1. Office of Technology Services Effective Executive Reporting and Key Performance Indicators Link Alander, Associate Vice Chancellor, Technology Services Shah Ardalan, Vice Chancellor Technology Services, CIO Every organization faces significant challenges in an economic downturn. Reducing IT costs is usually one of the first considerations. However, it is critically important to review the organization’s KPIs to prevent long- term and infrastructure damages with short-term financial gains. The key to this is demonstrating IT value over IT expense.

2. Lone Star College System - Office of Technology Services  Introduction  Lone Star College System  Office of Technology Services  Challenges  Key Performance Indicators  Internal and External  Measuring  Rethinking what we measure  Executive Reporting  Don’t forget your customers  Is Service Delivery Slipping?  Keys to Our Success  Planning, Measuring and Reporting  Questions and Answers Presentation Overview Problem Statement How many are of you are facing budget cuts? As an institution As a department How many of you have a hiring freeze right now? Official Unofficial Does your organization feel that IT is draining resources and not providing value to the organization? Are you a business partner?

3. Lone Star College System - Office of Technology Services Lone Star College System 75,000+ students 5-8 % avg. growth per year (15% in 2009) 5 Colleges LSC-CyFair LSC-Kingwood LSC-North Harris LSC-Montgomery LSC-Tomball LSC-University Center LSC-University Park 9 Educational Outreach Centers 5,000 Employees Expanding our facilities 21 new buildings LSC-University Park

4. Lone Star College System - Office of Technology Services Restructured May of 2008 6 entities into 1 140 staff members Supported Systems 12,000+ desktop systems 4,800+ network devices 475+ file servers 30 Major Technology Initiatives Office of Technology Services IT Governance Formal Governance Structure Strategic Plan for IT Guiding Principles Customer Satisfaction 5-Nines Service Delivery Enterprise Standards Key Performance Indicators Financial Operational Strategic Open Executive Reporting

5. Lone Star College System - Office of Technology Services Times are Tough! Early Trends in Technology Budgets for 2009-10 The impact on IT spending of the unprecedented deterioration in global economic conditions is becoming clearer. In our 1Q09 forecast update, Gartner's most likely forecast for global IT spending in 2009 has been revised down to -3.8% annual growth in U.S. dollar terms. April, 2009 Budget Trends – Higher Education Planning cuts of 5 to 15 percent for FY09-10 Many are administering mid year cuts Sentiment was budget cuts would be deep and long lasting January, 2009

6. Lone Star College System - Office of Technology Services Challenge Prior to 2008 – IT was not seen as a business partner Goal Increase Accountability, IT Maturity, Show Value and become a Business Partner Monitor and Track Performance It doesn’t have to be complex Assign tracking responsibility Report Progress Meaningful Information to our Executives and Board of Trustees Provide Continuous Improvement Our Approach and Challenges At what point do you add value to the organization? IT Maturity Model and Assessment

7. Lone Star College System - Office of Technology Services  Don’t over estimate your capabilities  Align with your Strategic Plan  Traditional KPIs  Financial  Operational  Strategic  External and Internal - KPIs  Assign Responsibility  Report Regularly  Rethink (remix) your KPIs  Show Value to the Organization and our Taxpayers Key Performance Indicators “If you don’t measure it, you can’t manage it” “If you don’t measure it, you can’t improve it” “If you don’t measure it, you probably don’t care” “If you can’t influence it, then don’t measure it” -Randy A Steinberg Once an organization has analyzed its mission, identified all its stakeholders, and defined its goals, it needs a way to measure progress toward those goals. Key Performance Indicators are those measurements.

8. Lone Star College System - Office of Technology Services Why external and internal KPIs  Aligned with Goals  Simplified and targeted  Strategic in nature  Manage expectations Document your KPIs  What are you measuring?  Why are you measuring?  How are you measuring? External KPIs - Traditional

9. Lone Star College System - Office of Technology Services IT Service Management – Measuring Availability Critical Factors – Documented Practices Measuring Service Availability Measuring Service Impact Recorded system service availability is: Location X = 44,370/(44,640-240) = 99.90% Impact = 55,000-3,000/55,000 = 5.45% System availability = Total availability by Site Weighted. Example: 30 minute network outage at a remote campus that impact 3,000 students, faculty and staff. All other locations were not impacted. Total Service Uptime (Total Minutes – Planned Downtime) (Total Service Users – Impacted Users) Total Service Users Any impact greater then 10% is considered a total loss of service.

10. Lone Star College System - Office of Technology Services Change Management  Change success rate  Emergency change rate  Change efficiency rate  Change incident rate  Change reschedule rate Measuring Change and Problem Management Problem Management - Number of major problems - Number of repeat incidents - Total labor hours spent on problems

11. Lone Star College System - Office of Technology Services Benefits of Internal KPIs  Measure More!  Higher Standards  Establishes who is accountable Same Principles Apply  Define the KPI  Goals  Reporting Internal KPIs

12. Lone Star College System - Office of Technology Services What are Risk Performance Indicators?  Patch Management  Antivirus definitions  Backup system performance Why measure Risk Performance Indicators?  To make sure they are being watched Should I report these?  Yes  To senior IT leadership  To process owners responsible Rethinking (REMIX) your KPIs Relative KPI’s  Patch management compliance %  Antivirus compliance %  Backup system performance  Backup system tests  External Security Assessments

13. Lone Star College System - Office of Technology Services Measure Technology Initiatives that add value  Long term vs. short term projects  Establish KPIs (project and future) from the start  Examples  Green IT  Implement and measure a green standard for all IT systems  Goal – Reduce energy consumption by 50 % within 3 years  Risk Reduction using Automation  Implement desktop management systems to improve customer satisfaction, patch and security management  Administrative Cost Reduction  Review organizational and cost structures shift expenses to operational support when possible Rethinking (REMIX) your KPIs Relative KPI’s  % of systems with Entergy Star 5 Rating  % of systems with advanced power management  % reduction of energy costs  Desktops  Datacenter  % of call resolutions resolved with automation  % of administrative costs by fiscal year or quarter

14. Lone Star College System - Office of Technology Services Is Service Delivery Slipping?  Traditional – Customer Satisfaction Survey’s  Work order completion surveys  Call center metrics Watch the Bottom Line!

15. Lone Star College System - Office of Technology Services Is Service Delivery Slipping?  Non Traditional (Perception)  Semiannual survey – faculty and students  Open forums  Small target group sessions  Technology advisory councils Watch the Bottom Line! Continuing economic hardships require many IT operations organizations to assess their core competencies and the costs of service delivery. May, 2009

16. Lone Star College System - Office of Technology Services While KPIs add value to your operation they don’t add value to the organization unless you regularly report them.  Monthly Executive Overview Report  Keep it simple (Geek-less meaningful communication)  Report KPIs  Highlight items that have value  Customer Newsletter  Open forums  Faculty and Staff updates  Tips and tricks  Ways to reduce calls by expanding knowledge  Student Welcome Back Event  Event and newsletter for students Reporting

17. Lone Star College System - Office of Technology Services 1)Planning  IT Governance  Alignment with Institutions Strategic Plan  Technology Plan – Strategic and Tactical  Communication & Branding Plans 2) Measuring  External and Internal KPIs  Monitoring Service Delivery and Customer Satisfaction  Monitoring Perception of Technology Services 3)Reporting  Executive Reporting  Customer Newsletters (Students, Faculty and Staff)  Technology Advisory Councils Keys to our Success Constant Communication with “ALL” Stakeholders Constant Communication with “ALL” Stakeholders

18. Lone Star College System - Office of Technology Services By implementing simple KPIs, remixing KPIs to show value and constant reporting. The LSCS Office of Technology Services has not faced the significant challenges that other Higher Education IT organizations are facing. Rewards We are Hiring! This fiscal year we are adding 20 new positions New Resources  5.7 million was allocated system-wide for special project funding  OTS received 2.9 million

19. Office of Technology Services Questions? Presentation Resources Gartner Reports G00154802 G00165225 G00159978 EduCause ECAR – Managing the Funding Gap Measuring ITIL - Randy A Steinberg Effective Executive Reporting and Key Performance Indicators Link Alander, Associate Vice Chancellor, Technology Services Shah Ardalan, Vice Chancellor Technology Services, CIO