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METRICSA TOP DOWN, BALANCED
SCORECARD APPROACH FOR THE SUPPORT CENTER
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How important are metrics to the support industry?
• Strategic Advisory Board-whitepaper• Most frequent questions received by HDI member
services center• First chapter in the book “Implementing Service and
Support Management Processes: A Practical Guide”• Popular topic for the HDI Executive Forum• SPIN content delivered by Ron Muns—largest
attendance so far• Newest member deliverable—Metrics Series
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So, what is a “metric”???
A metric is a measure of anything.
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KPI (Key Performance Indicator):
A Key Performance Indicator is a metric—however, a metric is not always a KPI.
A KPI is a measurement that matters and is ideally actionable.
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Dashboard:
A tool used by managers and executives to monitor business performance
A dashboard is the critical delivery vehicle for performance metrics.
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Balanced Scorecard (BSC):
Provides a clear view as to what organizations should measure in order to “balance” the financial perspective with the service perspective.
The BSC is a management system.
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A company may have many metrics but few KPI’s.
How do we get to our short list of agreed upon key measures?
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First you must ask,
“What do we value?”
• Customers or Employees?
• Cost Control or Organizational Development?
• Service reputation or profitability?
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I’ve learned that you can’t have everything and do everything at the same time.
Oprah Winfrey
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BSC model recognizes business complexities
• Multiple priorities often conflict
• Avoid single metric focus (i.e. cost/call)
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The Process
• First, all participants need a clear and consistent understanding of the organization’s overall high level strategies and culture.
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Assembling a qualified team is a necessary requisite. The team should consist of not only IT management but also their business counterparts.
If the CEO/COO is not directly involved, they should at least sign off on the finished scorecard.
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• Second, everyone on the team should know, “What is this business trying to accomplish?” What are the company’s goals and objectives for the short and long term?
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• Third, determine the key business drivers
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• Fourth, determine what measures will tell you how well the organization is doing. What are the key performance indicators?
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• Finally, look at existing systems that will enable you to calculate and report your KPI’s.
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KPI’s should offer a good mix of financial as well as operational measures.
A BSC looks beyond financial measures.
Financial measures generally look at the past (how the organization performed historically). Non financial measures frequently offer a good indicator of the future.
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The goal of the Balanced Scorecard Service Model for the Support
Center is to balance service goals and financial goals.
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Customer Satisfaction Goals• Supporting KPI’s • •
Employee Satisfaction Goals• Supporting KPI’s• •
Costs/Productivity Goals• Supporting KPI’s• •
Organizational Maturity Goals• Supporting KPI’s• •
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The key to a successful Support Center Balanced Scorecard Service Model is to maintain continued balanced improvement in all four quadrants over time.
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Customer Satisfaction Goals• Generally measured via customer
surveys• Primary survey is transaction based• Secondary survey is a loyalty survey• Overall customer satisfaction is one of
the primary drivers in contract renewal rates for externally facing Support Centers.
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Examples of Customer Satisfaction KPI’s:
• Accuracy/Timeliness/Courtesy/Skills
• Overall satisfaction
• Average speed to answer
• Abandon call %
• Self-service tool utilization %
• SLA performance
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Employee Satisfaction Goals• In any service business, the people who deliver that
service are the essential product• Average time to fully train a new employee in
customer support ranges from a few months to a year or more
• Some turnover can be healthy... excessive turnover can have a significant negative impact on operations
• Employee surveys should be conducted once or twice a year.
• Companies that effectively manage employee satisfaction do not always have the highest pay scales for their industry or area.
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Examples of Employee Satisfaction KPI’s
• Turnover
• Sick days
• Employee satisfaction scores
• Training days per year
• Time to proficiency
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Costs/Productivity Goals• Our industry must agree on definitions and
methods for developing cost metrics• Valuable comparisons depend upon common
definitions, common volumes, common costs and common methodologies
• Financial KPI’s are dependent on calculating costs in terms of cost per unit of work and per service delivered
• Must be analyzed in conjunction with service goals
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Examples of Costs/Productivity KPI’s:
• Costs per incident (by channel)
• Customers per Support FTE (full time employee)
• Incidents handled per Support FTE
• Utilization rate
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Organizational Maturity Goals• Most strategic and subjective of the four quadrants• Focused on the structure, ability to change,
quickness, responsiveness, and strategic positioning of support within the larger organization
• Enables customer and employee satisfaction with optimal cost structure
• All world class organizations are constantly challenging themselves to find ways to continuously improve their operational efficiency
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Examples of Organizational Maturity KPI’s:
• Executive support
• Time to product proficiency
• Workforce diversity
• Problem elimination value
• Process formalization
• Certifications and standards efforts
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Implementation of a BSC Service Model• Review the listing of KPI’s for each of the
quadrants—Keep goals and strategies in mind• Remember that success will depend on
maintaining a documented model and tracking progress over time
• Keep it simple• Analysis is the valuable part• Intent should be to take action if action is
warranted
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SUMMARY• Goals need to be agreed to by not only the Support
Center but also the COO, CEO and/or CFO• Objective is to have continuous, balanced
improvement in all quadrants• KPI’s are tools and not objectives• Reporting should go both up and down the chain of
command • The process can be applied to operations ranging from
a simple internal IT Support Center to a larger multi-customer Support Center organization
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HDI Update
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MEMBERSHIP• Expanded SupportWorld circulation• Vertical market emphasis
– Surveys– Forums– Web presence
• Practices survey is available• SAB – new format for deliverables• LC Officer Summit was last week
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EVENTS• ITIM 2005
– October in Orlando– Produced solely by HDI – Refocused content
• Emerging Technologies• IT Leadership• Network Optimization and Performance• Infrastructure Management Technology Innovation• Security, Governance and Compliance• IT Service Management
• HDI 2006– March 19 – 22 in Nashville
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TRAINING• New and improved curriculum for HDA
Bootcamp (to include CSS)• New “Team Lead” course• Standards committee are set – over 40
volunteers• Exploring potential new courses including
some ITIL based courses• New LMS for online course management
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New Initiatives• Customer Satisfaction Survey Project
• Web Enhancements– Navigation– Presentation of Content– Call for volunteers