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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 [email protected]
“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
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 can’t manage what you don’t measure
Focus on desktop support as well as service desk
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 don’t forget: “You get what you measure”
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 email 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……….
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?
Moneyball Metrics
Key to the value of Moneyball MetricsTrue 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.
What is “World-Class”?
“Ranking among the foremost in the world”
“First-rate”, “Exceptional”, “Superlative”…
Exceed “Industry standards?”
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
World-Class
Two primary measures of success – Prime Factors:
Effectiveness and Efficiency, or
Quality vs. Cost
Moneyball MetricsBest 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?
Customer Satisfaction
Single biggest driver of Customer Satisfaction is First Contact Resolution◦Training, Knowledge Management,
Incentives
Customer Satisfaction
Single biggest driver of Customer Satisfaction is First Contact Resolution◦Training, Knowledge Management,
IncentivesAnd the next most critical driver of
Customer Satisfaction is Staff Satisfaction◦Measure at least 2/year◦Training, Coaching, Career Path,
Recognition
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, Recognition◦Measure at least 2/year
Then Service Levels, e.g.◦ MTTR (desktop)/Resolution time◦ Response times – phone, email◦ ASA/Abandon rate◦ Others
Customer Satisfaction
FCR
Staff Satisfaction
Service Levels
Training Hours Career Path
Coaching
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
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, email, phone) $10-17 Level 2 (not deskside visits) $20-30 Level 2 (deskside visits) $50-60 Level 3/Vendor $100-300
◦ 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, it’s about balance!
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)
Cost per Contact/Incident
Staff Utilization
Staff Satisfaction
Service Levels
Training Hours Scheduling Efficiency
Absenteeism/ Turnover
FLR AHT
Career Path
Coaching
Training
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
Customer Satisfaction
Cost per Contact/Incident
Staff Utilization
FCR
Staff Satisfaction
Service Levels
Service Levels
Training Hours Scheduling Efficiency
Absenteeism/ Turnover
FLR AHT
Career Path
Coaching
Summary of Major Correlations
Training
Scorecard 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 declining
Avoids focusing and drawing conclusions on less important metrics
Beginning of diagnosis
Sample Scorecard
Metric Weight
%
Bench Mark
Performance
Result Balanced
Score
Cost/Contact 25% $30 $35 86% 21.4%
Customer Sat.
25% 90% 88% 98% 24.4%
Analyst Utilization
10% 85% 80% 94% 9.4%
FCR 10% 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% 60 65 92% 4.6%
Total 100% 94.4%
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 toolSeven Moneyball Metrics
◦ Two Prime MM’s – 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
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
SummaryCultural 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 they’re
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 it’s 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