Free Service Desk Training Series | How to Measure and Ensure Positive ROI in Your Service Desk | MetricNet Certified

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
%SayingVeryImportant
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”?
“profitable”?
“profitable”
ROI for End-user
Support in our
organization?
 Does End-user
support make a
positive economic
contribution?
Organizational
ROI
Investment
ROI
investments in End-
User Support make
economic sense?
 Technology
investments
(e.g. ITIL)
 Investments in
Training
Resources
 Insourcing and
Outsourcing
Operational
ROI
Service Desk?
Support
costs in end-user
support?
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”?
“profitable”
ROI for End-user
Support in our
organization?
 Does End-user
support make a
positive economic
contribution?
Organizational
ROI
Investment
ROI
investments in End-
User Support make
economic sense?
 Technology
investments
(e.g. ITIL)
 Investments in
Training
Resources
 Insourcing and
Outsourcing
Operational
ROI
Service Desk?
Support
costs in end-user
support?
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!

Cost/Contact HigherLower
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 Max
Cost/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)
Quality(Effectiveness)
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
CostperContact

First Contact Resolution Drives Customer Satisfaction
20%
40%
60%
80%
100%
20% 40% 60% 80% 100%
First Contact Resolution
CustomerSatisfaction

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)
CostperContact

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
CostperContact

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

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

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
FirstContactResolutionRate

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
FirstContactResolutionRate

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

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
AnnualTurnover

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
AgentSatisfaction

Benchmarking Performance Summary
Read MetricNet’s whitepaper on Benchmarking Peer Group Selection. Go to www.metricnet.com to get your copy!
Min Median Average Max
Cost/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?
“profitable”?
“profitable”
ROI for End-user
Support in our
organization?
 Does End-user
support make a
positive economic
contribution?
Organizational
ROI
Investment
ROI
investments in End-
User Support make
economic sense?
 Technology
investments
(e.g. ITIL)
 Investments in
Training
Resources
 Insourcing and
Outsourcing
Operational
ROI
Service Desk?
Support
costs in end-user
support?
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

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…
info@metricnet.com

Free Service Desk Training Series | How to Measure and Ensure Positive ROI in Your Service Desk | MetricNet Certified

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