METRICS

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• METRICS
• A TOP DOWN, BALANCED SCORECARD APPROACH FOR THE
  SUPPORT CENTER

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• How important are metrics to the support
  industry?
• Strategic Advisory Board-whitepaper
• Most frequent questions received by HDI member
  services center
• First chapter in the book Implementing Service
  and Support Management Processes A Practical
  Guide
• Popular topic for the HDI Executive Forum
• SPIN content delivered by Ron Munslargest
  attendance so far
• Newest member deliverableMetrics Series

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• So, what is a metric???
• A metric is a measure of anything.

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• KPI (Key Performance Indicator)
• A Key Performance Indicator is a metrichowever,
  a metric is not always a KPI.
• A KPI is a measurement that matters and is
  ideally actionable.

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• Dashboard
• A tool used by managers and executives to
  monitor business performance
• A dashboard is the critical delivery vehicle for
  performance metrics.

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• Balanced Scorecard (BSC)
• Provides a clear view as to what organizations
  should measure in order to balance the
  financial perspective with the service
  perspective.
• The BSC is a management system.

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• A company may have many metrics but few KPIs.
• How do we get to our short list of agreed upon
  key measures?

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• First you must ask,
• What do we value?
• Customers or Employees?
• Cost Control or Organizational Development?
• Service reputation or profitability?

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• Ive learned that you cant have everything and
  do everything at the same time.
• Oprah Winfrey

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• BSC model recognizes business complexities
• Multiple priorities often conflict
• Avoid single metric focus (i.e. cost/call)

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• The Process
• First, all participants need a clear and
  consistent understanding of the organizations
  overall high level strategies and culture.

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• Assembling a qualified team is a necessary
  requisite. The team should consist of not only
  IT management but also their business
  counterparts.
• If the CEO/COO is not directly involved, they
  should at least sign off on the finished
  scorecard.

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• Second, everyone on the team should know, What
  is this business trying to accomplish? What are
  the companys goals and objectives for the short
  and long term?

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• Third, determine the key business drivers

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• Fourth, determine what measures will tell you how
  well the organization is doing. What are the key
  performance indicators?

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• Finally, look at existing systems that will
  enable you to calculate and report your KPIs.

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• KPIs should offer a good mix of financial as
  well as operational measures.
• A BSC looks beyond financial measures.
• Financial measures generally look at the past
  (how the organization performed historically).
  Non financial measures frequently offer a good
  indicator of the future.

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• The goal of the Balanced Scorecard Service Model
  for the Support Center is to balance service
  goals and financial goals.

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• The key to a successful Support Center Balanced
  Scorecard Service Model is to maintain continued
  balanced improvement in all four quadrants over
  time.

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• Customer Satisfaction Goals
• Generally measured via customer surveys
• Primary survey is transaction based
• Secondary survey is a loyalty survey
• Overall customer satisfaction is one of the
  primary drivers in contract renewal rates for
  externally facing Support Centers.

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• Examples of Customer Satisfaction KPIs
• Accuracy/Timeliness/Courtesy/Skills
• Overall satisfaction
• Average speed to answer
• Abandon call
• Self-service tool utilization
• SLA performance

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• Employee Satisfaction Goals
• In any service business, the people who deliver
  that service are the essential product
• Average time to fully train a new employee in
  customer support ranges from a few months to a
  year or more
• Some turnover can be healthy... excessive
  turnover can have a significant negative impact
  on operations
• Employee surveys should be conducted once or
  twice a year.
• Companies that effectively manage employee
  satisfaction do not always have the highest pay
  scales for their industry or area.

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• Examples of Employee Satisfaction KPIs
• Turnover
• Sick days
• Employee satisfaction scores
• Training days per year
• Time to proficiency

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• Costs/Productivity Goals
• Our industry must agree on definitions and
  methods for developing cost metrics
• Valuable comparisons depend upon common
  definitions, common volumes, common costs and
  common methodologies
• Financial KPIs are dependent on calculating
  costs in terms of cost per unit of work and per
  service delivered
• Must be analyzed in conjunction with service
  goals

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• Examples of Costs/Productivity KPIs
• Costs per incident (by channel)
• Customers per Support FTE (full time employee)
• Incidents handled per Support FTE
• Utilization rate

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• Organizational Maturity Goals
• Most strategic and subjective of the four
  quadrants
• Focused on the structure, ability to change,
  quickness, responsiveness, and strategic
  positioning of support within the larger
  organization
• Enables customer and employee satisfaction with
  optimal cost structure
• All world class organizations are constantly
  challenging themselves to find ways to
  continuously improve their operational efficiency

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• Examples of Organizational Maturity KPIs
• Executive support
• Time to product proficiency
• Workforce diversity
• Problem elimination value
• Process formalization
• Certifications and standards efforts

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• Implementation of a BSC Service Model
• Review the listing of KPIs for each of the
  quadrantsKeep goals and strategies in mind
• Remember that success will depend on maintaining
  a documented model and tracking progress over
  time
• Keep it simple
• Analysis is the valuable part
• Intent should be to take action if action is
  warranted

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• SUMMARY
• Goals need to be agreed to by not only the
  Support Center but also the COO, CEO and/or CFO
• Objective is to have continuous, balanced
  improvement in all quadrants
• KPIs are tools and not objectives
• Reporting should go both up and down the chain of
  command
• The process can be applied to operations ranging
  from a simple internal IT Support Center to a
  larger multi-customer Support Center organization

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• HDI Update

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• MEMBERSHIP
• Expanded SupportWorld circulation
• Vertical market emphasis
• Surveys
• Forums
• Web presence
• Practices survey is available
• SAB new format for deliverables
• LC Officer Summit was last week

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• EVENTS
• ITIM 2005
• October in Orlando
• Produced solely by HDI
• Refocused content
• Emerging Technologies
• IT Leadership
• Network Optimization and Performance
• Infrastructure Management Technology Innovation
• Security, Governance and Compliance
• IT Service Management
• HDI 2006
• March 19 22 in Nashville

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• TRAINING
• New and improved curriculum for HDA Bootcamp (to
  include CSS)
• New Team Lead course
• Standards committee are set over 40 volunteers
• Exploring potential new courses including some
  ITIL based courses
• New LMS for online course management

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• New Initiatives
• Customer Satisfaction Survey Project
• Web Enhancements
• Navigation
• Presentation of Content
• Call for volunteers