Presentation .ISB Service Science Workshop on New Value Metrics
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This document discusses the importance of measuring value delivered to clients, rather than just metrics. It provides examples of defining strategic value drivers and priorities and aligning metrics and targets to those priorities. Value is defined as things like improvements suggested and delivered, business outcomes achieved, and how much the service delighted the end user. The document advocates adopting a methodology to continuously identify value, define metrics, capture results, and improve.
Presentation .ISB Service Science Workshop on New Value Metrics
- 2. Basis of my ontology ! Business Improve Agility Achieve High Performance Maximize Value Achieve Competitive Advantage IT CIO Advisory & Transformation Services
- 3. What is common between Pilots and CXO s
- 4. But 30 of 34 measure DID NOT* are measurements serving their purpose ? * Representative case ..based on company experience
- 5. The new holy grail of service measurement VALUE
- 6. What is value to a client ? Service delivered as promised (SLA met) Improvements suggested Improvements delivered End user delighted Business outcome delivered (Owned) Business outcome influenced
- 7. Service provider deliver value ? Infrastructure layer Platform layer Business process layer Point of service integration Software or application layer This is where „BUSINESS‟ value gets created This is where I am
- 8. Example Value Delivered ( Value Register) Reusable artefacts in Performance Testing - Planning Start Date End Date Effort (pdays) Category 28-Jul-2009 10-Sep-2009 12 $ 70,000 savings per year Srno Goal Description Targets Actuals 1 Test effort reduction on planning From 5 To 3 days Average: 2 days of effort reduction in planning 2 Test effort reduction on performance test setup From 4 To 2 days From 4 To 2 days SIP was undertaken to make Test Planning less time consuming and cost effective and thus bringing down the overall testing costs to the project. Also the SIP was executed to capture and develop certain documents that will help speed up the activities of test setup. Assets Considered: Internet Banking, XXXXXX Benefits of these artefacts are derived in almost all projects. The performance planning effort is reduced by 2 days and performance test team has to spend very less time to do the test set-up leading to reduced dependency on project team Srno Projects Benefits 1 All Projects (27 projects) after this SIP has been implemented Performance Test Plan effort had been reduced by 2 days resulting in savings of (32X2000) - $64,000
- 9. Evolving approach Finding out what is value ? Define Strategic Value Drivers & Priorities Identify Metrics & Targets Capture & Report Establish Continuous Improvement DICE Methodology
- 10. Example Airline Performance Category –Business Outcomes • Contribution to Delay/ inaccurate Crew allocations • Contribution to reduction in “Look to book ratio” – How many people visiting the site (xxxyt.com) and making a booking ( i.e. creating a PNR). • Contribution to Number of complains about Frequent Flyer point accrual /redemption. • Contribution to increase in aircraft turnaround time (MRO) • Contribution to reduction aircraft maintenance schedule (MRO) • Contribution to reduction in MRO inventory count accuracy • Contribution to reduction in on-time delivery of operational plan components • Contribution to reduction in Crew productivity • Contribution to reduction in Crew Costs optimization • Contribution to increase in delay/loss of cargo • Contribution to increase in cargo billing issues • Contribution to decrease in Revenue tonnes per kilometer (RTK) • Contribution to reduction in number of bookings (through direct sales) • Contribution to number of disputed booking made ( i.e. booking with wrong pricing, wrong destination and or pricing )
- 11. Measures aligned to strategic priorities $ - Business Quality; $ - Optimization; $ - Avoidance Measurement Metric/ KPI Customer Satisfaction • NPS (Net Promoter Score) Business Partnership • No of PoC‟s per quarter - business take up • Value Adds per year • Number of forums with business participation enabled by provider • Business SLAs met Technology Leadership • Technology Superiority • Innovation Index • Agility Index • Collaboration Index • Community cloud solution offered for XXYT take up Operational Excellence • Exceeding Minimum Service Levels • Achieving Expected Service Levels • Projects (ADE + Transformation + Transition) executed on time/ on budget • Portfolio Simplicity index Engaged Organization • eCDI Survey results • # of hours of learning provided/ Quarter • # of XXYT staff rotation to ODC /half yearly BIS is a Business • AMS (IT Run) spend reduction YoY • ADE Spend reduction YoY • Percentage of variable costs in Total IT Run costs • Savings realized & reinvested • NPV/ROI • # of proactive proposals submitted • % of work delivered from offshore
- 12. In conclusion Value is tied to context Perception of the recipient Her personal context New measures may not be required Required Processes and Capabilities to understand context Approach to link services to context and need Deliver to need
- 13. The Future - Millennia Dash Board Technology Metrics Methodology Metrics Dollar Power Sustainability Human Excellence Social Media Green meetings (Quarterly) 45 CSR Hours 300 Women in Top Management 10% GHG (Green House Gas) Reduction 15% % Alternative Energy 12% Green Data Centres 15 Cost Reduction 18% Paper Recycling Per Capita Energy Reduction 34% 60%
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