SESSION 608 Tuesday, November 3, 2:45pm - 3:45pm Track: Service Support and Operations Measuring Operational Efficiency and Value Rae Ann Bruno President, Business Solutions Training Inc. rbruno@businesssolutionstraining.com Session Description The goal of operations is to run efficiently, provide consistent, high-quality services, and continually improve the customer experience. Although we have plenty of data to use for trending, improving services, and promoting value, it difficult to deliver the right mix of metrics. This session presents a holistic method for effectively measuring and improving efficiency and quality, and attendees will walk away with sample reports and templates to use in their own organizations. (Experience Level: Intermediate) Speaker Background Rae Ann Bruno, president of Business Solutions Training Inc., provides consulting and training services in various areas of ITIL, KCS, communications, internal marketing, metrics, and process improvement. Rae Ann holds several ITIL certifications, is a member of the HDI Faculty and the HDI International Standards Committee, and is the author of the HDI focus books Translating IT Metrics into Business Benefits and What Have You Done for Me Lately?: Creating an Internal Marketing Culture.
Session 608 Measuring Operational Efficiency and Value Rae Ann Bruno rbruno@businesssolutionstraining.com Today s Objectives Show the difference between efficiency metrics and effectiveness (business value) metrics. Display questions that the business wants to have answered (about IT). Provide ideas for taking a business perspective approach to developing reports. Identify steps to develop reports and scorecards that show business value. Share report and scorecard examples.
Common Operational Reports Service Availability Call volume First Contact Resolution Top 10 incidents Top 10 requests Mean time to repair Project status Resource Management Workforce Management Show Business Value Are you able to: Site specific business tasks that your team facilitates completing? Quantify the amount of time your team has helped the business save? Measure productivity gains facilitated by your team? Show cost savings or an increase in profits or customer retention? Work with business partners to identify the metrics or information that quantifies each of these.
What the Business is Asking Senior Management Does IT support the achievement of business objectives? What value does the expenditure on IT deliver? Are IT costs being managed effectively? Are risks being identified and managed? Are targeted inter-company IT strategies being achieved?
What the Business is Asking Business Unit Executives Are IT services delivered at a competitive cost? Does IT deliver on its service level commitments? Do IT investments positively impact business productivity or the customer experience? Does IT contribute to the achievement of our business strategies? What IT is Asking Are we growing professional competencies needed for successful service delivery? Are we creating a positive workplace environment? Do we effectively measure and reward individual and team performance? Do we capture organizational knowledge to continuously improve performance? Can we attract and retain the talent needed to support the business?
Building Reports that Answer Questions and Show Value Building Valuable Reports The Working Council for Chief Information Officers found that the most advanced scorecards shared these structural attributes 1. Simplicity of presentation 2. Explicit links to IT Strategy 3. Broad executive commitment 4. Enterprise-standard metrics defined 5. Drill-down capability and available context 6. Individual manager compensation linked
Questions Reverse the Normal Approach Start with the Questions. What do you your stakeholders want to know? What critical services do you provide and how does it impact business? Ask! Understand what information is needed. Review What reports do you have today that answer the questions? Which reports/metrics measure efficiency? effectiveness? Improvement? Results? What metrics can you use to tell the story or answer the questions? Answer What can we answer today? What do we need to change? How are we performing? Where do we excel? What can we improve? What are we showing the business? I.T.? Our team? Select dependable metrics High level steps Distill process-based indicators Include Project Outcome measures Incorporate Service Level agreements Represent new functions Assign metric ownership
Efficiency Quality Value Network speed First contact resolution (FCR) IT hours spent on projects Time to resolution Accuracy On time, on budget Transactions per second Defect removal Correct routing Automation Appropriate prioritization Maximum duration of outage Number of Core system outages Reliability Mea time to repair Baseline System Performance Monitoring Incident Monitoring Knowledge Monitoring Quality Index Core System Availability Coaching Alignment with goals Proper sense of urgency Customer Service Skills SLA/OLA compliance Service Review meetings and improvement plans Customer Satisfaction Saved time Productivity Business impact Correlation to business needs WIIFM (What s in it for me?) Accuracy Trending Top types Priority Cost Per contact To business Efficiency Eliminate redundant efforts, unnecessary steps, and streamline efforts Measure consistently and regularly Include, assess, and improve within: Design and Development Processes (RACI, execution of steps) Training Continual Improvement Efforts Meetings Post Mortems Issues
Efficiency Network speed First contact resolution (FCR) IT hours spent on projects Time to resolution Accuracy On time, on budget Transactions per second Problem Elimination Three Focus Areas Correct routing Automation Appropriate prioritization Maximum duration of outage Number of Core system outages Quality Baseline System Performance Monitoring Incident Monitoring Knowledge Monitoring Quality Index Core System Availability Coaching Alignment with goals Proper sense of urgency Customer Service Skills SLA/OLA compliance Service Review meetings and improvement plans
Quality MUST make the time to assess quality! Putting processes in place is not enough. Essential for cultural and behavior changes. Is defined by and measured by customer very visible! Quality Metrics assess: Consistency How well we are doing Maturity of process Quality of skills/team members The customer experience Job Rotations Training Lessons learned The Customer Voice What do you expect when? How can we make your job easier? How do our services currently save you time? Where could we help you to gain time? What is efficient/inefficient? What business results are needed in your division? If we could change one thing that would have a large impact on, what would it be?
Value Customer Satisfaction Saved time Productivity Business impact Correlation to business needs Business results WIIFM (What s in it for me?) Accuracy Mean time to Value Trending Top types Priority Cost Per contact To business Sample Reports
Building the IT Balanced Scorecard Building the IT Scorecard Business Balanced Scorecard IT Balanced Scorecard IT Development Balanced Scorecards IT Operations Balanced Scorecards
Seven Deadly Sins of the I.T. Scorecard 1. An IT-centric view of IT performance 2. Measures that don t matter 3. Lack of standard metrics definitions 4. Over-reliance on tools 5. Lack of drill-down capability hindering interpretation 6. Too many metrics 7. No individual impact Source: Working Council for Chief Information Officers Balanced Scorecard Ties performance measurements to strategy For each quadrant, show: Objectives Metrics Targets Initiatives Review past performance and trends, and establish optimal forecasting Financial How do we look to our shareholders? Customer How do customers see us? Vision & Strategy Internal Business Process What must we excel at? Learning and Growth Can we continue to improve and create value? Source: HDI SCM Course 6-16/17
Customer Orientation Scorecard Metrics Objective Customer Satisfaction Development services performed Operational services performed Measures Business Unit survey ratings Service quality and responsiveness Contribution to business objectives Major project success scores Goal attainment Sponsor satisfaction Service level compliance Mean time to restore service during major incidents Source: Taylor & Francis Group Operational Excellence Scorecard Metrics Objective Operational process performance Process maturity Architecture Management Source: Taylor & Francis Group Measures Productivity Responsiveness Change management effectiveness Incident occurrence levels Assessed level of maturity Delivery and support Monitoring State of the infrastructure assessment Product acquisition compliance with technology standards Increased reliability as result of architecture changes
CRM Scorecard Metrics Objective Customer Process Staff Retention percent Win-back percent Customer acquisitions Customer satisfaction Measures Conversion rate per sales channel Cost of sales per sales channel Service level per channel Cost per service encounter Employee satisfaction Employee retention Source: Taylor & Francis Group 120 Combined Support Scorecard 100 80 60 40 Cases Closed/week Articles Linked/week Articles Created/week Articles Modified/week Citations/week Average Handle Time % FCR 20 Source: HDI KCS Course 0 1 2 3 4 5 6
Customer Satisfaction Business Value Quantify Answers Overall satisfaction of IT Services Projects delivered within budget Projects delivered on time or sooner Results achieved from new or changed service Operational Excellence Mean time to restore services Success of user training % of Security incidents Incidents related to releases Reliability of services Security incidents prevented Service quality and responsiveness Active projects linked to business initiatives Cost or time savings realized Active projects with approved funding/business cases Projects delivering expected business results/benefits Innovation/Future Growth New technology capabilities introduced Automation of routine requests/business processes Increased number of new ideas Revenue or results from new products or services Summary Continually solicit the voice of the customer Grow your team s business knowledge and skills on an ongoing basis Create a collaborative culture Build relationships with the business and become business innovators Balance quality and efficiency metrics Learn the value of your services to the business and quantify that value
Summary Create a unified I.T. department Place full emphasis on the customer experience It s about business, not technology (service) Define and redefine regularly Transparency is necessary to improve You can t manage what you don t measure Thank you for attending this session. Please don t forget to complete an evaluation form!
Contact Info Email: rbruno@businesssolutionstraining.com @raeannbruno www.linkedin.com/pub/rae-ann-bruno/0/395/99b