5 case-studies-collaboration

Desktop/Service Desk CollaborationCase Studies in Successful Partnership

Jeff Rumburg, Managing Partner - MetricNet Session #608

Empirical Observations from the Global Benchmarking Database

More than 3,000 IT Support Benchmarks

Global Database

70+ Key Performance Indicators

More than 120 Industry Best Practices

1© MetricNet, LLC, www.metricnet.com

Then and Now: The Evolution of the Service Desk

Service Desk KPIs

North American Averages1988 Last Year

Monthly Contacts per End-User 0.79 1.95

Cost per Contact $9.57 $21.84

Average Handle Time 6:27 12:55

Resolved on First Contact 35% 67%

Resolved at Level 1 39% 85%

Starting Agent Salaries (current dollars) $27,280 $35,411

Service Desk Cost per End-User per Year $97 $502


Then and Now: The Evolution of Desktop Support

Desktop Support KPIs

North American Averages1988 Last Year

Monthly Desktop Tickets per Seat 0.53 0.78

Cost per Ticket $29 $62

Average IncidentWork Time (min:sec) 17:40 32:15

Incidents Resolved on First Contact 74% 68%

% Resolved Level 1 Capable 54% 22%

Starting Technician Salaries (current dollars) $37,050 $43,627

Desktop Cost per Seat per Year $184 $580


Why Collaborate?

Benefits Barriers


Lower support costs

Greater customer satisfaction

for support

Shorter cycle times on

resolution

Enhanced user productivity


for all of IT

Different managers

Different funding sources

Drive-by’s, fly-by’s, snags

No shared goals or

incentives

Poor training

Weak management / lack of

discipline

Support is low priority

Adopting SPOC Support at an International Freight Co.

The Scenario

Users call desktop support directly

Desktop techs provide on-the-spot assistance

Service desk has no clear dispatch rules for desktop support

Service desk and desktop have no operating level agreement (OLA)

Lost tickets are common

Customers are universally dissatisfied


A Primer on Support TCO

Support Level Cost per Ticket

Vendor

Level 2: Desktop Support

Field Support

Level 3 IT(apps, networking, NOC, etc.)

Level 1: Service Desk

$471

$196

$85

$62

$22


The Tao of SPOC (Single Point of Contact)

User CommunityLevel 1

Service Desk

Desktop Support

Field Support

Level 2 IT Support

Vendor Support


SPOC PrinciplesKey SPOC Principles

Enterprise takes an end-to-end view of user support

User/Customer has a single point of contact for all IT-related issues

The Level 1 Service Desk is the SPOC The service desk and desktop support have

the same SLA with customers The service desk and desktop support have

an OLA Level 1 is responsible for:

Ticket triage Resolution at Level 1 if possible Effective handoffs to n level support Resolution coordination and facilitation Ticket closure

Desktop “Drive-bys”, “Fly-bys”, and “Snags”are strongly discouraged


SPOC Support Reduces Total Cost of Ownership

0%

5%

10%

15%

20%

25%

30%

35%

40%

% R

esol

ved

Leve

l 1 C

apab

le

% Resolved Level 1 Capable with SPOC % Resolved Level 1 Capable without SPOC

Average = 22.8%

Average = 15.3%


The Result of Implementing a SPOC Process

KPI Before SPOC 10 Months LaterLevel 1 Ticket Origination 64% 87%

% Resolved Level 1 Capable 39% 14%Customer Satisfaction 66% 78%

Weighted Average Cost per Ticket $73 $45


Cross Training at a Regional Bank

The Scenario

Support costs are high

Desktop support is sometimes short-staffed

Service desk is sometimes short-staffed

Escalation defects increase when the service desk is busy

Service levels are rarely met

Customer satisfaction is low


Universal Agents Can Greatly Improve Efficiency


12 FTE’s 7 FTE’s

3 – 4Universal

Agents

Service Desk Desktop Support

Success Factors for Cross-Trained Agents


Support personnel are co-located with the users

Users are in a high density environment High rise building or campus setting

Facilitates “jump & go”

Scale is relatively low Fewer than 20 support techs in total between service desk and

desktop support

Not all technicians can or should be cross-trained

The Result of Agent Cross Training


KPI Before Cross Training 6 Months LaterCross-Trained Agents 0 4Customer Satisfaction 72% 85%

Weighted Average Cost per Ticket $67 $55Total Headcount 19 17

% Resolved Level 1 Capable 25% 9%

Shared Incentives at a Multi-National Insurance Company


The Scenario

Both support groups – service desk and desktop

support – appear to be performing well

Costs are in line with industry averages

Customer satisfaction is above industry averages

A SPOC process is followed

So what’s the problem?


Your IT Support Performance

Performance of Benchmarking Peer

Group

Determine How Best in Class

Achieve Superiority

Adopt Selected Practices of

Best in Class

Build a Sustainable Competitive Advantage

The ultimate objective of

benchmarking

COMPARE

50% of Annual Bonus Tied to Benchmarking Results

16

Read MetricNet’s whitepaper on IT Support Benchmarking. Go to www.metricnet.com to download your copy!

Some Common Service Desk Metrics

Cost per Ticket First Level Resolution Rate

Cost

Service Level

Quality

Call HandlingAgent Average speed of answer

(ASA) Call abandonment rate % Answered within 30

Seconds Average hold time Average time to abandon Percent of calls blocked

Contacts per Agent per Month

Agent Utilization Agents as % of Total

FTE’s

Customer Satisfaction Call Quality First Contact Resolution Rate

Agent Occupancy Annual Agent Turnover Daily Absenteeism New Agent Training Hours Annual Agent Training Hours Schedule Adherence Agent Tenure Agent Job Satisfaction

Contact Handle Time % Escalated Level 1

Resolvable User Self-Service

Completion Rate

And there are hundreds more!!

Productivity


A Summary of KPI Correlations for the Service Desk

Cost per Ticket Customer Satisfaction

Agent Utilization

First Contact

Resolution

Agent Satisfaction

Coaching Career Path Training Hours

Call Quality

HandleTime

Agents/Total FTE’s

Absenteeism/Turnover

First Level Resolution

Scheduling Efficiency

Service Levels: ASA and AR


Some Common Desktop Support Metrics

Cost per Ticket Cost per Incident Cost per Service Request

Cost Productivity

Service Level

Quality

Ticket Handling

Technician Average Incident Response Time (min)

% of Incidents Resolved in 24 Hours

Mean Time to Resolve Incidents (hours)

Mean Time to Complete Service Requests (days)

Technician Utilization Tickets per Technician-

Month Incidents per Technician-

Month Service Requests per

Technician-Month Ratio of Technicians to

Total Headcount

Customer Satisfaction First Contact Resolution Rate

(Incidents) % Resolved Level 1 Capable % of Tickets Re-opened

Technician Satisfaction New Technician Training

Hours Annual Technician Training

Hours Annual Technician Turnover Technician Absenteeism Technician Tenure (months) Technician Schedule

Adherence

Average Incident Work Time (min)

Average Service Request Work Time (min)

Average Travel Time per Ticket (min)

And there are hundreds more!!

Workload Tickets per Seat per Month Incidents per Seat per

Month Service Requests per Seat

per Month Incidents as a % of Total

Ticket Volume


A Summary of KPI Correlations for Desktop Support

Cost per Ticket Customer Satisfaction

Technician Utilization

FCR (Incidents)

Technician Satisfaction

Coaching Career Path Training Hours

SL’s MTTR

Work/Travel Time

Techs/Total FTE’s

Absenteeism/Turnover

First Level Resolution

Scheduling Efficiency

Service Levels: MTTR


KPIs for Successful Collaboration

Weighted Average Cost per TicketCost

Quality

Level 1 TCO

Weighted Average Customer Satisfaction

First Level Resolution Rate

Aggregate Balanced scorecard

Desktop TCO % Resolved Level 1 Capable

Read MetricNet’s whitepaper on Help Desk Performance Metrics. Go to www.metricnet.com to get your copy!


The Balanced Scorecard for SPOC Support

Step 1Six critical performance metrics have been selected for the scorecard

Step 2Each metric has been weighted according to its relative importance

Step 3For each performance metric, the highest and lowest performance levels in the benchmark are recorded

Step 4Your actual performance for each metric is recorded in this column

Step 5Your score for each metric is then calculated: (worst case – actual performance) / (worst case –best case) X 100

Step 6Your balanced score for each metric is calculated: metric score X weighting

22

Worst Case Best CaseService Desk Cost per Ticket 20.0% $40.00 $8.00 $22.00 56.3% 11.3%Desktop Support Cost per Ticket 20.0% $120.00 $25.00 $64.00 58.9% 11.8%Service Desk Customer Satisfaction 20.0% 60.0% 100.0% 85.0% 62.5% 12.5%Desktop Support Customer Satisfaction 20.0% 60.0% 100.0% 90.0% 75.0% 15.0%Level 1 Resolution Rate (service desk) 10.0% 40.0% 100.0% 88.0% 80.0% 8.0%% Resolved Level 1 Capable (desktop support) 10.0% 50.0% 0.0% 8.0% 84.0% 8.4%

100.0% N/A N/A N/A N/A 66.9%Total

Performance Metric

Cost

Quality

TCO

Balanced Score

Your Performance

Metric Score

Performance RangeMetric Weighting

© MetricNet, LLC, www.metricnet.com

The Performance Trend in SPOC Support


40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

IT S

uppo

rt B

alan

ced

Scor

e

12 Month Average Monthly Score

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bal

ance

d Sc

ores


Benchmarking the SPOC Balanced Score


High 83.3%Average ----- 51.4%Median 52.3%Low 17.5%Your Performance 66.9%

Balanced Scores

Key Statistics

The Results of Benchmarking and Shared Incentives


Before Benchmarking 1 Year LaterService Desk Cost per Ticket $22 $19Desktop Support Cost per Ticket $64 $62Service Desk Customer Satisfaction 85% 92%Desktop Support Customer Satisfaction 90% 93%Level 1 Resolution Rate (service desk) 88% 91%% Resolved Level 1 Capable (desktop support) 8% 4%

66.9% 75.5%42.3% 63.8%% of Bonus Awarded

Balanced Score

Key Performance Indicator

Cost

Quality

TCO

Closed Ticket Analysis at a Fortune 100 Telecom Company


The Scenario

Monthly meetings are held between service desk and desktop support to review tickets

Goal is to ensure proper categorization of tickets, and eliminate tickets through Root Cause Analysis

Benchmarks show that First Level Resolution on the service desk is low

And nearly half the tickets resolved by desktop support are resolvable at level 1

0

2

4

6

8

10

12

0% 2% 4% 6% 8% 10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

32%

34%

36%

38%

40%

% Resolved Level 1 Capable

Num

ber o

f Sup

port

Org

aniz

atio

ns

Firs

t Qua

rtile

= 1

2.7%

Four

th Q

uarti

le =

24.

3%

Med

ian

= 18

.1%

Industry Data for Desktop % Resolved Level 1 Capable



Industry Data for Level 1 Resolution

0

5

10

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20

25

30

35

40

45

50

55

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%

Net First Level Resolution Rate

Num

ber o

f Dat

a P

oint

s

Average ------ 73.9%Max 98.9%Min 24.0%

Median 75.0%> 95% Net FLR 2.0%

Industry Average Net FLR Statistics

Net First Level Resolution Rate

Num

ber o

f Dat

a R

ecor

ds

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

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80.0%

90.0%

100.0%

Net

Firs

t Lev

el R

esol

utio

n

Remote Diagnostic Software No Remote Diagnostic Software

The Effect of Remote Diagnostic Software on FLR

Average = 77.8% FLR

Average = 61.4% FLR


The Effect of a Mature Knowledge Base on FLR


0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

0 1 2 3 4 5 6

KBase Maturity

Net

Firs

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The Action Plan


Adopt a remote diagnostic tool

Add a check box to desktop support tickets Resolved but Level 1 Capable

Establish a goal for First Level Resolution

Establish a goal for % Resolved Level 1 Capable

Enforce a strict SPOC support model

The Results: 6 months Later


KPI Before Action Plan 6 Months LaterFirst Level Resolution 61% 83%

% Resolved Level 1 Capable 44% 17%Weighted Average Cost per Ticket $96 $61

Some Final Thoughts

The Paradox of IT Support

Less than 5% of all IT spending is allocated to end-user support Service desk, desktop support,

field support

This leads many to erroneously assume that there is little upside opportunity in IT support

The result is that most support organizations are managed with the goal of minimizing costs

But the most effective support strategies focus on maximizing value


Corporate IT Spending Breakdown

4%

96%: Non support functions

End-User Support

Application Development

Application Maintenance

Network Operations

Mainframe and midrange Computing

Desktop Computing

Contract Services (e.g., disaster recovery)

84%

47%

31% 29%22%

19%

8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Service Desk DesktopSupport

NetworkOutages

VPN Training EnterpriseApplications

DesktopSoftware

Factors Contributing to IT Customer Satisfaction

% S

ayin

g Ve

ry Im

port

ant

n = 1,044 Global large cap companies Survey type: multiple choice 3 responses allowed per survey

84% cited the service desk as a very important factor in their overall satisfaction with corporate IT 47% cited desktop support as a very important factor in their overall satisfaction with corporate IT

Support Drives Customer Satisfaction for All of IT


0

10

20

30

40

50

60

70

0 1 2 3 4 5

Prod

uctiv

e H

ours

Los

t per

Em

ploy

ee p

er Y

ear

Quality of Support Drives End-User Productivity

1 (top) 2 3 4 (bottom)Customer Satisfaction 93.5% 84.5% 76.1% 69.3%

First Contact Resolution Rate 90.1% 83.0% 72.7% 66.4%Mean Time to Resolve (hours) 0.8 1.2 3.6 5.0

Customer Satisfaction 94.4% 89.2% 79.0% 71.7%First Contact Resolution Rate 89.3% 85.6% 80.9% 74.5%Mean Time to Resolve (hours) 2.9 4.8 9.4 12.3

Service Desk

Desktop Support

Performance QuartileSupport Function Key Performance Indicator

37.4 46.9Average Productive Hours Lost per Employee per Year 17.1 25.9

Performance Quartile n = 60


Support Level Cost per Ticket

Vendor

Level 2: Desktop Support

Field Support

Level 3 IT(apps, networking, NOC, etc.)

Level 1: Service Desk

$471

$196

$85

$62

$22


Support Has an Opportunity to Minimize TCO

Why Collaborate?

Benefits Barriers


Lower support costs


for support

Shorter cycle times on

resolution

Enhanced user productivity


for all of IT

Different managers

Different funding sources

Drive-by’s, fly-by’s, snags

No shared goals or

incentives

Poor training

Weak management / lack of

discipline

Support is low priority

About MetricNet:Your Benchmarking Partner

Jeff Rumburg is a co-founder and Managing Partner at MetricNet, LLC. Jeff is responsible for global strategy, product development, and financial operations for the company. As a leading expert inbenchmarking and re-engineering, Mr. Rumburg authored a best selling book on benchmarking, and has been retained as a benchmarking expert by such well-known companies as American Express, Hewlett-Packard, and GM. Prior to co-founding MetricNet, Mr. Rumburg was president and founder of The Verity Group, an international management consulting firm specializing in IT benchmarking. While at Verity, Mr. Rumburg launched a number of syndicated benchmarking services that provided low cost benchmarks to more than 1,000 corporations worldwide.

Mr. Rumburg has also held a number of executive positions at META Group, and Gartner, Inc. As a vice president at Gartner, Mr. Rumburg led a project team that reengineered Gartner's global benchmarking product suite. And as vice president at META Group, Mr. Rumburg's career was focused on business and product development for IT benchmarking. Mr. Rumburg's education includes an M.B.A. from the Harvard Business School, an M.S. magna cum laude in Operations Research from Stanford University, and a B.S. magna cum laude in Mechanical Engineering. He is author of A Hands-On Guide to Competitive Benchmarking: The Path to Continuous Quality and Productivity Improvement, and has taught graduate-level engineering and business courses. Mr. Rumburg serves on the Strategic Advisory Board for HDI, formerly the Help Desk Institute.

Your Presenter: Jeff Rumburg



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