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Unlocking the Hidden Value

of KPI Correlations

1 © MetricNet, LLC, www.metricnet.com

20 Years of Help Desk Data

More than 1,300 Help Desk Benchmarks

Global Database

30 Key Performance Indicators

Nearly 80 Industry Best Practices


Then and Now: 20 Years of Benchmarking Metrics

Key Performance

Indicator

Industry Average Performance

1988 2008

Monthly Contacts per

End-User 0.79 1.81

Cost per Contact $9.57 $21.52

Average Handle Time 6:27 12:20

Resolved on First

Contact 35% 68%

Resolved at Level 1 39% 84%

Starting Agent Salaries

(2008 dollars) $27,280 $36,340

Help Desk Cost per

End-User per Year $97 $574


The 20 Year Trend in Help Desk Budgets

Help Desk budgets have grown from 0.7% to 4.3% of corporate IT spending over the last 20 years.

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Help

Desk B

ud

get

as a

% o

f T

ota

l IT

Sp

en

d

1988 1996 2000 2004 2008 1992

0.7%

1.4% 1.8%

3.3%

4.0% 4.3% A 6 Fold Increase in Help Desk Budgets!


Four of the Most Important Industry MegaTrends

1. The Holistic Use of KPI’s: The Hidden Value of KPI

Correlations

Today’s Topic!

2. Customer Satisfaction: The Metric that Matters Most

Session 407: Wednesday at 10am

3. Striking the Right Balance: Cost vs. Quality in IT Support

Session 501: Wednesday at 11:15 am

4. Image Management: Successfully Marketing Your Help

Desk

Session 603: Wednesday at 2:45 pm


Two Paradigms for Help Desk KPI’s

The Historical Approach The Holistic Approach

Measurement

(75%)

Analysis

(15%)

Prescription

(7.5%)

Action

(2.5%)

Measurement

(5%)

Analysis

(20%)

Prescription

(30%)

Action

(45%)

Inc

rea

sin

g V

alu

e!


4

3

2

1

Customer

Enthusiasm

Industry MegaTrend: The Holistic Use of KPI’s

Measure

Diagnose

Prescribe

Implement

Model

Component Description

1. Measure

Measure help

desk

performance on

an ongoing basis

2. Diagnose

Benchmark

performance and

conduct a gap

analysis

3. Prescribe Define actions to

close the gap

4. Implement

Implement your

action plan and

improve

performance


The Most Common Help Desk KPI’s

Cost/contact

First Level Resolution Rate

% Escalated Level 1

Resolvable

Cost Productivity

Service Level

Quality

Call Handling Agent

Average speed of answer

(ASA)

Call abandonment rate

% answered within 30 sec

Average queue time

Average hold time

Average time to abandon

Percent of calls blocked

Contacts/agent-month

Agent utilization

Customer Satisfaction

First Contact Resolution Rate

Call Quality

Agent Occupancy

Agent Turnover

Absenteeism

Training hours

Agents as % of Total FTE’s

Schedule Adherence

Agent tenure

Agent Satisfaction

Call handle time

Talk time

After Call Work Time

First contact resolution rate

IVR completion rate

Percent of calls transferred

And there are hundreds more!!


But Which Ones Really Matter?

Cost/contact Cost

Productivity

Quality

Call Handling

Agent utilization

Customer satisfaction

First contact resolution rate

Agent Agent Satisfaction

Request a copy of MetricNet’s whitepaper on Help Desk Performance Metrics.

Aggregate Balanced scorecard

TCO First Level Resolution Rate


The Foundation Metrics: Cost and Quality

Cost/Contact

(Efficiency)

Customer Satisfaction

(Effectiveness)

10 © MetricNet, LLC, www.metricnet.com 10

Cost and Quality: Nothing Else Matters!

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


Cost/Contact

Cu

sto

mer

Sati

sfa

cti

on

Higher Lower

Higher A World-Class Help Desk

An “Average” Help Desk

BEST-IN-CLASS

PERFORMANCE CURVE

AVERAGE PERFORMANCE CURVE

Cost and Quality: The Two Foundation Metrics


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 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


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


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


A Summary of the Major 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


First Level Resolution Drives Total Cost of Ownership

Support Level

Cost per Incident

Resolved

Vendor

Desktop Support

Field Support

(inside company)

Level 2

(outside help desk)

Help Desk

$466

$138

$62

$41

$24


Your Help Desk 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

Putting it All Together: Benchmarking Case Study

Request a copy of MetricNet’s whitepaper on Help Desk Benchmarking.


Benchmarking Performance Summary

Request a copy of MetricNet’s whitepaper on Benchmarking Peer Group Selection.

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


Closing the Cost Gap

KPI Performance

Target

Key

Drivers Performance

Target Best Practice Prescription

Cost

per

Contact

Varies

Agent

Utilization 60%

Improve workforce scheduling practices

Establish agent utilization goal

Eliminate back shift if appropriate

Average

Speed of

Answer

45 sec Increase ASA service level target if

appropriate

Call

Abandon

Rate

6% Increase Call Abandon target if appropriate

Call Handle

Time Varies Provide additional agent training

IVR

Completion

Rate

Varies Re-architect the IVR to drive more volume

through the agent-less channel


Closing the Customer Satisfaction Gap

KPI Performa

nce

Target

Key

Drivers Performance


Customer

Satisfaction 90+%

First Contact

Resolution

Rate

70% - 80%

Establish an FCR goal

Provide additional agent training

Establish FCR as a key objective

Agent

Satisfaction 85%


Define Agent Career Path

Call Quality 90+% Establish a Call Quality target


Customer

Service Soft

Skills

Varies Provide additional agent training


Closing the First Contact Resolution Gap

KPI Performance

Target

Key

Drivers Performance


First

Contact

Resolution

Rate

80%

New Agent

Training

Hours

200+ hours

Establish an FCR target



Veteran

Agent

Training

Hours

100+ hours

Establish an FCR target



Call

Quality 90+%

Establish a Call Quality target


Knowledge

Mgmt. Varies Maintain a solutions knowledgebase


Closing the Agent Satisfaction Gap

KPI Performance

Target

Key

Drivers Performance


Agent

Satisfaction 80%

New Agent

Training

Hours

200+ hours Provide additional training opportunities for

new agents

Veteran

Agent

Training

Hours

100+ hours Provide additional training opportunities for

veteran agents

Career

Path Varies Document agent career path alternatives

Coaching/

Feedback Monthly Provide monthly, one-on-one coaching

Rewards &

Incentives Monthly

Offer monthly rewards and incentives

Monetary as well as non-monetary


Some Final Thoughts

A small number of KPI’s – keep it simple

The 80/20 rule – Less is More!

Remember the KPI Hierarchy

Cost and Quality First

Followed by Agent Utilization and First Contact Resolution

All KPI’s are interconnected

Learn the underlying drivers of each KPI!

Think of the KPI’s as Levers that you Control

Pull the right levers, and you will achieve the desired outcomes!


Other Best Practices Presentations by MetricNet

1. Customer Satisfaction: The Metric That Matters

Most: Session 407: Wednesday at 10am

2. Striking the Right Balance: Cost vs. Quality in IT

Support: Session 501: Wednesday at 11:15am

3. Image Management: Successfully Marketing Your

Help Desk: Session 603: Wednesday at 2:45 pm


Upcoming MetricNet Webcasts

Register at www.metricnet.com

Unleashing the Enormous Power of Service

Desk KPI’s

Wednesday, April 15th, 2009 at 2:00 pm EDT

IT Customer Satisfaction Measurement

Tuesday April 21st, 2009 at 2:00 pm - 3:30pm

EDT

For more information on Industry Best Practices, please register for

MetricNet’s free upcoming webcasts

Free Service Desk Training Series | Unlocking The Hidden Value of Service Desk KPI Correlations |...

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