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The Metrics Monster
- 1. The Metrics Monster
Achieving VOI and ROI th
A hi i d through
h
Effective Metrics
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- 2. About ITSM Academy
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cc ed ed S duca o o de
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2
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- 3. Agenda
The Metrics Monster
Using the 7-Step
Ui th 7 St
Improvement Process
to Achieve VOI and
ROI
3
© ITSM Academy
- 4. The Metrics Monster
The issues that arise when we use measurements
and metrics to drive behavior instead of using
metrics to achieve VOI and ROI
Letting only financial goals drive our
desire for VOI and ROI, instead of seeing
g
the results of ITSM
VOI = Value on Investment = warm fuzzies
ROI = Return on Investment = cold facts
4
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- 5. The Metrics Monster
The disconnect that results from reverse engineering
IT Services from a set of measurements and metrics
Building from the bottom up,
up
without top down design
Identifying processes and
technologies as services
You cannot deliver “Change
g
Management” like a product
5
© ITSM Academy
- 6. What should you measure?
Focus first on the customer and their needs (i.e. IT
Services)
Identify your customer or
market segments
Gather customer requirements
for services they desire
Identify quantifiable aspects of
the requirements by breaking
down the requirements into
more granular pieces.
g p
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© ITSM Academy
- 7. What should you measure?
Gather requirements like you would for any other
q y y
needs
Build measurements and
metrics based on the
most granular pieces
Aggregate together to
gg g g
find meaningful points to
baseline
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- 8. What can you measure?
Validate the measurements and the metrics
What will they do with the information and
knowledge you will provide to them?
How will they use the information to see
VOI and ROI?
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- 9. Gather the data
Using various outputs, gather only the data needed
to fulfill the measurements
Look in all your Service
L ki ll S i
Management tools
Differentiate between
data and information
Do not waste time collecting unusable or
unimportant information
i t ti f ti
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- 10. Process the data
Identify the “currency” that your customers use
Translate dollars into hours or hours into
dollars
40 FTE Hours * $100= $4000
Slice and dice
Excel is your friend
Pivot tables
Histograms
Hi t
Statistical tools
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- 11. Analyze the data
Analyze the information using proven statistical, analysis
and critical thinking methods and techniques
ROI Calculator
Control charts
Advanced Statistical tools
Brain power
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- 12. ROI Worksheet:
Fewer IT Service Outages
_____ outages per month
Average outage: _____ minutes
Average users impacted: _______
g p
Average user rate: $_______/hour
Outage costs = $________/minute
Outage costs = $________/hour
Outage costs = $_________/month
Reduce by 20% = $________/month
Reduce by 35% = $________/month
Reduce by 50% = $________/month
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- 13. Sample ROI:
Fewer IT Service Outages
Annuall
A
10 outages per month
t th
Cost:
Average outage: 15 minutes
120
Average users impacted: 100
Outages
Average user rate: $50/hour
x .25 hours
Outage costs: $83/minute
Outage costs: $5,000/hour x 100 users
Outage costs: $12,500/month x $50
Reduce by 50%: $6,250/month hourly
= $150,000
At 1000 I
Impacted U
t d Users: $1 5M
$1.5M
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- 14. Present the data
Translate the analysis into meaningful pieces of
information and knowledge
Understand how y your customers
intend to use the information
and knowledge
Use their language
0%, 50%, 100% Options
Recommended solution
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© ITSM Academy
- 15. Take action
Be willing to throw out measurements and metrics if
the customer sees no value in them
Follow up on the chosen
recommendation
Begin a project
Identify accountable individuals
Identify funding
Begin the cycle again
Remember: Metrics are the results and
the goal not the beginning
goal,
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- 17. Want to Learn More?
Now available
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ITIL V3 Capability | Lifecycle
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Coming soon
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ISO 20K Professional Level Modules
ITIL Workshops
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