South Florida HDI Malcolm Fry event Feb 29 2012

“The Power of Metrics For Optimal ITSM Performance”

Presented by: Malcolm Fry

South Florida HDI ChapterFebruary 29, 2012

Agenda8:00 AM Registration & Networking8:30 AM Introduction & Announcement9:00 AM Class begins10:15 AM Break10:45 AM Class resumes12 noon Lunch1:00 PM Class resumes2:00 PM Break2:30PM Class resumes3:15 PM Closing Announcements, Survey’s & Raffle prizes

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Malcolm Fry

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• Lives in England• Travels the world to share knowledge• HDI Ron Muns Lifetime Achievement Award• 15 cities throughout the US

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Metricity - The power of metrics for optimal ITSM performance

Malcolm Fry

[email protected]











Maths and the Ancients

• Aztecs / Mayans• Egyptians• Sumerians• Stonehenge• China• UK• Chacoans

http://www.nps.gov/chcu/photosmultimedia/Cheto-Ketl.htm











Chacoans – Chaco Canyon

• From AD 850 to 1250, Chaco was a hub of ceremony, trade, and administration for the prehistoric Four Corners area--unlike anything before or since. The Chacoan people combined many elements: pre-planned architectural designs, astronomical alignments, geometry, landscaping, and engineering to create an ancient urban center of spectacular public architecture.

• http://www.nps.gov/chcu/index.htm











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Metrics rule the world

• In everyday life, measurement is an essential component; how big? how far? how high? how heavy? what’s the time? what’s the cost?

• Sometimes measurement appears as a vague statement such as ‘soon’ rather than a more precise measure such as ’10 minutes’.











Basic baseball setup• Baseball is a bat-and-ball sport played between two teams of nine players

each• The aim is to score runs by hitting a thrown ball with a bat and touching a

series of four bases arranged at the corners of a ninety-foot diamond• Players on the batting team take turns hitting against the pitcher of the

fielding team, which tries to stop them from scoring runs by getting hitters out in any of several ways

• A player on the batting team can stop at any of the bases and later advance via a teammate's hit or other means

• The teams switch between batting and fielding whenever the fielding team records three outs

• One turn at bat for each team constitutes an inning and nine innings make up a professional game

• The team with the most runs at the end of the game wins

http://en.wikipedia.org/wiki/Baseball_rules

http://en.wikipedia.org/wiki/Baseball_rules











Baseball Field Dimensions











The legal weight for the ball in baseball is between 5 to 5.25 ounces (142 to 149 g)

It is 9 to 91⁄4 inches (229–235 mm) in circumference (27⁄8–3 in or 73–76 mm in diameter).

The bat shall be a smooth, round stick not more than 2 3/4 inches in diameter at the thickest part and not more than 42 inches in length

The bat shall be one piece of solid wood.

Bat and Ball











American League Standings

145192011-2012Update











Player stats - David Robertson











Chinese Hand Signals











Which metrics rock your boat?

• With your team make a list of the common metrics that you meet every day both in your social world and your business role.

• These should be high level metrics such as time of day.

• Each person should contribute at least one metric and have a reason for choosing that metric.











Maslow’s Hierarchy of Human Needs

Self actualization

Esteem

Belonging

Safety

Physiological











Hierarchy of metrics

Service Focal Point

Wisdom

Knowledge

Information

Data

You can build ineither direction











Building from the bottom

• “No point setting KPIs and CSFs if you cannot collect the data”

• Why would you collect data that you do not need?:– For further analysis– To provide a wide data base of metrics– Save now trim later

• Raw data can give you guidance











Drilling from the top

• “Data can be restriction concentrate on business needs first.”

• Why would you create CSFs and KPIs that you cannot measure?:– Better to concentrate on business & IT issues– Sometimes data can be mined to meet demands– It’s good to know our metric limitations

• CSFs, KPIs provide the structure











SFP – laying the foundations

• With your team give or create an example of the components required for a Single Focal Point to show the performance of the Service Desk.

• Include examples or suggestions for each of the four levels; data, information, knowledge and wisdom.

• You can either produce a bullet list or a story to explain your answer.











Service Focal Point (SFP)

• What is an SFP?• Why do we need an SFP?• How do I identify an SFP?• KPI?• CSF?• ITIL Contextual CSFs and KPIs• What is the structure of an SFP?• Can you have more than one SFP?











What is an SFP?

It is a Single Point, or value, from within a number of related metrics that Focuses the attention on a selected high level statistic so that overall performance or achievement can be quickly and accurately assessed.











Why do we need an SFP?

• To simplify complex metrics• To allow senior management to quickly assess

performance / status• To provide a common metric point across IT

Units• To provide an incentive for various IT Units• To harness performance achievements, e.g.

number of failed SFPs in a given period











How do I identify an SFP?

• Some are easier than others e.g. availability• The clue is often:– Colloquial – used in regular ITSM conversations– A point to which many metrics point– A Critical Success Factor– A Key Performance Indicator– Business / IT drivers

• A point that quantifies complex metrics











Key Performance Indicator (KPI)

• A metric that is used to help manage a process, IT Service or activity. Many metrics may be measured, but only the most important of these are defined as KPIs and used to actively manage and report on the process, IT service or activity. KPIs should be selected to ensure that efficiency, effectiveness and cost effectiveness are all managed. ITIL Glossary











Critical Success Factor (CSF)

• Something that must happen if a process, project, plan or IT service is to succeed. KPIs are used to measure the achievement of each CSF.

• For example a CSF of “protect IT service when making changes” could be measured by KPIs such as “percentage reduction of unsuccessful changes”, “percentage reduction in changes causing incidents” etc. ITIL Glossary











FunctionalStrategic

ITIL Contextual CSFs and KPIsA + B = C

Incident Management

CSF - Resolve incidents as quickly as possible minimizing impacts to the business

CSF - Maintain quality of IT services

CSF - Maintain user satisfaction with IT services

CSF - Increase visibility and communication of incidents to business and IT support staff

CSF - Align incident management activities and priorities with those of the business

CSF - Ensure that standardized methods and procedures are used for efficient and prompt response, analysis, documentation, ongoing management and reporting of incidents to maintain business confidence in IT capabilities

KPI - Average cost per incident

KPI - Percentage of incidents handled within agreed response time

A B

C











What is the structure of an SFP?

SFP

CSF

KPI KPI

CSF

KPI KPI

CSF

KPI KPI











Can you have more than one SFP?

• Yes of course• Most SFPs consist of a hierarchy of lower level SFPs

SFP

CSF - SFP

KPISFP

KPISFP

CSF - SFP

KPISFP

KPISFP

CSF - SFP

KPISFP

KPISFP











What is an SFP and why do we need it?

• Your job is to prepare a presentation to explain what an SFP is and why you should adopt an ITSM SFP at your location.

• You can present from your desk, there is no need to produce PowerPoint slides or flip charts but you can if you wish.











Good Day Bad Day - Approach

• GDBD concept• GDBD meeting agenda• GDBD collate and analyze metrics• GDBD simple workbook• GDBD meeting report• GDBD the meeting• GDBD outputs• GDBD Corrective Actions Report (CAR)• GDBD timeline











Good Day Bad Day (GDBD) concept

• Focuses the attention onto Service Management• Starts the day with a positive approach• Brings IT and it’s Customers closer• Brings ITSM and IT closer• Key contributor to Continual Service Improvement• Sets targets for IT and ITSM performance• Puts fun and electricity into metrics - METRICITY











GDBD meeting agenda

• Role call of mandatory attendees• Decide Good Day or Bad Day – document result• Review reasons for BD or why GD not 100%• Identify actions to be taken (Corrective Actions

Report - CAR)• Review actions from previous meetings (CAR)• Review potential issues for the day• Wrap up and document











GDBD collate and analyze metrics

• First identify your SFP• Then identify the data to calculate your SFP• Locate the sources and how the data will be

harvested• Create a method to centralize and analyze the dada• Agree a set time that the data will be harvested each

day• Pass the data through an analyzer e.g. a spreadsheet• Review the results of the analysis











Simple work bookGathering the data











Good Day











Bad Day











GDBD meeting report

• Created daily by ITSM at an agreed time• An overall grade is created from agreed ITSM data –

typically Incident Management• A fixed standard target is set for Good Day and Bad

Day ratings• Other contents:– Significant anomalies– Customer requested topics– Reports back from previous meeting– Corrective Actions Report











GDBD the meeting• Representatives of all IT functions must attend:

– In person– Telephony / Internet link / social media

• Held each morning - Guests are welcome• Fixed agenda• Good Day = quick revue and special actions since last meeting –

short meeting with a fixed duration• Bad Day = what went wrong and how we can stop it happening

again – as long as it takes• Review Corrective Actions Report• Brief review of changes in the pipeline• Different chair each week – prepares slides/website











GDBD outputs

• Meeting report:– Who attended– Key discussion points– Summary of comments

• Corrective Action Report:– List of actions from previous GDBD meetings– Status and updates on those actions– Alerts for potential outages or other issues











GDBD Corrective Actions Report

Good Day Bad Day - Corrective Actions Report (CAR)

CAR Issue Number 10 CAR Issue date 4th Feb 2012

GDBD meeting ITSM Date Other Projectreference Reference Date Service Owner Issue Action Completed Data

Outstanding IssuesGDBD010 CM Dept 4th Dec 2012 Change Management A. Person Change to Stock system failed due to

wrong version of search engine being installed.

Install an extra step into the Program Change process to ensure that correct versions are installed in the future

4th Feb 2012 For example cost, savings, start and end dates











GDBD - timeline

Collate Metrics

Prepare GDBD meeting report

Publish GDBD meeting report

Run GDBD meeting

Publish GDBD report

Prepare GDBD report

GD or BD?

Decide if it is a GD or BD

Enter GDBD data

Initiate BD procedure

Prepare GDBD Corrective

Action Report

GD

BD

Prepare GDBD

presentation

Perform actions from

CARs











Expanding GDBD meeting components

• The GDBD meeting needs an agenda, locations for potential metrics and a meeting report therefore will you please:– Produce a standard agenda for all GDBD meetings– Produce a standard report format for all GDBD

meetings– Identify potential metrics and their location

• Please use a flipchart for your answers











The key metrics for ITSM

• Incident Management – 6 CSFs – 18 KPIs• Change management – 3 CSFs – 16 KPIs• Problem Management – 3 CSFs – 16 KPIs• Service Desks – 5 CSFs – 6 KPIs & 6 Survey

types• Service Asset and Configuration Management

– 3 CSFs – 16 KPIs











5 key elements

Good Day

Bad Day

Incident Management

6 CSFs – 18 KPIs

Change management

3 CSFs – 16 KPIs

Problem Management

3 CSFs – 16 KPIs

Service Desk10 Metrics & 6 Survey types

Service Asset & Configuration

3 CSFs – 16 KPIs











Incident Management

Good Day

Bad Day

Incident Management

6 CSFs – 18 KPIs

Change management

3 CSFs – 16 KPIs

Problem Management

3 CSFs – 16 KPIs



3 CSFs – 16 KPIs











GDBD – Incident ManagementGood Day

Bad Day




























KPI - Breakdown of incidents at each stage (e.g. logged, work in progress, closed etc.)

KPI - Mean elapsed time to achieve incident resolution or circumvention, broken down by impact code

KPI - Number and percentage of incidents resolved remotely, without the need for a visit

KPI - Percentage of incidents closed by the service desk without reference to other levels of support

KPI - Number of incidents resolved without impact to the business






















KPI - Number and percentage of major incidents for each IT service

KPI - Size of current incident backlog for each IT service

KPI - Total numbers of incidents (as a control measure)






















KPI - Percentage of satisfaction surveys answered versus total number of satisfaction

surveys sent

KPI - Average user/customer survey score (total and by question category)






















KPI - Number of business user complaints or issues about the content and quality of incident communications

KPI - Average number of service desk calls or other contacts from business users for incidents already reported






















KPI - Average cost per incident

KPI - Percentage of incidents handled within agreed response time






















KPI - Number and percentage of incidents related to changes and releases.

KPI - Number and percentage of incidents incorrectly categorized

KPI - Number and percentage of incidents incorrectly assigned

KPI - Number and percentage of incidents processed per service desk agent











Incident Management appraisal

• Your team task is to look at all of the Incident Management KPIs and CSFs listed and decide which ones are not required and list any that are missing or could be added.











Service Desk

Good Day

Bad Day

Incident Management

6 CSFs – 18 KPIs

Change management

3 CSFs – 16 KPIs

Problem Management

3 CSFs – 16 KPIs



3 CSFs – 16 KPIs











Service Desk

Good Day

Bad Day

Incident Management

6 CSFs – 18 KPIs

Change management

3 CSFs – 16 KPIs

Problem Management

3 CSFs – 16 KPIs



3 CSFs – 16 KPIs











GDBD – Service Desk

Good Day

Bad Day

CSF – Average time to resolve an incident (when resolved at first line).

CSF – The percentage of calls resolved during the first contact with the service desk, i.e. while the user is still on the telephone to report the call

CSF – The percentage of calls resolved by the service desk staff themselves, without having to seek deeper support from other groups. Note that some desks will choose to co-locate or embed more technically skilled second-line staff with the service desk. In such cases it is important when making comparisons to also separate out: (i) the percentage resolved by the service desk staff alone; and (ii) the percentage resolved by the first-line service desk staff and second-line support staff combined.

CSF – Average service desk cost of handling an incident

CSF – Average time to escalate an incident (where first-line resolution is not possible).





















CSF – Average service desk cost of handling an incident

KPI - Total cost of the service desk divided by the number of calls

KPI - Percentage of call duration time on the desk overall and cost per minute (total costs for the period divided by total call duration minutes

KPI - Percentage of customer or user updates conducted within target times, as defined in SLA targets

KPI - Average time to review and close a resolved call

KPI -Cost per call by type

KPI - The number of calls broken down by time of day and day of week











Survey Techniques & Tools

After-call surveyCallers are asked to remain on the phone after the call and then asked to rate the service they were provided

Outbound telephone survey

Customers and users who have previously used the service desk are contacted some time after their experience with the service desk

Personal interviews

Customers and users are interviewed personally by the person doing the survey. This is especially effective for customers or users who use the service desk extensively or who have had a very negative experience

Group interviewsCustomers and users are interviewed in small groups. This is good for gathering general impressions and for determining whether there is a need to change certain aspects of the service desk, e.g. service hours or location

Postal/email surveys

Survey questionnaires are mailed to a target set of customers and users. They are asked to return their responses by email or post

Online surveys Questionnaires are posted on a website and users and customers encouraged via email or links from a popular site to participate in the survey











Some survey structure tips

Odd number choice

By using an odd number choice, e.g. 1 to 5, you let the person completing the survey to opt out of the survey without making a decision by allowing them to choose the middle ground, e.g. a 3 in a 1 to 5 survey question.

Even number choice

The even number choice forces the survey completer to make a choice. For example in a 1 to 6 ratio 3 is fail and a 4 is pass there is no middle ground.

Word choiceWord choice surveys are often marketing driven because they usually have an odd number word choice such as Excellent, Very Good, Satisfactory, Poor and Unsatisfactory which becomes 3 success choices and two failure choices.

Benchmark e.g. SLA

Benchmarks are great for getting a meaningful response, e.g. “our SLA states that we should answer your calls within 30 seconds in your opinion how well are we achieving this target?”

Multiple choice Multiple choice is similar to word choice except the instead of a word the answer is chosen from a selection of phrases.

Good/ImportantThe Good/Important approach ensures that not only do you get a grading but also an indicator as to the relevance of the question. These are also known as balanced surveys.











What are the benefits of a balanced approach?

• It keeps perspective• Highlights weaknesses• You can see impact of improvements• Easy to understand• Not just for one resource











Balanced surveys – the Questions

• Always ask two questions:1. How good are we performing?2. How important is it to you?

• Always use even number scales• Relate the survey to your balanced approach











Balanced survey – the Results

One scale of 1-8 where one is bad you got the following results:How good? 2

58

How can you translate these answers?What about now?

How good? 2:1 How important?5:78:1











Balanced survey – the Graphgood

1

2

3

8

7

6

5

4

3

2

1

important

1 2 3 4 5 6 7 8

++

+---

-+











10 useful tips

1. Understand the metric hierarchy2. Collect every thing but only report that what needs reporting3. Make sure each level understand their roles4. Metrics should measure success not endorse failure5. If in doubt collect the data6. Metrics will evolve as trends and futures appear7. Make sure that new technologies capture correct data8. Make sure everyone knows their roles9. Don’t set targets that wrongly drive behaviour10. Ensure you understand the nature of the recipient











MALCOLM [email protected]

Thanks

mailto:[email protected]














Problem Management

Good Day

Bad Day

Incident Management

6 CSFs – 18 KPIs

Change management

3 CSFs – 16 KPIs

Problem Management

3 CSFs – 16 KPIs



3 CSFs – 16 KPIs











Problem Management

Good Day

Bad Day

Incident Management

6 CSFs – 18 KPIs

Change management

3 CSFs – 16 KPIs

Problem Management

3 CSFs – 16 KPIs



3 CSFs – 16 KPIs











GDBD – Problem Management

Good Day

Bad Day

CSF – Provide overall quality and professionalism of Problem handling activities to maintain Business confidence in IT capabilities

CSF – Minimize the impact on known errors on the KEDB

CSF – Maintain Quality of IT Services through elimination of recurring Incidents





















CSF – Minimize the impact on known errors on the KEDB

KPI - The number of known errors added to the KEDB

KPI - Average incident resolution time for those incidents linked to problem records

KPI -The percentage accuracy of the KEDB (from audits of the database)

KPI - Percentage of incidents closed by the service desk without reference to other levels of support





















CSF – Maintain Quality of IT Services through elimination of recurring Incidents

KPI -Total numbers of problems (as a control measure)

KPI - Size of current problem backlog for each IT service

KPI - Number of repeat incidents for each IT service





















CSF – Provide overall quality and professionalism of Problem handling activities to maintain Business confidence in IT capabilities

KPI - The number of major problems (opened and closed and backlog)

KPI - The percentage of major problem reviews successfully performed

KPI - The percentage of major problem reviews completed successfully and on time

KPI - Number and percentage of problems incorrectly assigned

KPI - Number and percentage of problems incorrectly categorized

KPI - The backlog of outstanding problems and the trend (static, reducing or increasing?)

KPI - Number and percentage of problems that exceeded their target resolution times

KPI - Percentage of problems resolved within SLA targets (and the percentage that are notl)

KPI - Average cost per problem











Change Management

Good Day

Bad Day

Incident Management

6 CSFs – 18 KPIs

Change management

3 CSFs – 16 KPIs

Problem Management

3 CSFs – 16 KPIs



3 CSFs – 16 KPIs











Change Management

Good Day

Bad Day

Incident Management

6 CSFs – 18 KPIs

Change management

3 CSFs – 16 KPIs

Problem Management

3 CSFs – 16 KPIs



3 CSFs – 16 KPIs











GDBD – Change Management

Good Day

Bad Day

CSF – Optimizing overall business riskCSF – Responding to business and IT requests for change that will align the services with the business needs while maximizing value

CSF – Ensuring that all changes to configuration items are well managed and recorded in the configuration management system





















CSF – Responding to business and IT requests for change that will align the services with the business needs while maximizing value

KPI - Increase in the percentage of changes that meet the customer’s agreed requirements, e.g. quality/cost/time

KPI -The benefits of change (expressed as ‘value of improvements made’ + ‘negative impacts prevented or terminated’) exceed the costs of change

KPI -Reduction in the backlog of change requests

KPI - Average time to implement meets SLA targets, based on urgency/priority/change type

KPI - Increase in accuracy of predictions for time, quality, cost, risk, resource and commercial impact

KPI -Increase in scores in survey of stakeholder satisfaction for the change management process





















CSF – Optimizing overall business risk

KPI - Reduction in the number of disruptions to services, defects and re-work caused by inaccurate specification, poor or incomplete impact assessment

KPI -Reduction in the percentage of changes that are categorized as emergency changes

KPI -Increase in change success rate (percentage of changes deemed successful at review/number of changes authorized)

KPI - Reduction in the number of changes where remediation is invoked

KPI - Reduction in the number of failed changes

KPI -Reduction in the number of unauthorized changes identified

KPI -Reduction in the number of incidents attributed to changes





















CSF – Ensuring that all changes to configuration items are well managed and recorded in the configuration management system

KPI - Reduction in the number and percentage of changes with incomplete change specifications

KPI -Reduction in number and percentage of discrepancies found by service asset and configuration management verification and audit

KPI - Reduction in the number and percentage of changes with incomplete impact assessments

KPI - Reduction in number of audit compliance issues for the change management process











Service Asset & Configuration Management

Good Day

Bad Day

Incident Management

6 CSFs – 18 KPIs

Change management

3 CSFs – 16 KPIs

Problem Management

3 CSFs – 16 KPIs



3 CSFs – 16 KPIs











Service Asset & Configuration Management

Good Day

Bad Day

Incident Management

6 CSFs – 18 KPIs

Change management

3 CSFs – 16 KPIs

Problem Management

3 CSFs – 16 KPIs



3 CSFs – 16 KPIs











GDBD – Service Asset & Configuration Management

Good Day

Bad Day

CSF – Supporting efficient and effective service management processes by providing accurate configuration information at the right time

CSF – Accounting for, managing and protecting the integrity of CIs throughout the service Iife cycle

CSF – Establishing and maintaining an accurate and complete configuration management system (CMS)





















CSF – Accounting for, managing and protecting the integrity of CIs throughout the service Iife cycle

KPI - Improved accuracy in budgets and charges for the assets utilized by each customer or business unit

KPI -Reduced number of exceptions reported during configuration audits

KPI - Increase in re-use and redistribution of under-utilized resources and assets

KPI - Reduction in the use of unauthorized hardware and software, non-standard and variant builds that increase complexity, support costs and risk to the business services





















CSF – Supporting efficient and effective service management processes by providing accurate configuration information at the right time

KPI - Percentage improvement in maintenance scheduling over the life of an asset (not too much, not too late

KPI -Improved speed for incident management to identify faulty CIs and restore service

KPI - Reduction in the average time and cost of diagnosing and resolving incidents and problems (by type)

KPI - Improved ratio of used licences against paid-for licences

KPI -Reduction in risks due to early identification of unauthorized change

KPI - Improvement in time to identify poor- performing and poor-quality assets

KPI - Reduced percentage of changes not completed successfully or causing errors because of poor impact assessment, incorrect data in the CMS, or poor version control





















CSF – Establishing and maintaining an accurate and complete configuration management system (CMS)

KPI - Reduction in business impact of outages and incidents caused by poor service asset and configuration management

KPI - Increased quality and accuracy of configuration information

KPI - Improved audit compliance

KPI - Shorter audits as quality configuration information is easily accessible

KPI - Fewer errors caused by people working with out-of-date information

Closing & Raffle

• Additional Networking– Doral Ale House

• Chapter Survey• https://fnnl.it/fkj

• Next Meeting April 19 at University of Miami

https://fnnl.it/fkj

Thank You

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Technology

South Florida HDI Malcolm Fry event Feb 29 2012