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Measuring Quality, Cost, and Value of IT Services

Christopher S. Peebles, Craig A. Stewart,

Brian D. Voss, and Sue B. Workman

Office of the Vice President for Information Technology

& University Information Technology Services

Indiana UniversityPresented at EDUCAUSE 2001, Indianapolis, IN

Monday, October 29, 2001

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License Terms

• Please cite as: Peebles, C.S., C.A. Stewart, B.D. Voss, and S.B. Workman. 2001. Measuring Quality, Cost, and Value of IT Services. Presentation. Presented at EDUCAUSE 2001, Indianapolis, IN. Monday, October 29, 2001. Available from: http://hdl.handle.net/2022/13896

• This content is released under the Creative Commons Attribution 3.0 Unported license (http://creativecommons.org/licenses/by/3.0/). This license includes the following terms: You are free to share – to copy, distribute and transmit the work and to remix – to adapt the work under the following conditions: attribution – you must attribute the work in the manner specified by the author or licensor (but not in any way that suggests that they endorse you or your use of the work). For any reuse or distribution, you must make clear to others the license terms of this work.

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IU in a nutshell

• Founded in 1820• $2B Annual Budget• 8 campuses• >90,000 students• 3,900 faculty• 878 degree programs; >1,000

majors; > 60 programs ranked within top 20 of their type nationally

• University highly regarded as research and teaching institution

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IT@IU in a nutshell

• Academic programs in IT through computer science, library and information sciences, engineering and technology, and most notably through new School of Informatics

• CIO: Vice President Michael A. McRobbie• ~$70M annual budget• Technology services offered university-wide• UITS comprises ~500 FTE staff, organized into

crosscutting units (e.g. finance and HR) and four technology divisions (Teaching & Learning Information Technology,Telecommunications, University Information Systems, Research and Academic Computing)

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Value

• IT and Value Creation

– It’s all about time: powers of automation and augmentation

• IT and Value Destruction

– It’s all about time: wasted time due to poor operating systems, poorly crafted applications, and mysterious, opaque user interfaces

• IT and Value Protection

– It’s all about time: time spent in support and education

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Measures of Performance and Success

• Do not have measures like EVA and “profit” as a measure for the success of university IT organizations

• Must draw exemplars from business and benchmarks from wherever they are available

• Organization performance: IBM “Adaptive Organization” and “Customer Relationship Management”

• Measurement: “The Balanced Scorecard” and “ Counting What Counts”

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Performance Measures for All Organizations, Including University IT Organizations

• Robert Kaplan and David Norton. The Balanced Scorecard. HBS Press, Boston, MA, 1996.

• Four dimensions of retrospective and prospective measures– Financial perspective: deployment (and growth) of revenue, ABC against

internal (historical) and external benchmarks– Customer perspective: customer satisfaction measures, number of

partnerships with faculty in teaching and research, support of university business processes, support of library processes

– Internal perspective: process measures, classic IT measures of availability, cost-of-poor-quality, speed and depth of development cycles

– Learning perspective: employee satisfaction, employee development (MSCE, CCNE, etc.), personal alignment of employee goals with position

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Measuring Quality and Cost

Customer Surveys

Activity Based Costing

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Importance of Quality

• Claiming that quality is important is easy. Doing something useful is hard.

• Measurement of quality requires– Leadership initiative– Understanding your services– Commitment to two-way, fact based communication with

customers• Motivations at IU

– Initiative– Feeling of responsibility– Responsibility center management

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User Satisfaction Survey

• Created out of leadership desire for quality and accountability, and desire for fact-based response to assaults on IT center’s budget

• Key features of Survey– Administered by independent survey organization– Stratified random sampling; survey center finalizes and

administers survey, performs randomization, tabulates responses, ensures anonymity

– This assures credibility and quality of data– Longitudinal comparisons assured by consistency of

questions from year to year

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User Satisfaction Survey details

• Undergraduate students, graduate students, staff, and faculty sampled. N has varied; current 1000 undergrad, 500 each remaining category per campus

• Likert scale, Y/N questions, demographic information, opportunity for comments at end

• Data reported as average score (+ 95%CI), satisfaction percentage (percent scoring 3-5), percentage who use a service.

• All results, including every text comment ever written [identifying references deleted] available on the Web at http://www.indiana.edu/~uitssur

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Some key results: Overall Satisfaction

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Overall quality maintained by attention to individual services

Satisfaction with Stat/Math Center

Satisfaction with Stat/Math Center

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User demographics: ownership

User demographics: ownership

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User demographics: time spent using computer per week

User demographics: time spent using computer per week

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Survey Credibility and Utility, 1

• Response rates:– IUB survey response rates in 1991 ranged from 23%

(undergraduates) to 50% (faculty). – IUB response rates in 2000 ranged from 41%

(undergraduates) to 71% (staff)– IUPUI survey initiated in 1997 with a 26% response

rate for undergraduates– IUPUI response rate for 2000 at 36% (undergraduates)

to 48% (staff)• High response rate due to small incentive ($5-$10 value)

and to recognition of value of survey

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Survey Credibility and Utility

• External– Results disseminated rapidly and widely. Survey

conducted Feb-end of April; results on Web in July or August

– Results, and actions taken as a result, publicized widely throughout the year

• Internal– Key component of annual internal quality

assessment/plan– Often used in internal proposals as justification

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Activity based Costing

• “There are no results inside an organization. There are only costs.” – Peter F Drucker, Managing the Nonprofit

Organization: Principles and Practices. Harper Collins, NY, 1990. p. 120

• Activity Based Costing-Activity Based Management– John Shank and Vijay Govindarajan. Strategic Cost

Management. Free Press, NY, 1993– Robert Kaplan and Robin Cooper. Cost and Effect.

HBS Press, Boston, MA, 1998

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Activity Based Costs and Management

ABCosts Organization Products

Wages and Benefits

Training

PeopleHardware and Software (Expense or Depriciation)

QualityMaintenance and Other MeasuresContracts

Processes SERVICEExpendable Supplies

Unit Costs

Circuit Charges

Data Knowledge Video Voice

Organization Sustaining Activities

Other Costs

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UITS Services — Bloomington Campus1998-1999 Fiscal Year

Report on Cost and Quality of Services

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ABC data

• Full reporting of data on Web at http://www.indiana.edu/~uits/business/scindex.html

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A Case Study of Activity Based Management

Reengineering E-Mail at Indiana University Bloomington

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Cost and Quality: an E-mail example

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Volume and Cost for e-mail services at Indiana University Bloomington,

1996 - 1998 Academic Years.

1996-97 1997-98 1998-99

Number of MailAccounts

66,000 48,000 46,000

Number ofMessages

307,000,000 270,000,000 179,000,000

Mb Received 1,258,000 NA 391,825,000

Cost/Message $0.001 $0.002 $0.002

Cost/Account/Year

$8.96 $9.80 $6.11

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User perceived quality measures for five mail systems used at Indiana University Bloomington,

1996-1998 Academic Years

1996-1997 1997-98 1998-1999

PercentageSatisfied

SatisfactionScore

PercentageSatisfied

SatisfactionScore

PercentageSatisfied

SatisfactionScore

Pine 95.1% 4.1 90.5% 3.9 85.8% 3.7

UnixMail(Elm)

82.1% 3.5 82.2% 3.5 62.2% 3.0

Eudora 96.5% 4.2 87.8% 4.1 92.3% 4.1

GroupWise

89.0% 3.8 78.4% 3.8 76.9% 3.5

Exchange 96.3% 4.2 85.0% 3.8 92.5% 4.2

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Comparative measures for e-mail support requests in Indianapolis and Bloomington during the

academic year 1998-1999.

1998-99

TotalNumberof Users

Number ofCalls toSupportCenter

Call perUser

Percentageof e-mailCalls toSupportCenter

Percentageof TotalCalls toSupportCenter

Pine IU-B 44,000 1,537 1 per 28.6 23.8% 2.4%

OutlookExchangeIUB

4,500 1,773 1 per 2.5 27.4% 2.7%

Pine IUPUI 45,000 1,943 1 per 22.7 22.7% 4.2%

OutlookExchangeIUPUI

6,000 2,425 1 per 2.5 28.2% 5.3%

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So what to do about email?

• Wait until a better solution presented itself

• The better solution: Webmail

• Early results extremely favorable…

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Balanced Scorecard: example from Research & Academic Computing

• Service measures (for all, current levels and from last year)– Quality – from user survey– Utilization – from user survey– Cost

• Staff– Turnover– % receiving some sort of external certification

• Results– Number and $s of grants applied for or supported– Number and $s received (not less than $1M in last 3 years)– Publications

• Enabled by our services• By IT organization staff

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Quality Planning

• Internal quality plan written by each management unit, focusing on assessment and plans for improvement

• User survey and ABC data key indicators

• Any service with a satisfaction rating of less then 90% is generally taken to be cause for action

• IT center budget office, which has customers only within the IT center, does its own annual survey!

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IT Support@IU

Support in Breadth

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IT Support at Indiana University

• IT has invaded our lives and culture

• Demands for IT support increased exponentially

• Budgets remained steady (at best)

• How do we deliver a quality product under such conditions?

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Some background

• Support free, unlimited to 115,000 IU Faculty, Staff, Students.

• End-user, general-purpose support provided by central computing organization (UITS)– Support Center– Knowledge Base– Student Technology Center Consultants– Residential IT Support– Education Program

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Support Center

• Provide support to 400,000 contacts/year

• Campus-based centers

• Variety of questions/platforms

• Various support delivery methods

– Call Center

– Walk-in Center

– Online

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Call Center

• Calls distributed to ACD routed queues

– Computers/Applications w/ Windows OS

– Computers/Applications w/ Macintosh OS

– Computers/Applications w/ Unix OS

– Mission Critical Systems

– General IT questions

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Walk-In Center

• Campus-centric locations

• Support requiring personal authentication

• Computer configuration

• General-purposes support of convenience

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Online Support

• Support via e-mail

• Knowledge Base

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Managing the quantity of contact

• Proactive versus reactive support

• Tools to reduce time of contact

• Increase quality of answers

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Measuring the Quality of Contact

• Annual Department Survey

• Daily Support Center Survey

– Simple measures

– Non-intrusive to customer

– Indicator of quality of service

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The 3 Key Indicators

1.       Did the customer receive a solution

2.       in a timely manner

3. and delivered courtesy and respect ?

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What do we do with the info?

• Send to 45 users from day before• Every response is read and every “no” receives a response.• Used as indicator of need for training or resource allocation• Positive feedback

Date: Mon, 15 Jan 2001 11:15:49 -0500 (EST)From: kdyn <kdyn@indiana.edu>To: <scpc@indiana.edu>Subject: Re: Dell Optiplex GX1..MS Natural Keyboard

(#269.1445) THANKS, Jim. Please forward my message on to your boss –this is the BEST service I've ever gotten on ANY computer-related problem anywhere. I'm glad my technology fee is paying your salary. THANKS.

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Managing the Resources

• Utilize technology for what it does best

• Utilize humans for what we do best

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Knowledge Base Background

• KB was born in 1988• Internal tool to retain computing support information• Became a self-serve tool in 1995• For more info see: “What is the history of the Knowledge

Base” at http://kb.indiana.edu/data/acjq.html

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What is the KB?

The KB is a system with three physical components: 1. It is a repository of problems and their resolutions

(currently holding over 7,500 entries);2. It is a search engine to sort through that repository

(currently handling over 75,000 queries each week); and 3. It is a user interface that allows a user to engage the

search engine to manage the data in the currently used by hundreds of thousands of users worldwide).

Wonderful training tool

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Quality Control Process

• Extensive process control

• Review and address the “goose eggs”

• Measure the “no, I did not get an answer”

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Connecting the People and the Technology

• Trouble Ticket System replaced with Work Flow System

• Eliminates the “Post-It-Note” syndrome

• Manages workload, communication, information, and escalation.

• Eliminates duplication of work

• Manages KB process

• New Enterprise System in development

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Student Technology Center Consultants

• 1200+ Machines, 40+ Labs, 190 Consultants

• 60 percent of student body use consultant services

• Training previously focused on technology

• Change to service oriented training, given technology resources

• Implemented single system resources

• Improved satisfaction from 75% to 94%

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Residential IT Support

• In-room services – 11,000+ students

• Residential Technology Centers – 400 workstations

• Concentrating on proactive support

• Process improvement: connection to network

• Support Center first line of contact

• Overall Satisfaction 94.1%– Concentrate on RTC H/W, S/W

– Consulting – Knowledge and ability increased 16% in 1 year

– Consulting – Courtesy and Helpfulness increased 21% in 1 year!

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Education Program

• Better educated users support themselves

– Or ask harder questions….

• “Free” classroom training

• Free CBT training

• CBT topics integrated into KB entries

• Satisfaction rating 96.7%

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Good Support – A total team effort

• Not just the Support Organization• Careful Implementation Plans• Extensive Change Management • Preparation of Support Resources

– Consultant training– KB entry– Support Tools

• Careful communication to Organization and Customer base

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IT Support@IU

Support in Depth

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Center for Statistical and Mathematical Computing

• Formed in 1991, prototype for IT center specialized support services.

• http://www.indiana.edu/~statmath/

• Formed as part of Interdisciplinary Consortium of Statistical Applications, with Dept. of Mathematics and Graduate School.

• Math and Grad School provide statistical consulting by a faculty member and specialized classes

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Stat/Math Center, 2

• Most full time staff holders of terminal degrees (Ph.D or Ed.D)• Offers education, consulting, software management.• Software grouped into three categories:

– General utility. Expert consulting & provision (often via site licenses)

– Specialized but critical utility: some consulting & provision– Utility within one department: provision

• Consulting: offer phone, e-mail, and long term consulting. Long term done with team of researcher, statistics consultant, and statistical computing consultant

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Unix Workstation Support Group

• http://www.uwsg.indiana.edu/

• Supports people using Unix as a desktop workstation OS, from astrophysicists running a commercial Unix variant in their research lab to undergraduates running Linux in their dorm room

• Offers classroom and online training, mirror sites, site licenses

• Staff commonly present papers and give tutorials

• Often collaborates with CS dept

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Library Electronic Text Resource Service

• http://www.indiana.edu/~letrs/

• Consulting and services in support of electronic delivery of texts

• Partnership with University library, for both service and Victorian Women Writers Project (http://www.indiana.edu/~letrs/vwwp/index.html)

• Led by manager with Ph.D. in English Literature

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Advanced Visualization Laboratory

• http://avl.iu.edu/

• Manages VR facilities, provides consulting on immersive and advanced visualization facilities

• Writes community codes (3DIVE, XMView) in collaboration with CS and Chemistry departments

• Managed by Ph.D. computer scientist

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Specialized Support Services: keys to success

• Pareto 80-20 rule. Critical additions to human knowledge (and accomplishments that distinguish university overall) often come from those with nonstandard computing needs

• Specialized support services successful when:– Strategic need spans multiple academic units– Staffed by consultants expert in content and computing

tools– Consultants and researchers view each other as partners– Formal partnership with one or more academic units

helpful

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IT Support@IU

Distributed Support

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Leveraged Support Model

• Roles (Voss, Workman, Alspaugh, et al)

– Support provided centrally

– Support provided by the users themselves

– Support provided by local IT staff

• Central IT organization responsible for ensuring all elements

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Quality Distributed SupportEvolution at Indiana University

• Distributed Support Assistants (DSA) Program

• Technical Information for Excellent Support (TIES) Program

– Education/Certification (Ed/Cert)

• Partners in Computing Support (PICS) Program

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DSA Program – Seeding Quality Local Support

• Unforeseen Consequences

– Development of local IT job market

– Close-knit Community

– Career paths – in and out of central IT

• Covered 26 campus entities

– Success led to ‘wild growing’ local support in other units

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TIES Program

• As support grew wild, it needed training and contact with central IT – thus TIES was born

– 10-12 weekly sessions each semester

– Training and information sharing focus

– Integration with DSAs elsewhere

• As time passed, need for detailed skills that were certifiable – Ed/Cert developed

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PICS Program

• More than just a user group – a set of services

– Tools acquired centrally, served to local staff

– Forums for discussion, sharing, and learning

– Special Focus on serving our ‘partners’

• Forum for getting feedback on services

• Forum for getting input from partners

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Organizing for Supporting Local Support Providers

• LSPs need forward looking focus

– Departmental Computing Advising and Support

– Departmental Support Lab

• LSPs need back-up support

– Local Support Provider Services

– LAN Lab

– 2nd and 3rd level expertise in key applications and technologies

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Satisfaction

• User Survey results for UITS distributed support services2000 1999 1998 1997

Satisfaction with UITS

Distributed Support Services 93.3% 90.1% 90.8% 91.4%

• User Survey results for local support providers2000 1999 1998 1997

Satisfaction with LSPs

in departments 89.1% 85.4% 85.7% 86.8%  

I

N

D

I

A

N

A

U

N

I

V

E

R

S

I

T

Y

Key Factors in Delivering Quality Local Support Services

• Organizing Central IT to deliver support

• Emphasizing Local Support Providers

• Emphasis on building LSP skills

• Emphasis on building User skills

• Providing Specialized Support services

• Providing Tools that enable user self-support (Knowledge Base)

I

N

D

I

A

N

A

U

N

I

V

E

R

S

I

T

Y

Other Environmental Success Factors

• Institutional/Enterprise Software Licensing

– Standardization and consistency

– Latest versions – lessen support burden

• Departmental IT Equipment Modernization and life-cycle funding

– Minimizing and eliminating problems and workload caused by out-of-date equipment

– Standardization – volume purchases

I

N

D

I

A

N

A

U

N

I

V

E

R

S

I

T

Y

Support is the Critical Element

• Adds value through standardization of hardware and software

• Adds value through education of customers and IT professionals

• Prevents some of the destruction of value through poorly designed software and poorly manufactured hardware,

I

N

D

I

A

N

A

U

N

I

V

E

R

S

I

T

Y

IT@IU

The Value Equation

I

N

D

I

A

N

A

U

N

I

V

E

R

S

I

T

Y

Some key results: Overall Satisfaction

87

89

91

93

95

97

99

91 92 93 94 95 96 97 98 99 00 01

Year

Per

cen

tag

e

I

N

D

I

A

N

A

U

N

I

V

E

R

S

I

T

Y

For faculty: How helpful has the information technology environment at IU been in your teaching

activity?

0

5

10

15

20

25

30

35

40

Percent

1997 1998 1999 2000

Year

Not at All Helpful

Somewhat Helpful

Very Helpful

I

N

D

I

A

N

A

U

N

I

V

E

R

S

I

T

Y

For faculty and graduate students: How helpful has the information technology environment at IU been

in your research activities?

05

1015202530354045

Percent

1997 1998 1999 2000

Year

Not at All Helpful

Somewhat Helpful

Very Helpful

I

N

D

I

A

N

A

U

N

I

V

E

R

S

I

T

Y

For undergraduate and graduate students: How helpful has the information technology environment

been in your learning experience at IU?

05

1015202530354045

Percent

1997 1998 1999 2000

Year

Not at All Helpful

Somewhat Helpful

Very Helpful

I

N

D

I

A

N

A

U

N

I

V

E

R

S

I

T

Y

Indiana University Bloomington