Vice President, Gartner  Founder of the Service Desk Benchmarking Consortium  Author of A Hands-On Guide to Competitive Benchmarking  Harvard MBA, Stanford MS 2
  3. 3. 27 Years of IT Service and Support Benchmarking Data More than 3,000 IT Service and Support Benchmarks Global Database 70+ Key Performance Indicators More than 120 Industry Best Practices 3© 2015 MetricNet, LLC, www.metricnet.com
  4. 4. The Premise Behind Service Desk KPI’s We’ve all heard the expression… “If you’re not measuring it, you’re not managing it!” But there’s more to the story…Lots more! 4© 2015 MetricNet, LLC, www.metricnet.com
  5. 5. Business Effectiveness ROI 5 Service Desk KPI’s Through the Decades © 2015 MetricNet, LLC, www.metricnet.com 1970’s 1980’s 1990’s 2000’s 2010- 2015 2015 & Beyond Bag & Tag Log & Dispatch Service Levels The Rise of Quality Metrics Renaissance Cause & Effect Process Metrics TCO Service and Support as a Business Discipline
  6. 6. 6 1970’s: Metrics…What Metrics? © 2015 MetricNet, LLC, www.metricnet.com
  7. 7. 7 1980’s: Service Levels, Quality and AHT © 2015 MetricNet, LLC, www.metricnet.com Service LevelQuality  Average Speed of Answer (ASA)  Call Abandonment Rate  Customer Satisfaction  Call Quality Call Handling  Average Call Handle Time
  8. 8. ASA Drives Cost per Contact $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 0 50 100 150 200 250 Average Speed of Answer (sec) CostperContact 8© 2015 MetricNet, LLC, www.metricnet.com
  9. 9. 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 $45.00 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Call Abandonment Rate CostperContact 9© 2015 MetricNet, LLC, www.metricnet.com
  10. 10. ASA vs. Customer Satisfaction 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 0 5% 10% 15% 20% ASA as a % of Total Handle Time CustomerSatisfaction 10© 2015 MetricNet, LLC, www.metricnet.com
  11. 11. Call Abandonment Rate vs. Customer Satisfaction 0.0% 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 CustomerSatisfaction 11© 2015 MetricNet, LLC, www.metricnet.com
  12. 12. 1990’s: A Metrics Renaissance  Cost per Contact  Cost per Minute of Handle Time Cost Productivity Service Level Quality Call HandlingAgent  Average speed of answer (ASA)  Call abandonment rate  % Answered within 30 Seconds  Average hold time  Average time to abandon  Percent of calls blocked  Contacts per Agent per Month  Agent Utilization  Agents as % of Total Service Desk Headcount  Customer Satisfaction  Call Quality  First Contact Resolution Rate  Agent Occupancy  Schedule Adherence  Annual Agent Turnover  Daily Absenteeism  New Agent Training Hours  Annual Agent Training Hours  Agent Tenure  Agent Job Satisfaction  Average Handle Time  User Self-Help Rate  IVR completion Rate  Percent of calls transferred 12© 2015 MetricNet, LLC, www.metricnet.com
  13. 13. Widespread Reporting, Tracking, and Trending 80% 65% $17.00 AGENT UTILIZATION J F M A M J J A FIRST CONTACT RESOLUTION J F M A M J J A COST PER CONTACT J F M A M J J A CUSTOMER SATISFACTION J F M A M J J A 5% 80% 90% CALL ABANDONMENT J F M A M J J A BALANCED SCORE J F M A M J J A COST PER CONTACT CUSTOMER SATISFACTION FIRST CALL RESOLUTION RATEAGENT UTILIZATION AGENT SATISFACTION CALL ABANDONMENT RATE 13© 2015 MetricNet, LLC, www.metricnet.com
  14. 14. Agent Utilization Drives Cost per Contact $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 20% 30% 40% 50% 60% 70% 80% Agent Utilization CostperContact 14© 2015 MetricNet, LLC, www.metricnet.com
  15. 15. First Contact Resolution Drives Customer Satisfaction 20% 40% 60% 80% 100% 20% 40% 60% 80% 100% First Contact Resolution CustomerSatisfaction 15© 2015 MetricNet, LLC, www.metricnet.com
  16. 16. New Agent Training Hours vs. First Contact Resolution 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 50 100 150 200 250 300 350 New Agent Training Hours FirstContactResolutionRate 16© 2015 MetricNet, LLC, www.metricnet.com
  17. 17. Annual Agent Training vs. First Contact Resolution 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 20 40 60 80 100 120 140 Annual Agent Training Hours FirstContactResolutionRate 17© 2015 MetricNet, LLC, www.metricnet.com
  18. 18. Service Desk KPI’s: Cause-and-Effect Cost/Contact Customer Satisfaction Agent Utilization First Contact Resolution Agent Satisfaction Coaching Career Path Training Hours Call Quality Handle Time Agents/ Total FTE’s Absenteeism/ Turnover First Level Resolution Scheduling Efficiency Service Levels: ASA and AR 18© 2015 MetricNet, LLC, www.metricnet.com
  19. 19. The Dilemma with Metrics in the 1990’s Lots and Lots of Data  But not enough analysis…  Not enough Insight…  And not enough Action!! 19© 2015 MetricNet, LLC, www.metricnet.com
  20. 20. The 2000’s: The Holistic Use of KPI’s The Historical Approach The Holistic Approach Measurement (75%) Analysis (15%) Prescription (7.5%) Action (2.5%) Measurement (5%) Analysis (20%) Prescription (30%) Action (45%) IncreasingValue! 20© 2015 MetricNet, LLC, www.metricnet.com
  21. 21. Unleashing the Enormous Power of Service Desk KPI’s The Central Question of the Early 2000’s… How do we turn Service Desk KPI’s into a Competitive Advantage? Better…Faster…Cheaper! 21© 2015 MetricNet, LLC, www.metricnet.com
  22. 22. The World-Class Service Desk Defined  Service 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  Minimizes Total Cost of Ownership (TCO)  Service Desk follows industry best practices  Industry best practices are defined and documented  Service Desk follows industry best practices  Every transaction adds value  A positive customer experience  Drives a positive view of IT overall 22© 2015 MetricNet, LLC, www.metricnet.com
  23. 23. Cost per Contact HigherLower Higher A World-Class Service Desk An “Average” Service Desk BEST-IN-CLASS PERFORMANCE CURVE AVERAGE PERFORMANCE CURVE The World-Class Service Desk Defined 23© 2015 MetricNet, LLC, www.metricnet.com
  24. 24. 24 Performance of Benchmarking Peer Group Determine How Best in Class Achieve Superiority Adopt Selected Practices of Best in Class Build a Sustainable Competitive Advantage The ultimate objective of benchmarking The Widespread Adoption of Benchmarking © 2015 MetricNet, LLC, www.metricnet.com COMPARE Capital Group Desktop Support Performance
  25. 25. The Goal of Benchmarking Cost per Ticket HigherLower Higher BEST-IN-CLASS PERFORMANCE CURVE AVERAGE PERFORMANCE CURVE 25© 2015 MetricNet, LLC, www.metricnet.com AFTER BENCHMARKING STARTING POINT: BEFORE BENCHMARKING
  26. 26. The 80/20 Rule for Service Desk KPI’s  Cost per ContactCost Productivity Quality Call Handling  Agent Utilization  Customer Satisfaction  First Contact Resolution Rate Agent  Agent Job Satisfaction Read MetricNet’s whitepaper on Service Desk Performance Metrics. Go to www.metricnet.com to get your copy! Aggregate  Balanced Scorecard TCO  First Level Resolution Rate 26© 2015 MetricNet, LLC, www.metricnet.com
  27. 27. Cost of Resolution: North American Averages Support Level Cost per Ticket Vendor Level 2: Desktop Support Field Support Level 3 IT (apps, networking, NOC, etc.) Level 1: Service Desk $471 $196 $85 $62 $22 27© 2015 MetricNet, LLC, www.metricnet.com
  28. 28. Shift Left Reduces Total Cost of Ownership 28© 2015 MetricNet, LLC, www.metricnet.com
  29. 29. Aggregate Metrics: The Balanced Scorecard Step 1 Six critical performance metrics have been selected for the scorecard Step 2 Each metric has been weighted according to its relative importance Step 3 For each performance metric, the highest and lowest performance levels in the benchmark are recorded Step 4 Your actual performance for each metric is recorded in this column Step 5 Your score for each metric is then calculated: (worst case – actual performance) / (worst case – best case) X 100 Step 6 Your balanced score for each metric is calculated: metric score X weighting 29 Worst Case Best Case Cost per Contact 25.0% $55.28 $9.15 $21.83 72.5% 18.1% Customer Satisfaction 25.0% 63.7% 97.5% 77.2% 39.9% 10.0% Agent Utilization 15.0% 30.9% 64.4% 47.0% 48.0% 7.2% Net First Contact Resolution Rate 15.0% 51.8% 87.5% 70.2% 51.4% 7.7% Agent Job Satisfaction 10.0% 53.5% 91.5% 73.4% 52.4% 5.2% Average Speed of Answer 10.0% 192 13 60 73.5% 7.3% Total 100.0% N/A N/A N/A N/A 55.6% Performance RangeMetric WeightingPerformance Metric Balanced Score Your Performance Metric Score
  30. 30. 30© 2012 MetricNet, LLC, www.metricnet.com Benchmarking Your Overall Performance 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% BalancedScores High 86.5% Average ----- 50.3% Median 50.3% Low 13.8% Your Score 55.6% Balanced Scores Key Statistics 30© 2015 MetricNet, LLC, www.metricnet.com
  31. 31. The Service Desk Performance Trend 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ServiceDeskBalancedScore 12 Month Average Monthly Score 31© 2015 MetricNet, LLC, www.metricnet.com
  32. 32. 2010 – 2015: Metrics as a Foundation Block METRICS PEOPLE PROCESS TECH 32© 2015 MetricNet, LLC, www.metricnet.com
  33. 33. 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 3 4 5 Metrics Maturity Ranking DesktopSupportBalancedScore The Evidence for Metrics as a Foundation Block n = 143 ServiceDeskBalancedScorecard 33© 2015 MetricNet, LLC, www.metricnet.com
  34. 34. KPI’s for The Emergence of Lower Cost Channels 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 6 Months 1 Year 2 Years 3 Years 5 Years Time from Implementation %ofAllContacts % Live Agent % Email % IVR % Web Chat % Web Self-Service 34© 2015 MetricNet, LLC, www.metricnet.com
  35. 35. 35 The Paradox of IT Support  Less than 5% of all IT spending is allocated to end-user support  Service desk, desktop support, field support  This leads many to erroneously assume that there is little upside opportunity in IT support  The result is that most support organizations are managed with the goal of minimizing costs  But the most effective support strategies focus on maximizing value © 2015 MetricNet, LLC, www.metricnet.com Corporate IT Spending Breakdown 4% 96%: Non support functions End-User Support  Application Development  Application Maintenance  Network Operations  Mainframe and midrange Computing  Desktop Computing  Contract Services (e.g., disaster recovery)
  36. 36. The First ROI Methodology Published ROI = Return Investment = Savings Spending  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 the metric)  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 past business success 36© 2015 MetricNet, LLC, www.metricnet.com
  37. 37. 37 The Emergence of Service Desk as a Value Center  Responsible for cost control  Not responsible for…  Revenue generation  Profits  Investment decisions Cost Center Value Center © 2015 MetricNet, LLC, www.metricnet.com VS.  Creates value  Demonstrates value  Cost savings  Cost Benefit Analysis  ROI Analysis  The vast majority of service and support organizations operate as cost centers  They are expected to control costs, but are not expected to make any explicit financial contribution to the enterprise  The focus in a cost center is on minimizing costs  The focus in a Value Center is on maximizing value!  The industry megatrend now is on creating and demonstrating economic value
  38. 38. 38© 2012 MetricNet, LLC, www.metricnet.com Exploit Value Metrics Focused Proactive Marketing 2015 and Beyond: Service and Support as a Business
  39. 39. Shift Left Reduces Total Cost of Ownership 39© 2015 MetricNet, LLC, www.metricnet.com
  40. 40. 40 0 10 20 30 40 50 60 70 0 1 2 3 4 5 ProductiveHoursLostperEmployeeperYear Quality of Support Drives End-User Productivity 1 (top) 2 3 4 (bottom) Customer Satisfaction 93.5% 84.5% 76.1% 69.3% First Contact Resolution Rate 90.1% 83.0% 72.7% 66.4% Mean Time to Resolve (hours) 0.8 1.2 3.6 5.0 Customer Satisfaction 94.4% 89.2% 79.0% 71.7% First Contact Resolution Rate 89.3% 85.6% 80.9% 74.5% Mean Time to Resolve (hours) 2.9 4.8 9.4 12.3 Service Desk Desktop Support Performance Quartile Support Function Key Performance Indicator 37.4 46.9Average Productive Hours Lost per Employee per Year 17.1 25.9 Performance Quartile n = 60 © 2015 MetricNet, LLC, www.metricnet.com
  41. 41. A Proactive Culture Aided by Metrics Some Common Proactive Behaviors  Root Cause Analysis / Closed Ticket Analysis  Marketing / Brand Management  Business Case Analysis for New Investments  Benchmarking  Goal-based Training  Cause-and-Effect Decision-making  Manage Agent Morale / Agent Job Satisfaction  Agent Scorecards 41© 2015 MetricNet, LLC, www.metricnet.com
  42. 42. 42© 2015 MetricNet, LLC, www.metricnet.com The Role of Marketing in IT Support We’ve all heard the expression… “Expectations Not Set… are Expectations Not Met! So, let’s get serious about proactively managing expectations!
  43. 43. 43© 2015 MetricNet, LLC, www.metricnet.com Perception vs. Reality in IT Support LOWER COST HIGHERACTUAL VALUE PERCEIVED VALUE HIGHER LOWER Perceived Value > Actual Value Perceived Value < Actual Value
  44. 44. Perception Is Almost Always Worse Than the Reality LOWER COST HIGHERACTUAL VALUE PERCEIVED VALUE HIGHER LOWER Perceived Value > Actual Value Perceived Value < Actual Value A Common (but Dangerous) Operating Position 44© 2015 MetricNet, LLC, www.metricnet.com
  45. 45. Brand Management in IT Support LOWER COST HIGHERACTUAL VALUE PERCEIVED VALUE HIGHER LOWER Perceived Value > Actual Value Perceived Value < Actual Value #1 Operational Effectiveness #2Brand Management 45© 2015 MetricNet, LLC, www.metricnet.com
  46. 46. Closing the Perception Gap LOWER COST HIGHERACTUAL VALUE PERCEIVED VALUE HIGHER LOWER Perceived Value > Actual Value Perceived Value < Actual Value Closing the Perception Gap Where you Should Be Where you Are 46© 2015 MetricNet, LLC, www.metricnet.com
  47. 47. 47© 2015 MetricNet, LLC, www.metricnet.com Brand Management: The Five W’s 1. Who – Who are the Key Stakeholder Groups? 2. What – What are the Key Messages? 3. When – When are You Going to Communicate Them? 4. Where/How – Where/How do You Reach the Stakeholders? 5. Why – Why are We Doing This?
  48. 48. Key Success Factors in Marketing IT Support Messages Timing Timing Frequent Contact • New employee orientation • At session log-in • During training • During the incident • At scheduled sessions Messages Multiple Messages • Services • Major initiatives • Performance Levels • FAQ’s • Success Stories Channels Use All Available • Log-in messages • Newsletters • Reference Guides • Asset tags • Surveys • User Liaisons Timing 48© 2015 MetricNet, LLC, www.metricnet.com
  49. 49. 49© 2015 MetricNet, LLC, www.metricnet.com The Most Common Communication Vehicles Where is IS failing to meet XXX needs? Rank Fails Survey Question 1 - 22.1% 24. Availability of shared resources 2 - 16.2% 30. Your satisfaction with remote access services 3 - 14.7% 17. Continue using the IS Support Center 4 - 13.2% 28. Overall satisfaction with computing/network services 5 - 11.8% 21. The response to requested software changes 5 - 11.8% 29. Satisfaction with the current E-Mail services 7 - 10.3% 09. Current services provided by IS 8 - 8.8% 19. Developers understand your business requirements 9 - 8.8% 23. Reliability of business applications 10 - 7.4% 08. IS communication of products and services 10 - 7.4% 22. The response to requested enhancements 12 - 4.4% 07. IS value compared to the cost of services 12 - 4.4% 14. Value of IS Business Consultants 12 - 4.4% 20. Responsiveness to application maintenance requests 15 - 2.9% 12. Acquisition process for IT 15 - 2.9% 18. Applications provide the necessary functionality 12% Avg. 2.9 % of XXX’s said issue18. failed to meet expectations. Mean for ALL “fails” Sort field sequence field varriance duplicate rank Title of List above average below average Selected Issues Newsletters Brown Bag Sessions Leave Behinds Business Unit Liaisons Surveys Log-in Screens Webcasts FAQ Site
  50. 50. 50© 2015 MetricNet, LLC, www.metricnet.com Messaging Summary  Managing the gap between perception and reality is fairly straightforward  It doesn’t take a lot of time, or cost a lot of money  But it is critically important  The success of your support organization depends as much on your image, as it does on your actual performance!  The Benefits of effective Internal Marketing include:  The Opportunity to convey your value proposition!  Customer loyalty and positive word-of-mouth referrals  Credibility, which leverages your ability to Get Things Done!  A Positive Image for IT overall  High levels of Customer Satisfaction
  51. 51. © 2015 MetricNet, LLC, www.metricnet.com 51 So Why Are We Doing This?
  52. 52. 84% 47% 31% 29% 22% 19% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Service Desk Desktop Support Network Outages VPN Training Enterprise Applications Desktop Software Factors Contributing to IT Customer Satisfaction %SayingVeryImportant  n = 1,044  Global large cap companies  Survey type: multiple choice  3 responses allowed per survey  84% cited the service desk as a very important factor in their overall satisfaction with corporate IT  47% cited desktop support as a very important factor in their overall satisfaction with corporate IT Support Drives Customer Satisfaction for All of IT 52© 2015 MetricNet, LLC, www.metricnet.com
  53. 53. Questions?
  54. 54. Thank you for attending this session. Don’t forget to complete an evaluation form!
  55. 55. Thank You!
  56. 56. Questions?
  57. 57. About MetricNet Your Benchmarking Partner 57
  58. 58. Your Speaker: Jeff Rumburg © 2015 MetricNet, LLC, www.metricnet.com  Co Founder and Managing Partner, MetricNet, LLC  Winner of the 2014 Ron Muns Lifetime Achievement Award  Former CEO, The Verity Group  Former Vice President, Gartner  Founder of the Service Desk Benchmarking Consortium  Author of A Hands-On Guide to Competitive Benchmarking  Harvard MBA, Stanford MS 58
  59. 59. Benchmarking is MetricNet’s Core Business Call Centers Telecom Information Technology Satisfaction  Customer Service  Technical Support  Telemarketing/Telesales  Collections  Service Desk  Desktop Support  Field Support  Price Benchmarking  Customer Satisfaction  Employee Satisfaction 59© 2015 MetricNet, LLC, www.metricnet.com
  60. 60. 27 Years of IT Service and Support Benchmarking Data More than 3,000 IT Service and Support Benchmarks Global Database 70+ Key Performance Indicators More than 120 Industry Best Practices 60© 2015 MetricNet, LLC, www.metricnet.com
  61. 61. Meet a Sampling of Our Clients MetricNet Conducts benchmarking for IT Service and Support organizations worldwide, and across virtually every industry sector. 61© 2015 MetricNet, LLC, www.metricnet.com
  62. 62. You Can Reach MetricNet… By Phone… 703-992-7559 On Our Website… www.metricnet.com Or E-mail us… info@metricnet.com 62© 2015 MetricNet, LLC, www.metricnet.com
  63. 63. Thank You!

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