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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
3 © MetricNet, LLC, www.metricnet.com
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
4 © MetricNet, LLC, www.metricnet.com
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
5 © MetricNet, LLC, www.metricnet.com
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
6 © MetricNet, LLC, www.metricnet.com
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 ?
7 © MetricNet, LLC, www.metricnet.com
ROI Defined
8 © MetricNet, LLC, www.metricnet.com
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
9 © MetricNet, LLC, www.metricnet.com
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
10 © MetricNet, LLC, www.metricnet.com
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
11 © MetricNet, LLC, www.metricnet.com
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?
12 © MetricNet, LLC, www.metricnet.com
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
13 © MetricNet, LLC, www.metricnet.com
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?
How do we optimize the
Cost/Quality tradeoff in
End-User Support?
© MetricNet, LLC, www.metricnet.com
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!
15 © MetricNet, LLC, 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
16 © MetricNet, LLC, www.metricnet.com
17 © MetricNet, LLC, www.metricnet.com
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)
18 © MetricNet, LLC, www.metricnet.com
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
© MetricNet, LLC, www.metricnet.com
Agent Utilization and First Contact Resolution Rate
Cost/Contact Customer Satisfaction
Agent
Utilization
First Contact
Resolution
20 © MetricNet, LLC, www.metricnet.com
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
21 © MetricNet, LLC, www.metricnet.com
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
22 © MetricNet, LLC, www.metricnet.com
Service Levels: ASA and Abandonment Rate
Cost/Contact Customer Satisfaction
Agent
Utilization
First
Contact
Resolution
Training Hours Scheduling
Efficiency
Service Levels:
ASA and AR
23 © MetricNet, LLC, www.metricnet.com
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
24 © MetricNet, LLC, www.metricnet.com
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
25 © MetricNet, LLC, www.metricnet.com
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
26 © MetricNet, LLC, www.metricnet.com
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
27 © MetricNet, LLC, www.metricnet.com
Training Hours Impact First Contact Resolution Rate
Cost/Contact Customer Satisfaction
Agent
Utilization
First
Contact
Resolution
Training Hours Scheduling
Efficiency
Service Levels:
ASA and AR
28 © MetricNet, LLC, www.metricnet.com
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
29 © MetricNet, LLC, www.metricnet.com
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
30 © MetricNet, LLC, www.metricnet.com
Agent Satisfaction
Cost/Contact Customer Satisfaction
Agent
Utilization
First
Contact
Resolution
Agent
Satisfaction
Training Hours
Absenteeism/
Turnover
Scheduling
Efficiency
Service Levels:
ASA and AR
31 © MetricNet, LLC, www.metricnet.com
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
32 © MetricNet, LLC, www.metricnet.com
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
33 © MetricNet, LLC, www.metricnet.com
Cause and Effect of Primary KPI’s
Cost/Contact Customer Satisfaction
Agent
Utilization
First
Contact
Resolution
Agent
Satisfaction
Training Hours
Absenteeism/
Turnover
Scheduling
Efficiency
Service Levels:
ASA and AR
34 © MetricNet, LLC, www.metricnet.com
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
35 © MetricNet, LLC, www.metricnet.com
36 © MetricNet, LLC, www.metricnet.com
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
Cost/Contact Customer Satisfaction
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
37 © MetricNet, LLC, www.metricnet.com
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
38 © MetricNet, LLC, www.metricnet.com
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?
39 © MetricNet, LLC, www.metricnet.com
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
40 © MetricNet, LLC, www.metricnet.com
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?
41 © MetricNet, LLC, www.metricnet.com
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
42 © MetricNet, LLC, www.metricnet.com
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
43 © MetricNet, LLC, www.metricnet.com
About MetricNet:
Your Benchmarking Partner
44 © MetricNet, LLC, www.metricnet.com
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
45 © MetricNet, LLC, www.metricnet.com
46 © MetricNet, LLC, www.metricnet.com
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
47 © MetricNet, LLC, www.metricnet.com
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
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
50 © MetricNet, LLC, www.metricnet.com
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By Phone…
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On Our Website…
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