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ITIL :: View topic - Best Practice for the KPI of decrease ticket volume
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Best Practice for the KPI of decrease ticket volume

 
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airflying
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Joined: Nov 16, 2007
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PostPosted: Thu Apr 09, 2009 6:34 pm    Post subject: Best Practice for the KPI of decrease ticket volume Reply with quote

Hi there,

I am operating an service desk in the outsource model, and currently the outsource contract volume is base on the incoming ticket volume, after we introduce ITIL, one objective is to decrease the ticket volume via problem mangement or other service improvement methods.

Currently we only have the KPI for the ticket initial response time, maximum processing time, and customer survey. And derease ticket volume seems not be interested by the outsource vendor as they charge us base on the ticket volume. Currently we are trying to review the contract and wonder if anyone have the best practice in your team to set the proper KPI to enable this initiatives for the team.

Thank you!

Best Regards
Andrew
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Diarmid
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Joined: Mar 04, 2008
Posts: 1884
Location: Newcastle-under-Lyme

PostPosted: Thu Apr 09, 2009 7:21 pm    Post subject: Reply with quote

The relationship between problem resolution and incident occurence is not quite so simple.

Obviously resolving a specific problem will mean that incidents no longer occur for that cause, but sometimes what you achieve is a better enabled user population who then proceed to further stretch the limits of your service and consequently experience more incidents rather than less. A lot depends on the maturity of the service and of the organization.

Another primary factor is functional stability. If there is constant introduction of new or changed function, then there will be constant introduction of problems and incidents and therefore problem resolution may struggle to keep up.

Another factor is that good problem management focusses on the high impact, high risk areas for the business. Depending on the nature of the services, such problems may not be well associated with high volume incidents.

I'm not saying that problem management can't or won't lead to an overall reduction in incidents. It may well do in most cases, but the proper measure of effective problem management is business benefit. Don't compromise this with excessive focus on reducing incidents.

To address your main question, if I understand you correctly you have an outsourced service desk, but internal service management, including problem management (if I am wrong and your supplier also does problem management/service improvement for you, then the charging model is just plain wrong.)

The simplest situation is if your supplier just provides first line support, because that means their actions should not impact on the overall number of incidents. although you should measure measure failed resolution and escalation numbers.

.... it gets too complicated to describe this without knowing a great deal more about your services and your contracts, but, in short, you can only set meaningful KPIs on the supplier if they relate to the service provided.
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"Method goes far to prevent trouble in business: for it makes the task easy, hinders confusion, saves abundance of time, and instructs those that have business depending, both what to do and what to hope."
William Penn 1644-1718
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airflying
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PostPosted: Fri Apr 10, 2009 12:30 pm    Post subject: Reply with quote

Hi Diarmid,

Thank you so much for your reply and advice.

Yes, you are right, we have outsouced the 1st level support and the charging model is base on the incoming ticket volume, and all the rest is hosted inside by my company. Initially we feel it's reasonable as the main purpose is for incident handling by the 1st level, but with higher efficiency requirement in IT now, we found it is a big pain for us to align the current charge model with our corp IT direction (improve problem management and continual service improvement, and as a result the ticket supposed to be reduced). Of course we have the contract mentioned that the vendor also need to improve our serivce, but not in detail how. And due to the contradict to the charging model, I can't see interest from the vendor on this objective.
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Diarmid
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Joined: Mar 04, 2008
Posts: 1884
Location: Newcastle-under-Lyme

PostPosted: Fri Apr 10, 2009 6:00 pm    Post subject: Reply with quote

airflying,

the contractor's obligation to "improve" your service needs to be made explicit. Such phrases often creep in as little more than salesman-talk (their intention could be as little as "well, by virtue of our excellent service, your service is naturally better"). So you either have to cut your losses and accept the current arrangements or get the supplier to define and quantify service improvement. From this you can derive measures.

On the up side, there is nothing in the arrangement to stop you pursuing good problem management (which, despite my caveats, can lead to reductions in incidents) and service improvement initiatives aimed at incident reduction.

One thing to be aware of (for good and bad reasons) is that you can radically change incident occurrence by redefining what an incident is. An example, that you may already do, is resetting passwords. This can be defined as a service request and if you can then automate it, it does not have to go to the service desk at all.
_________________
"Method goes far to prevent trouble in business: for it makes the task easy, hinders confusion, saves abundance of time, and instructs those that have business depending, both what to do and what to hope."
William Penn 1644-1718
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gtirloni
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Joined: Dec 19, 2008
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PostPosted: Fri Apr 17, 2009 3:10 am    Post subject: Reply with quote

Make sure you and your provider are classifying service requests and incidents accordingly.

From a business perspective, analyze the most impacting issues and get problem management working on it. How you identify the most impacting ones ? That's going to depend on your business and you'll have to balance number of incidents, individual cost, risk and other variables.

Like it was said, you can usually increase performance a lot by analyzing service requests alone and acting on them. Where I work we've realized awesome cost savings and improved customer satisfaction by automating things like password resets and better integration between systems to make sure users don't have to multiple requests for one end result.

I advise you to keep service management, specially problem management, within your organization. When you let your provider "improve" itself when they only have to gain from the increased number of incidents, you loose. That's in your special case... I've seen service management been almost totally outsourced and that included problem management and "improving services"... but then the metrics and contracts are totally different and it's a much bigger strategy solution.
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