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Measuring service delivery with a client focused approach - BrightTALK Webcast

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Delivering quality is a standard for success within any IT service organization. But how does one measure success? To measure success, IT service organizations often report on KPI's and SLA's, and these reports are usually based on their own performance. One risk of this approach towards measuring and reporting is that clients are no longer the focus, even though the service is intended for them. Reporting should focus on the experience of clients instead.

This presentation focuses on how the IT organization can best acquire a full insight into its own service by combining measuring and reporting with a client-focused approach. (presented by Gökhan Tuna on a BrightTALK Webcast: http://www.brighttalk.com/community/it-service-management/webcast/22224)

Published in: Business, Technology

Measuring service delivery with a client focused approach - BrightTALK Webcast

  1. 1. Are your clients reallysatisfied?“Measuring service delivery with aclient-focused approach”
  2. 2. Program• What is ‘quality’?• The SERVQUAL-model• How to measure quality?• Questions and discussion
  3. 3. What’s the difference between amagician and a service organization? Gökhan Tuna, TOPdesk
  4. 4. What’s the difference between a magician and a service organization?A magician makes things unvisible.A service organization tries to makeeverything as visible as possible. Gökhan Tuna, TOPdesk
  5. 5. Client focused =Delivering quality Gökhan Tuna, TOPdesk
  6. 6. Client focused = Delivering quality…what is quality? Gökhan Tuna, TOPdesk
  7. 7. Philosophical approachFor example:“Music composed byBeethoven is of a highquality, but we still don’tknow why” Gökhan Tuna, TOPdesk
  8. 8. Philosophical approachScientifically interesting,but practically useless:- Quality can not beexplained nor measured Gökhan Tuna, TOPdesk
  9. 9. Technical approach • Frederick W. Taylor laid the foundations in: ‘The Principles of Scientific Management’ (1911)Gökhan Tuna, TOPdesk
  10. 10. Technical approach • Quality can be seen as an objective standard that can be measured. • Any divergence from the standard means a reduction in quality.Gökhan Tuna, TOPdesk
  11. 11. Client-focused approach• Quality is subjective and depends on the client’s individual experience Gökhan Tuna, TOPdesk
  12. 12. Client-focused approach• Joseph M. Juran, expert in quality management: “The quality of a service is good when the client is convinced that it’s good.” Gökhan Tuna, TOPdesk
  13. 13. ITIL v2Quality is the whole setof qualities andcharacteristicsof a product or servicethat are of interest tothe satisfactionof agreed or self-evidentneeds Gökhan Tuna, TOPdesk
  14. 14. ITIL v3Utility =what does the clientget?Warranty = in what waydoes it get delivered? Gökhan Tuna, TOPdesk
  15. 15. What is quality? Gökhan Tuna, TOPdesk
  16. 16. What is quality? Quality =Percieved Service – Expected Service Gökhan Tuna, TOPdesk
  17. 17. What is quality? Quality = Percieved Service – Expected ServiceWhat is the cause of a low quality service?1. Shortcomings of a service organization2. The result of influences towards the customers (“overpromising”) Gökhan Tuna, TOPdesk
  18. 18. Word of mouth Personal needs Past experience communications Expected serviceCustomer Perceived serviceOrganizationServiceorganization Service delivery Translation of instructions into actions Translation of strategy into procedures Formulation of strategy by the management Gökhan Tuna, TOPdesk
  19. 19. Word of mouth Personal needs Past experience communications Expected service Quality?Customer Perceived serviceOrganizationServiceorganization Service delivery Translation of instructions into actions Translation of strategy into procedures Formulation of strategy by the management Gökhan Tuna, TOPdesk
  20. 20. How to measure quality? Gökhan Tuna, TOPdesk
  21. 21. EXAMPLE #1Service Performance Metric:ASA (Average Speed toAnswer):Average time (usually inseconds) it takes for a call tobe answered by the servicedesk Gökhan Tuna, TOPdesk
  22. 22. EXAMPLE #1KPI:Phone calls are to beanswered within 6 seconds Gökhan Tuna, TOPdesk
  23. 23. EXAMPLE #1Practice:Service desk employeeanswers phone calls quickly,but puts the caller on hold. Gökhan Tuna, TOPdesk
  24. 24. EXAMPLE #1Conclusion:KPI achieved!But: are clients satisfied? Gökhan Tuna, TOPdesk
  25. 25. How to measure quality?• IT organizations are often stuck to the technical approach of measuring quality Gökhan Tuna, TOPdesk
  26. 26. How to measure quality?• IT organizations are often stuck to the technical approach of measuring qualityPossible danger:• One-sided view• Losing sight of reality Gökhan Tuna, TOPdesk
  27. 27. EXAMPLE #2Service Level Agreement:99% uptime for a CRMapplication in a 24/7 servicewindow Gökhan Tuna, TOPdesk
  28. 28. EXAMPLE #2Practice:CRM application commonlyused during office hours (9am – 5 pm) Gökhan Tuna, TOPdesk
  29. 29. EXAMPLE #2Incident/Failure:Due to overuse during officehours the application needsa restart twice a dayThe restart takes appr. 5minutes, but unsaved datafor users are lost Gökhan Tuna, TOPdesk
  30. 30. EXAMPLE #2SLA measurement:100% Uptime = 1.080minutes per weekDowntime in example #2 =50 minutes per week Gökhan Tuna, TOPdesk
  31. 31. EXAMPLE #2 Gökhan Tuna, TOPdesk
  32. 32. EXAMPLE #2Conclusion:Uptime = 99.5%SLA achieved!But: are clients satisfied? Gökhan Tuna, TOPdesk
  33. 33. Word of mouth Personal needs Past experience communications Expected serviceCustomer Perceived serviceOrganizationServiceorganization Service delivery Translation of instructions into actions Translation of strategy into procedures Formulation of strategy by the management Gökhan Tuna, TOPdesk
  34. 34. Word of mouth Personal needs Past experience communications Expected serviceCustomer Perceived serviceOrganizationServiceorganization Service delivery Service Quality Translation of instructions into actions Translation of strategy into procedures Formulation of strategy by the management Gökhan Tuna, TOPdesk
  35. 35. Word of mouth Personal needs Past experience communications Expected serviceCustomer Perceived service Client Satisfaction?OrganizationServiceorganization Service delivery Service Quality Translation of instructions into actions Translation of strategy into procedures Formulation of strategy by the management Gökhan Tuna, TOPdesk
  36. 36. How to measure quality? Gökhan Tuna, TOPdesk
  37. 37. THE SERVQUAL-MODEL (Zeithaml, Parasuraman, Berry; 1985 – 1994)• Service vs Manufacturing• The model offers a way to measure the perception of a customers towards the quality of a service‘• Quality of a service has been split up into five dimensions that customers experience Gökhan Tuna, TOPdesk
  38. 38. 1. TANGIBLES Physical facilities, equipment andthe appearance of personnel. Gökhan Tuna, TOPdesk
  39. 39. 2. RELIABILITY Ability to perform the promised service dependably and accurately. Gökhan Tuna, TOPdesk
  40. 40. 3. RESPONSIVENESS Willingness to help customers and provide prompt service. Gökhan Tuna, TOPdesk
  41. 41. 4. ASSURANCEKnowledge and courtesy ofemployees and their ability to inspire trust and confidence.Assurance is split up into four subdimensions Gökhan Tuna, TOPdesk
  42. 42. 4A. COMPETENCE The expertise of the personnel and the extent of knowledge that they own. Gökhan Tuna, TOPdesk
  43. 43. 4B. COURTESY The kindness, politeness and affection of the personnel that has contact with the customer Gökhan Tuna, TOPdesk
  44. 44. 4C. CREDIBILITY The trust that the customer has with respect to the service supplier Gökhan Tuna, TOPdesk
  45. 45. 4D. SECURITY The freedom of danger, risk or doubt, while taking part of the service Gökhan Tuna, TOPdesk
  46. 46. 5. EMPATHYCaring and individualized attention that the firm provides to its customers. Empathy is split up into three subdimensions Gökhan Tuna, TOPdesk
  47. 47. 5A. ACCESS The possibility to approach the services supplier and the ease of contact Gökhan Tuna, TOPdesk
  48. 48. 5B. COMMUNICATION The ability of the services supplier to communicate with the customer in a way in which the customer understands it Gökhan Tuna, TOPdesk
  49. 49. 5C. UNDERSTANDING THE CUSTOMER The extent of individual care and attention that the services supplier gives to their customers Gökhan Tuna, TOPdesk
  50. 50. Performance Service Satisfaction (Q)Expectation Gökhan Tuna, TOPdesk
  51. 51. Performance Service Satisfaction (Q)Expectation Unspoken Expectation Gökhan Tuna, TOPdesk
  52. 52. EXAMPLE #3Service Performance Metric:FCR (First Call Resolution):Percentage of incoming callsthat can be resolved withoutthe use of a callback orwithout having the caller callback the helpdesk to finishresolving the case Gökhan Tuna, TOPdesk
  53. 53. EXAMPLE #3KPI:60% of incoming calls needto be resolved during thephone call Gökhan Tuna, TOPdesk
  54. 54. EXAMPLE #3Practice:Service desk employees failto meet the KPI, but providesolutions for callers withinthe next hour in 70% of thetime Gökhan Tuna, TOPdesk
  55. 55. EXAMPLE #3Gökhan Tuna, TOPdesk
  56. 56. EXAMPLE #3Conclusion:KPI breached!But: are clients unsatisfied? Gökhan Tuna, TOPdesk
  57. 57. How to measure quality?• Perform periodical client satisfaction researches as an addition to quantitative reports Gökhan Tuna, TOPdesk
  58. 58. Gökhan Tuna, TOPdesk
  59. 59. The average score for ‘Tangibles’ on a scalefrom one to five is: 3.2The average score for ‘Reliability’ on a scalefrom one to five is: 3.0The average score for ‘Responsiveness’ on ascale from one to five is: 2.4The average score for ‘Assurance’ on a scalefrom one to five is: 4.1The average score for ‘Empathy’ on a scalefrom one to five is: 3.4 Gökhan Tuna, TOPdesk
  60. 60. How to measure quality?• Perform periodical client satisfaction researches as an addition to quantitative reportsAdvantages:• Whole view of service delivery• Making comparisons in time• Making comparisons between the service organization and the customer organization Gökhan Tuna, TOPdesk
  61. 61. ITIL v3Utility =what does the clientget?Warranty = in what waydoes it get delivered? Gökhan Tuna, TOPdesk
  62. 62. Word of mouth Personal needs Past experience communications Expected serviceCustomer Perceived service Client SatisfactionOrganizationServiceorganization Service delivery Service Quality Translation of instructions into actions Translation of strategy into procedures Formulation of strategy by the management Gökhan Tuna, TOPdesk
  63. 63. THANK YOU FOR YOUR ATTENTION Questions and discussion

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