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MONEYBALL FOR IT SUPPORT Using Data-Driven Management to Achieve World-Class Support. March 15, 2012 DFW Chapter of HDI Terry Allen

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Presentation on theme: "MONEYBALL FOR IT SUPPORT Using Data-Driven Management to Achieve World-Class Support. March 15, 2012 DFW Chapter of HDI Terry Allen"— Presentation transcript:

1 MONEYBALL FOR IT SUPPORT Using Data-Driven Management to Achieve World-Class Support. March 15, 2012 DFW Chapter of HDI Terry Allen

2 MONEYBALL Reshaping a laggard team into a world-class winner–with one of the lowest budgets Willingness to re-think baseball: how it is managed, how it is played, who is best suited to play it, and why. – Michael Lewis, author Which statistics are most correlated to winning games Focus on these success metrics and actually use them for recruiting, player development, and game-time decisions. Full management commitment

3 IT Support Centers A strong environment for data-driven management (analytics) Rich in under-used data and under-tracked processes There are efficiency and quality gains to be captured by uncovering and leveraging the value in existing systems and stores of data You cant manage what you dont measure Focus on desktop support as well as service desk

4 IT Support Centers Performance Management in the Support Center – Service Desk and Desktop Support A set of practices and tools used to systematically measure, improve, and manage the operation A means of defining and delivering metrics to every employee and stakeholder A process for aligning goals and objectives across all levels of the organization The means for management and individuals to diagnose and take action based on full information Why not? But not all measures are equally important Too often favor metrics that are easiest to get or those everyone uses And dont forget: You get what you measure

5 Metrics Average speed to answer*/service level (% within x seconds) Call abandonment rate* Contacts/Tickets handled/resolved per FTE* First call resolution* Average handling time/wrap up time Average response time* Resolution times by category/classification – Mean time to resolve* Percent of tickets reopened* Cost per contact/incident* First level resolution Staff turnover Staff absenteeism Staff utilization/Work time per ticket* Percent of day on incidents* Number of exchanges required to resolve* Customer satisfaction* Staff satisfaction* Training days per staff member* Percentage of tickets resolved by level* Percent of incidents caused by change Percent resolved Level 1* Average queue time per ticket* Ratio of staff per customer….. and many more……….

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7 Moneyball Metrics Not all measures are equally important (80/20) Watch out for analysis paralysis. What are the most meaningful measures? Less is more. Allows focus. What processes are intuitively managed that could be better run based on statistical facts? How would this affect your culture and how you hire, develop, promote, and field a support team based on these insights?

8 Moneyball Metrics Key to the value of Moneyball Metrics True potential = not just measure, but also: Track and trend performance over time Benchmark performance vs. self (and peers) Identify strengths and weaknesses Diagnose - understand the interrelationships and underlying drivers of performance Prescribe actions to improve performance Establish performance goals for both individuals and support team overall Become World-Class All metrics are worthless – unless you do something with them.

9 What is World-Class? Ranking among the foremost in the world First-rate, Exceptional, Superlative… Exceed Industry standards?

10 World-Class World-Class Goal of every business is to achieve the highest possible quality at the lowest possible cost. World-class implies optimization: Best quality/performance for the dollars available. Great quality at very high cost - just as low cost with low quality - is not world-class! Requires careful balance with calibration/benchmarking

11 World-Class Two primary measures of success – Prime Factors: Effectiveness and Efficiency, or Quality vs. Cost

12 Moneyball Metrics Best indicator of effectiveness/quality = Customer Satisfaction Best indicator of efficiency = Cost per Contact/Incident (fully burdened) – measure of Total Cost of Ownership Prime Moneyball Metrics – perhaps the only two that really matter World Class: Consistently exceed customer expectations Costs are managed at or below industry average levels So what are the key influencers of these prime factors?

13 Customer Satisfaction Single biggest driver of Customer Satisfaction is First Contact Resolution Training, Knowledge Management, Incentives

14 Customer Satisfaction Single biggest driver of Customer Satisfaction is First Contact Resolution Training, Knowledge Management, Incentives And the next most critical driver of Customer Satisfaction is Staff Satisfaction Measure at least 2/year Training, Coaching, Career Path, Recogniti on

15 Customer Satisfaction Single biggest driver of Customer Satisfaction is First Contact Resolution Training, Knowledge Management, Incentives And the next most critical driver of Customer Satisfaction is Staff Satisfaction Training, Coaching, Career Path, Recogniti on Measure at least 2/year Then Service Levels, e.g. MTTR (desktop)/Resolution time Response times – phone, ASA/Abandon rate Others

16 Customer Satisfaction FCR Staff Satisfaction Service Levels Training Hours Career Path Coaching

17 Cost per Incident Single biggest factor of Cost is Staff Utilization Labor is biggest expense Best measure of labor efficiency is utilization Key factors: Service Levels and Scheduling Efficiency Staff utilization: Time working on incidents/Time worked Caution – 80-90% can lead to high turnover

18 Cost per Incident First Level Resolution Key factor in Total Cost of Ownership Cost per incident at different support levels Self-service $3-8 Level 1 (chat, , phone)$10-17 Level 2 (not deskside visits)$20-30 Level 2 (deskside visits)$50-60 Level 3/Vendor$ Note: Service Desk can have low cost/contact but may drive a high TCO (overall cost/incident) by transfers Caution: FLR over 90-95% can increase overall cost per incident – again, its about balance!

19 Cost per Incident Turnover/Absenteeism Very costly impacts on labor costs Key driver here: Staff Satisfaction High staff satisfaction drives lower turnover and absenteeism, more experience, lower handle times, higher first contact resolution and first level resolution rates, lower MTTR. Training, Coaching, Career Path, Recognition Work Time to handle/resolve incidents Work time, plus travel (deskside support)

20 Cost per Contact/Incident Staff Utilization Staff Satisfaction Service Levels Training Hours Scheduling Efficiency Absenteeism/ Turnover FLRAHT Career Path Coaching Training

21 Not So Much Average Speed to Answer/ Abandonment Rate Almost no impact on Customer Satisfaction (if business reasonable) Can have a great impact on Cost per Contact - adversely Can increase costs without corresponding increase in customer satisfaction Determine goals based on business need Key is consistency There are many other metrics that have relatively little impact on Moneyball Metrics Do have value as part of diagnostic analysis

22 Customer SatisfactionCost per Contact/Incident Staff UtilizationFCR Staff Satisfaction Service Levels Training Hours Scheduling Efficiency Absenteeism/ Turnover FLRAHT Career Path Coaching Summary of Major Correlations Training

23 Scorecard Metric Single overall measure to track and communicate performance Aggregate/Balanced Scorecard Enables management to easily communicate an overall picture of performance to stakeholders(e.g., GD/BD or Red/Yellow/Green) Tracked over time it helps determine if support is improving or declining Avoids focusing and drawing conclusions on less important metrics Beginning of diagnosis

24 Sample Scorecard MetricWeight % Bench Mark Perform ance ResultBalanced Score Cost/Contact25%$30$3586%21.4% Customer Sat.25%90%88%98%24.4% Analyst Utilization 10%85%80%94%9.4% FCR10%70%72%103%10.3% Analyst Sat.20%85%82%96%19.3% First Level Res. (% L1 Capable) 5%85%78%98%4.9% ASA (or MTTR)5%606592%4.6% Total100%94.4%

25 Summary Three major mistakes Tracking/Reporting too many metrics Focusing on the wrong (less important) metrics Not exploiting the full potential of performance metrics as a diagnostic tool Seven Moneyball Metrics Two Prime MMs – Cost and Customer Satisfaction First Contact Resolution Staff Satisfaction – impacts many other key metrics Staff Utilization First Level Resolution (TCO) – overall efficiency Balanced score – overall measure/communications

26 Summary Moneyball Metrics enable you to: Track and trend performance over time Benchmark performance vs. self (and others) Identify strengths and weaknesses Diagnose - and understand the underlying drivers of gaps Prescribe actions to improve performance Establish performance standards/goals for both individuals and overall

27 Summary Cultural Impact Requires management to implement and enforce Use data consistently, hold people accountable, build incentive systems around the new model No more excuses – everyone knows what theyre accountable for; process of commitment Re-examine processes – hiring, training, quality, all can benefit Requires a buy-in process Get people to buy in and use it Be patient for Aha! moments where people understand Be clear that its not big brother. Own their own performance, and can even start teaching each other Transparency – the more you reveal, the greater the impact on acceptance

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