©2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

MetricsMaking a splash with executive metrics dashboards

HP IT Executive Scorecardhttp://www.hp.com/go/xs

Mark BradleyMark.Bradly@hp.comSenior Product Manager – XS & ITFM

Mark E. Bradley, Senior Product Manager September 2013mark.bradley@hp.com

IT enables the Instant-On Enterprise

of capital projects dependon information technology

INNOVATION

70%70%

30%30%

OPERATIONS

AverageBest in Class

50%50%

50%50%

However IT can perform better

2 in 3 projects fail34% not aligned to strategy

Over 80% lack documented requirements2-8 weeks to provision code change

End-users detect 75%+ of production outages10+ hours to restore service

Costly, high profile security attacksExplosion in rich and structured data

Increasing compliance burden

Bringing the Data Together – Design

United Airlines & Metrics Journey

Agenda

Why does Performance Management Matter?

The importance of good Information

© F

ortu

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ine

Does any of this sound familiar?

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“We spend more time gathering data than

analyzing it.”

“By the time the reports are ready they are out of

date.”

“The business is debating the origin of the facts rather than

what the facts tell them.”

“With IT and business systems we have at least two sources of financial truth and three sources

of labor truth”

“Like a duck - calm on the surface but paddling like the dickens underneath.” Michael Caine

Source: Implementing Service & Support Management Processes: A Practical Guide Page: 276 -- By Mark E. Bradley

Expectation/s

IT Services

Performance/$

Request for service

SLA SLA

Highly satisfied

Highly dissatisfied

Consumers

IT Organization

Service Catalog

GoldSilverBronze

Options

Parameters

Levels

OLA UC

The Metrics Challenge

SpreadsheetAt

Starting Gate

Partial Automation

IT Warehouse And Analytics

Where are you?

9

GROUP INPUT: WHERE ARE YOU ON THE ROAD-MAP AND HOW FAST ARE YOU GOING NOW????

10

What is on the Mind of a CIO?Raise the ROI of IT

Execution

Pipeline & Resource

Management

ProjectExecution Operations

& SupportProject/Program Management

IT ValueMeasured by: value generation customer satisfaction employee engagement cost efficiency

Strategic Alignment

ProjectPortfolio

Management

Envisioning

Architecture

IT Value Chain

• Right balance between Cost / Investments and Value Generated

• Leverage information and technology to enable business strategies • Drive operational excellence

Bringing the Data Together – Design

HP Reporting Strategy & Executive Scorecard

Agenda

Why does Performance Management Matter?

Bringing Data Together

• Is there a lot of manual data collection?

• Is the data you need available when you need it?

• Are there issues with complexity or reliability of the data?

Metrics and Key Performance Indicators• A metric is a piece of measurement data such as:

– Number of incidents logged– Response time– Number of full time employees

• A KPI is a specialized form of metric

• KPIs can be used to show organizational goals– Example: Goal – increase customer satisfaction levels – KPIs may rely on multiple metrics: Customer Satisfaction, Incident Escalation, Service Reliability, SLA

• KPIs lead to action! Choosing the right KPIs, using accurate, up-to-date information to base decisions on, and acting on the data will lead to success in enhancing your organizations performance

The SMART side of metrics• First business needs, then processes, then metrics, then tools

• Keep them simple

• Use “as is/to be” & “is/is not” lists

• Metrics should be S-M-A-R-T–Specific–Measurable –Attainable –Repeatable–Time-dependent

14 9/15/2013

To Dashboard or Scorecard, that is the question?

Dashboard Scorecard

Tactical – focused on short-term decision making. Strategic – focused on long-term decision making.

Provides a snapshot of business performance Represents trends/changes in business activity over time.

Operationally focused and supported by individual manage Supported by a clearly defined management strategy

Change in performance are evaluated by decision maker. Changes in performance are measured against business goals.

Dashboard Metrics Scorecard Metrics

Number of outbound calls in progress vs. number of individuals currently on the phones.

Average duration of calls with successful resolution

Number of calls exceeding five minutes in duration Average duration of calls with unsuccessful resolution

Number of dropped calls over the last hour Number of successful vs. unsuccessful resolution calls over a period (monthly/quarterly)

Number of calls resolved vs. number of calls made Number of customer complaints over a given period

Counts & comparisons of most frequent customer complaints

Balanced Scorecard• Scorecards have been around for more than 20 years – what’s changed?

– Customers are trying to build their own system of record for IT

– Balanced scorecard with best practice information for IT• Norton/Kaplan: Learning and Growth, Business Process, Customer, Financial

• HP: Future Orientation, Operational Excellence, Customer, IT Value

– IT Managers want to measure and demonstrate performance improvement – KPIs are a way we can help them do that – they have the source data in their environments today

Dashboard Design Concepts• Know your audience

–What are the real questions we are trying to answer?–What level of information are they truly interested in?

IT FinanceCIO

Lines of Business

IT managers

CFO

VP Applications

VP Operations

How do we get timely insights into emerging problem

areas?

How can I reducethe time and

effort needed to report status?

How do we communicateIT value to the

business?

What is the business impact of

increasing or decreasing IT

spending?

CIOBusinessviewpoint

ITviewpoint

“Increasingly, the Board of Directors are realizing how important IT is to the business and many Board members just don’t know the right questions to ask.” CIO, Fortune 500 company

How do we present multiple IT aspects

in consistentbusiness language?

Know your audience – answering key questions

Dashboard Design Concepts• Flexibility

• Instantly understand information value–Monitor at a glance and quickly identify concerns

• Use the right chart to depict the data–Avoid having to ‘learn to read the chart’

• Answer the high level question first–Don’t force deep analysis to get the answer–Make sure the detailed data is accessible if required

• Consistency

United Airlines Case Study

22Footer goes here

United drives strategic investments, removes silos and redundancy

Driving business transformation

CORPORATE OVERVIEW– Commercial Airline Industry; Revenue: $23.2B US (CY2010);

86,000 Employees and over 1200 planes

CHALLENGES– Rationalizing investments, consolidating assets, and improving on corporate wide business

process in a merger driven industry

GOALS– Build an IT infrastructure to support the enterprise-wide business– Eliminate application sprawl, implement consolidated metrics– Develop and execute on a set of consolidated services that

supports UAL both pre- and post-merger with ContinentalSOLUTION

– HP Business Scorecard, supported by …– Broad range of HP Software Products as the Enterprise

services delivery management platform

RESULTS– Complete picture of assets, strategy and plan for renewal – Reduced time to develop by 52%– Changed time to deploy from 6-8 weeks to a few hours– Changed Strategic/Tactical spend ratio from 1:24 to 4:7 Extensibility, Orchestration, and Analytics

Strategy, Planning, and Governance

Services and Support

Application Lifecycle Management

Information Management

IT Operations Management

Security Intelligence and Risk Management

23

UAL IT transformation journey timeline

2003 2004 2005 2009 20102006 20082007 2011 2012OMC, NMC , Radia (Client Automation)

OM, GlancePPM

SA, OO, SE, SaaS, Professional Services

CMS, Release Manager, BSM (EUM, SLM)Performance Center, Quality Center, Service Management Center

SaaS, Asset Center

Executive Scorecard

Techno-centric

Service-centric

Business-centric

Merger with Continental

IT TRANSFORMATION ERA

The Journey

Use of technology to provide solutions to support ad hoc requirements

IT services aligned to business requirements, based on common infrastructure, framework, workflow and standardized processes

Partnership with business to proactively drive the strategic direction leveraging a mature and flexible infrastructure

24

Our #1 Priority…

Successful merger and integration between

Continental and United

25

First Challenge: Metrics and Performance Reporting

Too Many Dashboards

26

27

Second Challenge: DataGroup Program Leader

EPM/PPM # Request Name Resource Time Period Role

Actual Hours UA/On/Off

Operations Crew and Food Services Jane Beeby 51704 Inflight Records Expansion for Merger ‐ Crew and Food Se Bollampally; Malathi 03/27/11‐04/02/11 Development Lead 14.0           UAOperations Crew and Food Services Jane Beeby 51704 Inflight Records Expansion for Merger ‐ Crew and Food Se Saliby; Ziad 03/27/11‐04/02/11 Project Manager 15.0           UAOperations Crew and Food Services Jane Beeby 51704 Inflight Records Expansion for Merger ‐ Crew and Food Se Ravipaty; Hamsini 03/27/11‐04/02/11 Developer 16.0           UAOperations Crew and Food Services Jane Beeby 51704 Inflight Records Expansion for Merger ‐ Crew and Food Se Sun; Boyuan 03/27/11‐04/02/11 Developer 22.0           UAOperations Crew and Food Services Jane Beeby 51704 Inflight Records Expansion for Merger ‐ Crew and Food Se Zhao Ling 03/27/11‐04/02/11 Developer 24.0           Contractor ‐OnOperations Crew and Food Services Jane Beeby 51704 Inflight Records Expansion for Merger ‐ Crew and Food Se Zhao Ling 04/03/11‐04/09/11 Developer 8.0             Contractor ‐OnOperations Crew and Food Services Jane Beeby 51704 Inflight Records Expansion for Merger ‐ Crew and Food Se Saliby; Ziad 04/03/11‐04/09/11 Project Manager 21.0           UAOperations Crew and Food Services Jane Beeby 51704 Inflight Records Expansion for Merger ‐ Crew and Food Se Skidmore; Linda 04/03/11‐04/09/11 Developer 23.0           Contractor ‐OnOperations Crew and Food Services Jane Beeby 51704 Inflight Records Expansion for Merger ‐ Crew and Food Se Ravipaty; Hamsini 04/03/11‐04/09/11 Developer 24.5           UAOperations Crew and Food Services Jane Beeby 51704 Inflight Records Expansion for Merger ‐ Crew and Food Se Sun; Boyuan 04/03/11‐04/09/11 Developer 36.0           UAOperations Crew and Food Services Jane Beeby 51704 Inflight Records Expansion for Merger ‐ Crew and Food Se Bollampally; Malathi 04/03/11‐04/09/11 Development Lead 37.0           UAOperations Crew and Food Services Jane Beeby 51704 Inflight Records Expansion for Merger ‐ Crew and Food Se Aguirre Fernando 04/10/11‐04/16/11 Project Engineer 7.5             Contractor ‐On

Labor type Resource Type CAP/EXP Plan Variance to Plan Jan‐11 Feb‐11Non Labor Hardware  / Software Capital (3,587,326)                   6,490              

Non Labor Hardware  / Software  Mai Expense (242,795)                      

Non Labor Hardware  / Software Capital 1,100,000     ‐                                

Non Labor Hardware  / Software  Mai Expense 180,000         ‐                                

Non Labor Hardware  / Software Capital ‐                                

Non Labor Hardware  / Software  Mai Expense 16,990           ‐                                

   Hotel Inventory Application Staff Aug AFE‐Non Shr   IAD Baggage Processing Airline AFE‐SHR      52248_11_BPMs for Baggage Screen Processing       Total Cost   PC Applications Staff Aug Support     PC APPS       Total Cost CO‐ETA   ETA Production Support Staff Aug Support     eTA_Hou

SCO  SUA Total

Commercial ‐ Contact Center 3 5 8Commercial ‐ Loyalty 19 16 35Commercial ‐ Sales 9 10 19Common Services, Architecture ‐ DW/BI 4 5 9Corporate ‐ Finance 9 10 19Corporate ‐ HR and Payroll 5 6 11Corporate ‐ Revenue Accounting 3 6 9Infrastructure ‐ Enterprise Systems 12 12 24Infrastructure ‐ Service Mgmt 4 4 8Operations ‐ Airline Operations 5 6 11Operations ‐ Cargo 4 5 9Operations ‐ Crew and Food Services 6 7 13Operations ‐ Maintenance 10 10 20Operations ‐ NOC 8 9 17Operations ‐ SSQE 3 4 7PSS ‐ PSS Migration 41 39 80Revenue ‐ Network 1 2 3Revenue ‐ Revenue Management 2 3 5Executable Plan Programs Totals 148 159 307

Project Counts

EXECUTABLE PLAN PROGRAMS

Too Many Sources of the Truth

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Third Challenge: Culture and Philosophy

Different Business Models

Classification of Key Measures

Available, Responsive, Secure

Key Goal Indicators

Critical Success Factors

Key Performance Indicators

Key Performance Metrics

Strategic

Key Fact Metrics

IT Balanced Scorecard

IT Process health dashboards

Functional & process scorecards

Efficient, Effective, Quality, Progress, Utilization, Compliant

FCR Rate, MTTR, Failed RfC, Calls, Abandon, Cycle Times, MTBI, Cost per Call

RFC, FTEs, CIs, Incidents, Problem, Breaches, MAC, Wait Times, # of Calls, Down Time

Real time tickets – Openview Monitoring Integrations, Hot Tickets

Agile Optimized

Tactical

Impact

Alignment of Key Measures

KGICSF

KPI

KPM

KFM

30 9/15/2013

Key Goal Indicators

Critical Success Factors

Key Performance Indicators

Key Performance Metrics

Strategic

Tactical

Impact

Key Fact Metrics

Exec

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tPr

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s/Se

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“Do the right things, and do things right”Transform ‘Data’ into Business ‘Information’

Harmonize cultural diversity, standardize terminology, consolidate data sources and align the Division against one standard set of performance metrics.

Establish linkage from Top –Down:

• Corporate Dashboard• IT Division Dashboard• CIO Dashboard• VP Dashboard (Operations,

Application Development)• Director Dashboard• Project Manager Dashboard• Individual Performance Objectives

Ability to aggregate and roll up views

Integration Efforts:• 2 Portfolios• 5 Sub-Portfolios • 25 Programs• 600+ Projects

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Integration Project Dashboard:

United Airlines Solution

See Source: United’s presentation at Discover

• Aligned the portfolios to be integrated to the corporate plan• Broke down the integration efforts into several program and program into several projects• Leveraged HP solution to established a single source• Track 320 IT integration projects mapped to 7 portfolio groups • Map the progress to Corporate Go Forward Plan• Report the progress with metrics at various levels – CIO, PMO, Bus• Integrate the integration performance metrics with overall IT performance

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• 7 Integration Portfolio Groups• 25 Programs• 600+ Projects• ~3,000 IT Resources

Wall Walk Project & Portfolio Mgmt. PMO Executive Scorecard

+

Making Dashboards Work for You• Bring data together automatically–not manually

–Actionable data–Flexibility to take data from alternate sources–Free your people to do the job rather than report on how well they did the job

• Identify the right KPIs to meet your organizational goals

• Know your audience and focus–Not enough data may lead to questions of the context and integrity of the data

–Too much data may make the dashboard unusable

Outcomes• Enable strategic decision making and communicate

business value of IT

• Measure, monitor and improve cost efficiency of assets, labor and processes

• Analyze and understand the financial impact of change

• Drive alignment of IT resources with business problems

• Forecast service labor supply and budgetary needs

• Establish business-aligned metrics to quantify the financial value of IT services

• Optimize IT processes and resources—continuous improvement

QUESTIONS?

Data maturity and the value of analytics

2300 years ago, a few data points enabled Eratosthenes to determine the circumference of the Earth to within 2%

Alexandria

Syene

Eratosthenes

You don’t need a lot of data – just the right data

Eratosthenes calculated the circumference of the Earth without leaving Egypt

THANK YOU

HTTP://WWW.HP.COM/GO/XS

Mark Bradley - Senior Product Manager – XS & ITFM

Mark.Bradly@hp.com

HP customer and industry research drives the content

Driven by persona business challenges

Aligning IT objectives to persona business

challenges

Based on industry standards

Key performance indicators and analytics

The HP IT Data Model

Scorecard and

Dashboard views

Screen clipping taken: 3/17/2010, 10:47 AM

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