Presentation on theme: "MONEYBALL FOR IT SUPPORT"— Presentation transcript:
1MONEYBALL FOR IT SUPPORT Using Data-Driven Management to AchieveWorld-Class Support.DFW Chapter of HDIMarch 15, 2012Terry 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, authorWhich statistics are most correlated to winning gamesFocus on these success metrics and actually use them for recruiting, player development, and game-time decisions.Full management commitmentThis approach has come to the fore-front of best practices in driving business execution.Since the book, and especially the movie, many companies and industries are asking “how can this apply to us”?For example, recent article in Business Week – “Tracking the wrong metrics can be expressed and lead to the wrong results.”HR company, customer service group, etc.
3IT Support CentersA strong environment for data-driven management (analytics)Rich in under-used data and under-tracked processesThere are efficiency and quality gains to be captured by uncovering and leveraging the value in existing systems and stores of dataYou can’t manage what you don’t measureFocus on desktop support as well as service deskLack of measures and management is particularly true of desktop support.When it comes to end-user support, most often think of Level 1 help desk. Extensively studied – best practices are well documented and understood. In 2011 Practices Surveys, 91% of SDs measure and track metrics, while less than 50% of desktop organizations do!
4IT Support CentersPerformance Management in the Support Center – Service Desk and Desktop SupportA set of practices and tools used to systematically measure, improve, and manage the operationA means of defining and delivering metrics to every employee and stakeholderA process for aligning goals and objectives across all levels of the organizationThe means for management and individuals to diagnose and take action based on full informationWhy not?But not all measures are equally importantToo often favor metrics that are easiest to get or those “everyone uses”And don’t forget: “You get what you measure”You can’t manage what you don’t measure – have heard this for quite a while. But despite this few support centers really use KPI’s to their full potential – especially desktop support teams.But what to measure?Efficiency and quality gainsEarly detection of problems and trendsContinual process improvementWhy Not? – key data may be difficult to access, organize, and put in contextDon’t want to “fight the good fight”
5Metrics 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 timeAverage response time*Resolution times by category/classification – Mean time to resolve*Percent of tickets reopened*Cost per contact/incident*First level resolutionStaff turnoverStaff absenteeismStaff 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 changePercent resolved Level 1*Average queue time per ticket*Ratio of staff per customer….. and many more……….Included in HDI Practices Surveys – Service Desk and Desktop! Common to track over metrics!
7Moneyball 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?Recent Business Week article stated that: “Tracking the wrong metrics can be expensive and lead to the wrong result.”And need to take action Most are marginally relevant, at best.What are the primary measures for baseball? - Profit, and Winning World Series, total games won? Butts in seat…..Define and clarify goalsMeasure performanceImprove results
8Moneyball Metrics Key to the value of Moneyball Metrics True potential = not just measure, but also:Track and trend performance over timeBenchmark performance vs. self (and peers)Identify strengths and weaknessesDiagnose - understand the interrelationships and underlying drivers of performancePrescribe actions to improve performanceEstablish performance goals for both individuals and support team overallBecome “World-Class”All metrics are worthless – unless you do something with them.Very hard to focus on “actionable data” if you look at too much.True potential of metrics, only if you: (see list)Benchmark – get a baseline to see progress and continual improvement
9What is “World-Class”? “Ranking among the foremost in the world” “First-rate”, “Exceptional”, “Superlative”…Exceed “Industry standards?”We often hear and use the term “World class”.I would contend that these are the only two things that really matter!This may not apply to baseball. Yankees are considered “world class” – but certainly not based on wins per dollar spent. Highest payroll in baseball by far. not about just having the “best performance metrics in the industry” – despite the cost! That’s not world class in my opinion. Doing the best you can with the budget available. This gives a smaller support center a chance to be “world class”. May not be able to have the highest First call resolution or response times, but can do a good job on a low budget.……..as you make decisions and try different actions, ask how do I improve performance AND lower cost.
10World-ClassGoal 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/benchmarkingDUH – hence Moneyball Metrics and Performance Management.Discuss this more: againSo what are the Moneyball Metrics?I will suggest 7 specific metrics for service desk and 8 for desktop support. These are based on my years of experience working with dozens of companies and on industry research.However, let me say at this point, that the key metrics that I will submit and discuss may not be exactly the ones for your organization – I think they are, but you need to identify for yourself through careful benchmarking and calibration what is best for you.
11World-Class Two primary measures of success – Prime Factors: Effectiveness and Efficiency, orQuality vs. Cost
12Moneyball MetricsBest indicator of effectiveness/quality = Customer SatisfactionBest indicator of efficiency = Cost per Contact/Incident (fully burdened) – measure of Total Cost of OwnershipPrime Moneyball Metrics – perhaps the only two that really matterWorld Class:Consistently exceed customer expectationsCosts are managed at or below industry average levelsSo what are the key influencers of these prime factors?I realize that there are many issues around how to define specific metrics, how to measure them, and how to compare with others. Will not have time to get in depth on these issues. Could spend a good day or two. Food for other presentations.
13Customer Satisfaction Single biggest driver of Customer Satisfaction is First Contact ResolutionTraining, Knowledge Management, IncentivesSo if there is problem with customer satisfaction – look first to First Contact Resolution. Not that others do not have an impact, but much less and not always a plus factor!Just ask yourself what you want most when you ask for help – a solution in a reasonable amount of time. Depends upon the complexity of the issue.
14Customer Satisfaction Single biggest driver of Customer Satisfaction is First Contact ResolutionTraining, Knowledge Management, IncentivesAnd the next most critical driver of Customer Satisfaction is Staff SatisfactionMeasure at least 2/yearTraining, Coaching, Career Path, Recognition
15Customer Satisfaction Single biggest driver of Customer Satisfaction is First Contact ResolutionTraining, Knowledge Management, IncentivesAnd the next most critical driver of Customer Satisfaction is Staff SatisfactionTraining, Coaching, Career Path, RecognitionMeasure at least 2/yearThen Service Levels, e.g.MTTR (desktop)/Resolution timeResponse times – phone,ASA/Abandon rateOthers
17Cost per Incident Single biggest factor of Cost is Staff Utilization Labor is biggest expenseBest measure of labor efficiency is utilizationKey factors: Service Levels and Scheduling EfficiencyStaff utilization:Time working on incidents/Time workedCaution – 80-90% can lead to high turnoverBut have to be careful – too high utilization will lead to low Analyst Satisfaction and turnover - and low service levels
18Cost per Incident First Level Resolution Key factor in Total Cost of OwnershipCost per incident at different support levelsSelf-service $3-8Level 1 (chat, , phone) $10-17Level 2 (not deskside visits) $20-30Level 2 (deskside visits) $50-60Level 3/Vendor $Note: Service Desk can have low cost/contact but may drive a high TCO (overall cost/incident) by transfersCaution: FLR over 90-95% can increase overall cost per incident – again, it’s about balance!Again training, coaching, etc can help FLR.
19Cost per Incident Turnover/Absenteeism Very costly impacts on labor costsKey driver here: Staff SatisfactionHigh 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, RecognitionWork Time to handle/resolve incidentsWork time, plus travel (deskside support)
21Not 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 - adverselyCan increase costs without corresponding increase in customer satisfactionDetermine goals based on business needKey is consistencyThere are many other metrics that have relatively little impact on Moneyball MetricsDo have value as part of diagnostic analysis
22Summary of Major Correlations Customer SatisfactionCost per Contact/IncidentFCRStaff UtilizationService LevelsAbsenteeism/ TurnoverFLRAHTService LevelsTrainingStaff SatisfactionCareer PathScheduling EfficiencyTraining HoursCoaching
23Scorecard MetricSingle overall measure to track and communicate performanceAggregate/Balanced ScorecardEnables 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 decliningAvoids focusing and drawing conclusions on less important metricsBeginning of diagnosis
24Sample Scorecard Metric Weight % Bench Mark Performance Result BalancedScoreCost/Contact25%$30$3586%21.4%Customer Sat.90%88%98%24.4%Analyst Utilization10%85%80%94%9.4%FCR70%72%103%10.3%Analyst Sat.20%82%96%19.3%First Level Res.(% L1 Capable)5%78%4.9%ASA (or MTTR)606592%4.6%Total100%94.4%
25Summary Three major mistakes Seven Moneyball Metrics Tracking/Reporting too many metricsFocusing on the wrong (less important) metricsNot exploiting the full potential of performance metrics as a diagnostic toolSeven Moneyball MetricsTwo Prime MM’s – Cost and Customer SatisfactionFirst Contact ResolutionStaff Satisfaction – impacts many other key metricsStaff UtilizationFirst Level Resolution (TCO) – overall efficiencyBalanced score – overall measure/communications
26Summary Moneyball Metrics enable you to: Track and trend performance over timeBenchmark performance vs. self (and others)Identify strengths and weaknessesDiagnose - and understand the underlying drivers of gapsPrescribe actions to improve performanceEstablish performance standards/goals for both individuals and overall
27Summary Cultural Impact Requires management to implement and enforce Use data consistently, hold people accountable, build incentive systems around the new modelNo more excuses – everyone knows what they’re accountable for; process of commitmentRe-examine processes – hiring, training, quality, all can benefitRequires a buy-in processGet people to buy in and use itBe patient for “Aha!” moments where people understandBe clear that it’s not “big brother”. Own their own performance, and can even start teaching each otherTransparency – the more you reveal, the greater the impact on acceptance