free service desk training series | how to measure and ensure positive roi in your service desk |...

How to Measure and Ensure

Positive ROI !

1

22 Years of Service Desk Benchmarking Data

More than 1,600 Service Desk Benchmarks

Global Database

30 Key Performance Indicators

Nearly 80 Industry Best Practices

© MetricNet, LLC, www.metricnet.com

2 © MetricNet, LLC, www.metricnet.com

Then and Now: 22 Years of Benchmarking Metrics

Key Performance

Indicator

North American Averages

1988 2010

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

(2010 dollars) $27,280 $35,411

Service Desk Cost per

End-User per Year $97 $502

10 Mega Trends in End-User Support

The rise of the Strategic Service Desk

Holistic use of KPI’s

Benchmarking to Improve Performance

User Self-Help

Marketing the Service Desk

Understanding TCO

First Contact and First Level Resolution

Process Rationalization (ITIL, ITSM)

Knowledge Management and Remote Diagnosis

The Widespread Adoption of ROI Analysis


A SPOC Service Desk is Highly Leveraged

User Community Level 1:

Service Desk

Level 2:

Desktop

Support

Field

Support

Level 3:

IT Support

Vendor

Support


Total Cost of Ownership: North American Averages

Support Level Cost per Incident

Vendor

Level 2: Desktop Support

Field Support

Level 3 IT

(apps, networking, NOC, etc.)

Level 1: Service Desk

$471

$196

$85

$62

$22


84%

47%

31% 29%22%

8%

0%

20%

40%

60%

80%

100%

Help Desk Desktop

Support

Network

Outages

Quality of

Desktop

Tools

(Hardware

and Software)

Quality of

Enterprise

Applications

IT Training

% S

ayin

g V

ery I

mp

orta

nt


End-User Support: The Key to Driving End-User Satisfaction

84% of end-users cite the Service Desk as a primary factor

in shaping their opinions of corporate IT

ROI for End-User Support

Our central question today…

How Do We Ensure Positive ROI for End-User Support ?


ROI Defined


ROI = Return

Investment =

Savings

Spending

ROI is a simple ratio

It requires quantification of Return (Savings), and Investment (Spending)

It is measured over a one-year timeframe (One Year ROI is implied in the

metric)

It is one of the most widely used and accepted financial metrics

It can be used prospectively, as part of a Business Case Analysis

…Or retrospectively to evaluate the success of past investments

ROI: Two Simple Examples

Example Investment One Year Return First Year ROI

Bank CD $10,000 $300 3%

Service Desk Training $10,000 $20,000 200%

Service Desk Training: A 200% Return

Company XYZ hires an outside training firm in an effort to reduce

handle times, and improve First Contact Resolution rates

Following the training, handle times drop from 10 minutes to 9

minutes, and Cost per Contact drops from $20 to $19

The $1 savings in Cost per Contact, when multiplied by 20,000

contacts per year, yields a one year savings of $20,000

The end result is an ROI of 200% in year 1


Three Components of the ROI Question

Is our Service Desk

“profitable”?

Is Desktop Support

“profitable”

What is the overall

ROI for End-user

Support in our

organization?

Does End-user

support make a

positive economic

contribution?

Organizational

ROI

Investment

ROI

What incremental

investments in End-

User Support make

economic sense?

Technology

investments

Process investments

(e.g. ITIL)

Investments in

Training

Investing in Human

Resources

Insourcing and

Outsourcing


Operational

ROI

How efficient is the

Service Desk?

How efficient is Desktop

Support

Is it possible to reduce

costs in end-user

support?

What steps can be

undertaken to minimize

costs for end-user

support?

Organizational ROI: Are You “Profitable”?

Is our Service Desk

“profitable”?

Is Desktop Support

“profitable”

What is the overall

ROI for End-user

Support in our

organization?

Does End-user

support make a

positive economic

contribution?

Organizational

ROI

Investment

ROI

What incremental

investments in End-

User Support make

economic sense?

Technology

investments

Process investments

(e.g. ITIL)

Investments in

Training

Investing in Human

Resources

Insourcing and

Outsourcing


Operational

ROI


Service Desk?


Support


costs in end-user

support?

What steps can be


costs for end-user

support?


Case Study #1: Organizational ROI

Example: Organizational ROI

2,600 end users generating 5,000 contacts per month, or 60,000

contacts per year

Service desk saves each end user an average of 1 hour 10 minutes per

contact (industry average based upon surveys)

That’s the equivalent of 5,833 productive hours saved per month…

Or 33.7 FTE’s per year: More than 1% of payroll!

What’s the Service Desk ROI?

This Service Desk has 15 FTE’s, and spends $1,250,000 per year

The labor cost savings generated by the Service Desk is about $2.7

million per year (33.7 FTE’s X $80,000 average salary and benefits)

The Service Desk ROI is therefore 215% ($2.7mm/$1.25mm)

Operational ROI: Are You Optimized?

Is your Service

Desk “profitable”?

Is Desktop Support

“profitable”

What is the overall

ROI for End-user

Support in our

organization?

Does End-user

support make a

positive economic

contribution?

Organizational

ROI

Investment

ROI

What incremental

investments in End-

User Support make

economic sense?

Technology

investments

Process investments

(e.g. ITIL)

Investments in

Training

Investing in Human

Resources

Insourcing and

Outsourcing


Operational

ROI


Service Desk?


Support


costs in end-user

support?

What steps can be


costs for end-user

support?

How do we optimize the

Cost/Quality tradeoff in

End-User Support?


Case Study #2:

Operational ROI

14

Your Service Desk or Desktop 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

The Benchmarking Methodology

Read MetricNet’s whitepaper on Help Desk Benchmarking. Go to www.metricnet.com to receive your copy!


http://www.metricnet.com/

Cost/Contact Higher Lower

Higher AFTER BENCHMARKING

STARTING POINT: BEFORE

BENCHMARKING

BEST-IN-CLASS

PERFORMANCE CURVE

AVERAGE PERFORMANCE CURVE

The Goal of Benchmarking



Benchmarking Performance Summary

Read MetricNet’s whitepaper on Benchmarking Peer Group Selection. Go to www.metricnet.com to get your copy!

Min Median Average MaxCost/Contact $28.17 $6.59 $22.56 $22.96 $38.44

Cost/Minute of Handle Time $2.66 $1.22 $2.00 $1.96 $2.95

Contacts/Agent-Month 429 373 487 504 699

Agent Utilization 46.7% 25.9% 53.9% 53.1% 71.1%

Average Speed of Answer (ASA) in seconds 18 12 34 45 187

Percent Answered in 30 Seconds or Less 86.6% 36.5% 71.3% 72.1% 100.0%

Call Abandonment Rate 2.9% 1.4% 7.6% 8.1% 25.2%

Call Quality 68.4% 43.8% 75.8% 79.9% 94.5%

Customer Satisfaction 63.0% 41.9% 75.5% 79.0% 96.6%

Annual Agent Turnover 29.5% 1.7% 26.4% 31.7% 94.0%

Daily Absenteeism 19.2% 0.1% 13.0% 13.2% 29.8%

New Agent Training Hours 36 20 69 79 241

Ongoing Agent Annual Training Hours 12 0 20 34 130

Agent Satisfaction (% satisfied or very satisfied) 71.0% 33.8% 70.1% 75.4% 94.5%

Agents as a Percent of Total FTE's 77.9% 57.1% 69.3% 70.5% 88.4%

Contact Handle Time (min:sec) 12:41 2:47 9:34 11:18 19:55

First Contct Resolution Rate 51.3% 45.4% 67.8% 71.2% 94.1%

IVR Completion Rate 6.7% 0.0% 18.9% 22.0% 44.8%

Metric

Type Key Performance Indicator (KPI)

Your

Score

Peer Group

Agent

Call Handling

Cost

Productivity

Service Level

Quality

Sample Data Only! Not Intended for Benchmarking Purposes!


The Foundation Metrics: Cost and Quality

Cost/Contact

(Efficiency)

Customer Satisfaction

(Effectiveness)


19

Aggregate Metrics: Cost vs. Quality

Lower Cost Cost (Efficiency)

Qu

ality

(E

ffecti

ven

ess

)

Top Quartile

Efficient and Effective

Lower Quartile

Middle Quartiles

Effective but not Efficient

Middle Quartiles

Efficient but not Effective

Your Service Desk

Peer Group

Higher Cost

Lower

Quality

Higher

Quality


Agent Utilization and First Contact Resolution Rate

Cost/Contact Customer Satisfaction

Agent

Utilization

First Contact

Resolution


Agent Utilization Drives Cost per Contact

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

20% 30% 40% 50% 60% 70% 80%

Agent Utilization

Co

st

per

Co

nta

ct


First Contact Resolution Drives Customer Satisfaction

20%

40%

60%

80%

100%

20% 40% 60% 80% 100%

First Contact Resolution

Cu

sto

mer

Sati

sfa

cti

on


Service Levels: ASA and Abandonment Rate


Agent

Utilization

First

Contact

Resolution

Training Hours Scheduling

Efficiency

Service Levels:

ASA and AR


ASA Drives Cost per Contact

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

0 50 100 150 200 250

Average Speed of Answer (sec)

Co

st

per

Co

nta

ct


Call Abandonment Rate Also Drives Cost per Contact

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Call Abandonment Rate

Co

st

pe

r C

on

tac

t


ASA vs. Customer Satisfaction

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

0 5% 10% 15% 20%

ASA as a % of Total Handle Time

Cu

sto

me

r S

ati

sfa

cti

on


Call Abandonment Rate vs. Customer Sat

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Call Abandonment Rate

Cu

sto

mer

Sati

sfa

cti

on


Training Hours Impact First Contact Resolution Rate


Agent

Utilization

First

Contact

Resolution

Training Hours Scheduling

Efficiency

Service Levels:

ASA and AR


New Agent Training Hours vs. First Contact Resolution

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 50 100 150 200 250 300 350

New Agent Training Hours

Fir

st

Co

nta

ct

Res

olu

tio

n R

ate


Veteran Agent Training vs. First Contact Resolution

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 20 40 60 80 100 120 140

Veteran Agent Training Hours

Fir

st

Co

nta

ct

Res

olu

tio

n R

ate


Agent Satisfaction


Agent

Utilization

First

Contact

Resolution

Agent

Satisfaction

Training Hours

Absenteeism/

Turnover

Scheduling

Efficiency

Service Levels:

ASA and AR


Agent Satisfaction Impacts Customer Satisfaction

20%

30%

40%

50%

60%

70%

80%

90%

100%

50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%

Agent Satisfaction

Cu

sto

me

r S

ati

sfa

cti

on


Agent Satisfaction Drives Agent Turnover

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100%

Agent Satisfaction

An

nu

al

Tu

rno

ve

r


Cause and Effect of Primary KPI’s


Agent

Utilization

First

Contact

Resolution

Agent

Satisfaction

Training Hours

Absenteeism/

Turnover

Scheduling

Efficiency

Service Levels:

ASA and AR


Training Hours Drive Agent Satisfaction

40%

50%

60%

70%

80%

90%

100%

0 20 40 60 80 100 120 140

Veteran Agent Training Hours

Ag

en

t S

ati

sfa

cti

on



Benchmarking Performance Summary

Read MetricNet’s whitepaper on Benchmarking Peer Group Selection. Go to www.metricnet.com to get your copy!

Min Median Average MaxCost/Contact $28.17 $6.59 $22.56 $22.96 $38.44

Cost/Minute of Handle Time $2.66 $1.22 $2.00 $1.96 $2.95

Contacts/Agent-Month 429 373 487 504 699

Agent Utilization 46.7% 25.9% 53.9% 53.1% 71.1%

Average Speed of Answer (ASA) in seconds 18 12 34 45 187

Percent Answered in 30 Seconds or Less 86.6% 36.5% 71.3% 72.1% 100.0%

Call Abandonment Rate 2.9% 1.4% 7.6% 8.1% 25.2%

Call Quality 68.4% 43.8% 75.8% 79.9% 94.5%

Customer Satisfaction 63.0% 41.9% 75.5% 79.0% 96.6%

Annual Agent Turnover 29.5% 1.7% 26.4% 31.7% 94.0%

Daily Absenteeism 19.2% 0.1% 13.0% 13.2% 29.8%

New Agent Training Hours 36 20 69 79 241

Ongoing Agent Annual Training Hours 12 0 20 34 130

Agent Satisfaction (% satisfied or very satisfied) 71.0% 33.8% 70.1% 75.4% 94.5%

Agents as a Percent of Total FTE's 77.9% 57.1% 69.3% 70.5% 88.4%

Contact Handle Time (min:sec) 12:41 2:47 9:34 11:18 19:55

First Contct Resolution Rate 51.3% 45.4% 67.8% 71.2% 94.1%

IVR Completion Rate 6.7% 0.0% 18.9% 22.0% 44.8%

Metric

Type Key Performance Indicator (KPI)

Your

Score

Peer Group

Agent

Call Handling

Cost

Productivity

Service Level

Quality

Sample Data Only! Not Intended for Benchmarking Purposes!


A Summary of the Operational KPI Correlations


Agent

Utilization

First

Contact

Resolution

Agent

Satisfaction

Coaching Career Path Training Hours

Call

Quality

Handle

Time

Agents/

Total FTE’s

Absenteeism/

Turnover

First Level

Resolution Scheduling

Efficiency

Service Levels:

ASA and AR


Investment ROI: Does the Investment Make Sense?

Is our Service Desk

“profitable”?

Is Desktop Support

“profitable”

What is the overall

ROI for End-user

Support in our

organization?

Does End-user

support make a

positive economic

contribution?

Organizational

ROI

Investment

ROI

What incremental

investments in End-

User Support make

economic sense?

Technology

investments

Process investments

(e.g. ITIL)

Investments in

Training

Investing in Human

Resources

Insourcing and

Outsourcing


Operational

ROI


Service Desk?


Support


costs in end-user

support?

What steps can be


costs for end-user

support?


ROI: The Heart of Every Business Case

A Business Case is a proposed investment, and an

economic evaluation of that investment

It is based on quantifiable projections of investment (spending)

and return (cost savings)

Return on Investment is a central component of every

Business Case

Other Business Case metrics may include Time to Breakeven (or

payback period), and Cost/Benefit Ratio


Case Study #3: Investment ROI

Example: Knowledge Management System

Vendor claims that the K-base will cost $65,000 to install and populate,

and $20,000 a year to maintain

Vendor claims that improvements in First Level and First Contact

resolution rates, plus lower handle times will pay for the investment in

the first three months

What Actually Happened?

The K-base installation and customization was $240,000, and the

annual maintenance costs are now about $110,000

FCR and FLR did improve, and handle times did decline

Was the investment worthwhile?


Case Study #3: Investment ROI (contd.)

Handle Time Savings

The AHT was reduced from 15 minutes to 12 minutes

When multiplied by 60,000 contacts per year, that’s a savings of 3,000 labor

hours on the Service Desk per year

The Service Desk was able to reduce staff by 3 FTE’s as a result, saving a total

of $195,000 per year

What’s the ROI?

The K-base was depreciated over six years at a rate of $40,000 per year

Annual costs for the K-base are therefore $150,000 ($40,000 for depreciation +

$110,000 in annual maintenance costs)

The ROI is therefore 130% ($195,000 Return/$150,000 Annual Investment)

The Bottom Line on ROI

Progressive support organizations are increasingly turning to ROI to demonstrate

their economic contribution to the organization, and justify investments

Organizational ROI: The Service Desk itself must have a positive ROI

Using the benchmarks suggested in this presentation, organizational ROI should be in the

range of 200% or more

Operational ROI: Improvements in Operational Efficiency have a positive ROI

Benchmarking can identify and prioritize these opportunities

Investment ROI: Every investment should have a positive ROI

An ROI Hurdle Rate of at least 100% is suggested

Given the dynamic nature of End-User Support, every investment should pay for itself in less

than one year

Successful ROI Analysis requires two things

1. Accurately Quantifying costs and benefits

2. Accurately Projecting future costs and benefits

Most investments are scale sensitive

An investment that has a positive ROI for a 50 seat Service Desk may not be viable for a

10 seat Service Desk

This is particularly true for technology investments


10 Mega Trends in End-User Support

The rise of the Strategic Service Desk

Holistic use of KPI’s

Benchmarking to Improve Performance

User Self-Help

Marketing the Service Desk

Understanding TCO

First Contact and First Level Resolution

Process Rationalization (ITIL, ITSM)

Knowledge Management and Remote Diagnosis

The Widespread Adoption of ROI Analysis


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 in

benchmarking 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 currently serves on the Strategic Advisory Board for HDI, the Help Desk Institute.

Your Speaker: Jeff Rumburg



Benchmarking is MetricNet’s Core Business

Call Centers

Telecom

Information

Technology

Satisfaction

Technical Support

Customer Service

Telemarketing/Telesales

Collections

Customer Support

Desktop Support

Field Support

Price Benchmarking

Customer Satisfaction

Employee Satisfaction

22 Years of Service Desk Benchmarking Data

More than 1,600 Service Desk Benchmarks

Global Database

30 Key Performance Indicators

Nearly 80 Industry Best Practices


Meet a Sampling of Our Clients

MetricNet Conducts benchmarking for Service Desks worldwide, and

across virtually every industry sector.

© MetricNet, LLC, www.metricnet.com 48

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http://www.cemex.com/index.asp

Upcoming MetricNet Webcasts

Register at www.metricnet.com

April 12, 2011

Unleashing the Enormous Power of Service

Desk KPI’s!

May 10, 2011

Call Center Best Practices!

June 7, 2011

Best Practices in Desktop Support!

July 12, 2011

Best Practices for IT Service Desks!

August 9, 2011

Customer Satisfaction Measurement Programs that Work!

September 13, 2011

Unleashing the Enormous Power of Call Center KPI’s!

October 11, 2011

Unleashing the Enormous Power of Service Desk KPI’s!

November 8, 2011

Call Center Best Practices!

For more information on Industry Best Practices, please register for MetricNet’s FREE upcoming webcasts

49


You Can Reach MetricNet…

By Phone…

703-992-7559

On Our Website…

www.metricnet.com

Or E-mail us…

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free service desk training series | how to measure and ensure positive roi in your service desk |...

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