Monthly Archives: June 2015

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5 reasons why IT teams should use Net Promoter

SMAC-2015-Speaker-Dave-OReardon

 

 

 

 

With guest blogger Dave O’Reardon

For those of you not familiar with Net Promoter®, let’s start with a 1 minute introduction..

Net Promoter is an open-source methodology used by 65% of the world’s top 200 companies to grow their businesses by increasing customer loyalty.  At its heart is a metric called the Net Promoter Scoresm (NPS®) that measures the willingness of customers to recommend a company’s products or services.

An NPS is calculated by asking customers a question along the lines of, “On a scale of 0 to 10, how likely are you to recommend us to a friend or colleague?”. Based on their rating, a customer is categorised as a Detractor (when they give a rating of 6 or below), a Passive (7 or 8) or a Promoter (9 or 10).  The NPS is then calculated by subtracting the percentage of Detractors from the percentage of Promoters. This results in a score ranging from -100 (all your customers think you’re rubbish) to +100 (all your customers think you’re the bee’s knees).

Two very valuable follow-up questions ask the customer why they gave that rating, and what the number one thing is that they’d like to see improved.

With me so far? Great. Net Promoter, as a system for driving service improvement, is often overlooked or rejected by IT teams because of the irrelevance of the “likely to recommend” question for an internal service provider. But that concern is easy to address by simply changing the wording of that question (a topic for another day!). With the question reworded, you’re free to enjoy the benefits that Net Promoter has to offer.

Here are the top five reasons that IT teams should adopt it:

1. It is a globally proven service improvement methodology trusted by brands such as Apple, Google, Rackspace and Zappos. There are a mountain of case studies that show how effective it can be. Net Promoter has been around since 2006 and Google Trends shows that interest has been steadily growing ever since – it’s not going away anytime soon! If your organisation is already using Net Promoter, then using it for IT is a no-brainer. And if it’s not, then IT can lead the way. Your organisation probably won’t be far behind.

2.  Unlike traditional surveys for gathering customer feedback, a Net Promoter survey – with only three questions – is ridiculously quick and easy for customers to complete. Not only that but the third question (“What is the number one thing we could do to improve?”) is like having a service management consultant working for you for free. Forget process maturity assessments! If you’re serious about improving service and delivering value, everything you need to know is contained in your customers’ answers to that one question.

3.  The Net Promoter concept is simple to understand by staff at all levels.  The survey is simple, the calculation is simple and the behavioural change it requires is simple – focus on reducing the number of detractors.  And how do you do that? Just read the feedback given by your customers in answer to Questions 2 and 3 and all will be revealed.

4. About 75% of IT teams do customer satisfaction surveys of one sort or another. They run the survey, calculate a metric and bury the results in a management report. But in all but a few cases, no improvement action is taken. This is where Net Promoter comes into its own. It includes some fantastic practices that help you turn customer feedback into prioritised actions that lead to improved customer satisfaction/loyalty.

5. When you use a standard question, rating scale and calculation method you can benchmark yourself against others using that same method. An NPS is standardised so you can compare your NPS to that of other IT teams. Hell, because brand and industry NPS scores are widely published, you can even compare yourself to other organisations such as Qantas, iiNet or the Commonwealth Bank.  One of our clients, who used Net Promoter to improve IT customer satisfaction by 25 points in just 6 months, had the rallying cry of “Let’s not be a Toyota, let’s be a BMW”, referring to the relative Net Promoter Scores of those brands.

If you’re not surveying your customers to understand how they perceive your performance, you should be. And if you’re not using Net Promoter to do it, you should be.

Dave O’Reardon is leading a workshop onCustomer-driven service improvement with Net Promoter’ at Service Management 2015.

Net Promoter, NPS, and the NPS-related emoticons are registered service marks, and Net Promoter Score and Net Promoter System are service marks, of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld

 

 

 

By |2018-03-19T16:23:22+00:00June 22nd, 2015|blog, guest blogger, ITSM, Net Promoter®, Service Management 2015, Workshop|

Guerrilla IT – how to be an IT rebel with a cause

Mark Smalley Photo

 

 

 

 

With guest blogger Mark Smalley

I conducted two pre-conference workshops about ‘Guerrilla IT’ at the itSMF Norway annual event in March 2015. The idea for Guerrilla IT emerged in conversations with itSMF Norway’s Sofi Falberg at a conference in 2014. We spoke about people feeling the need to make relatively low key and informal individual contributions to improving ITSM, possibly under corporate radar. And that’s when I coined the term Guerrilla IT. Then before I knew it, I had committed to delivering a workshop about it in the new Service Bazaar format! In an expanded format, this workshop is programmed as one of the pre-conference workshops for itSMF Australia’s annual conference.

I announced the workshop as follows:

“Do you want to do something really worthwhile in IT yet keep getting ambushed by mealy-mouthed middle managers with their petty policies? In this interactive workshop we’ll explore and discover how to identify realistic initiatives and how to deploy them under corporate radar while keeping out of friendly fire. You’ll leave the session with some ideas for your specific situation as well as an arsenal of weapons for an IT rebel with a cause.”

In the Norwegian workshop we explored the following eight topics:

  1.      The concerns they the participants had at their organisation or in the case of consultants, one of their clients
  2.      The relationships that they thought needed the most improvement
  3.      The kind of behaviour that business people and IT people should exhibit
  4.      The factors that drive behaviour, and therefore need to be changed in order to influence behaviour
  5.      The degree of freedom that their organisation consciously or unconsciously afford them to take behave like an IT guerrillero or guerrillera
  6.      Their person appetite for heroic behaviour
  7.      The kind of guerrilla IT tactics that, given their organisation’s and their own nature, would be effective
  8.   Their ‘rebel’s resolutions’ – the takeaways that they could apply at work

Given the limited nature of a blog, here are the participants’ concerns and their thoughts on the kind of behaviour that would help improve things. This should give you an idea of what your peers think.

Participants concerns

  •        Ill-conceived services being abandoned on the doorstep of the ITSM department
  •        Lack of IT awareness of the business context and in particular the customers’ interests – in other words no business focus
  •        The shift from ITSM to Service Management in general
  •        The difficulties of changing the culture in an organisation, in particular resistance to change
  •        Lack of basic trust
  •        The challenges of working in a dysfunctional organisation
  •        The challenges of working in a disconnected organisation in which IT seems to live in a world of its own
  •        Change-overload – too much change to deal with

Desired behaviour  

I started off doing the behaviour part of the workshop in 2013 and have compiled and summarised the results of seven workshops, fine-tuning them from time to time as new insights emerge. The findings are categorised in three sections: (1) behaviour that applies to business people and IT people in an enterprise in equal measure; (2) IT-related behaviour that effective business people exhibit; (3) behaviour that you observe in effective IT people.

  1.   Enterprise

The enterprise fosters a culture in which business and IT share a joint vision and are part of the same story, have an ongoing dialogue, have mature conversations, strike balances, enjoy working together

  1.      Business people
  •        Specify outcomes rather than solutions
  •        Articulate needs and expectations clearly
  •        Set priorities, take decisions, accept risks
  •        Understand IT’s capabilities and limitations
  •        Participate in activities such as testing
  1.      IT people
  •        Understand business processes and outcomes, and impact of IT
  •        Talk in business terms about benefits, costs and risks, not systems and features
  •        Proactively suggest innovations to the business
  •        React to business change without being surprised that things change
  •        Replace ‘technical’ SLA’s by simple, honest and meaningful reporting

The burning question, of course, is how you achieve a change in behaviour. This is why I asked the participants to think about which factors drive behaviour. Their main  findings were: an understanding the consequences of their actions, a belief that change might be for the better of the enterprise and customers, a common goal (or enemy), likelihood of personal benefit, urgency, a ‘half-full’ attitude, and KPIs that are effective rather than those than invite contra-productive behaviour.

I’m much looking forward to exploring this further in Sydney, and will most certainly publish the findings.

 

This post was originally on Mark Smalley’s blog.

 

Mark Smalley is an IT Management Consultant at Smalley.IT and is specialised in application management and business information management. He is affiliated with the non-profit ASL BiSL Foundation, APMG-International, GamingWorks and AllThingsITSM. Mark is an inaugural member of the industry initiatives SM Congress and Taking Service Forward.

 

By |2018-03-19T16:23:22+00:00June 22nd, 2015|blog, GuerillaIT, guest blogger, ITSM, Service Management 2015, Workshop|

The Other Big Data Problem

 

David-Oakley-Service-Now-Grey-Scale

 

 

 

by guest blogger David Oakley, Managing Director, ANZ at ServiceNow.

It’s hard to miss one of today’s biggest technology opportunities confronting large enterprises – big data. Companies are amassing vast amounts of data ranging from website activity, user data, support issues and even directly from products that are deployed in the field. The quest, of course, is to find patterns, glean understanding and extract knowledge that will help improve the company’s business.

Unlocking the big data opportunity represents massive upside for enterprises, but there’s another big data issue plaguing many IT organisations. In many cases, IT lacks a single source of truth, a centralised, comprehensive understanding of IT services, the hardware and software underpinning these services, the way they interact and are configured, the cost of delivering these services, service level management, the demands for new or improved services, the associated projects, the upcoming changes and how all of these things Interact.

For IT, the service experience is the end state. This IT big data challenge stems from the necessity of IT to deliver on this service experience, to keep the services running and rapidly change as business needs change.

The lack of comprehensive truth directly translates to essential qualities, such as data centre or network uptime, application availability, security, ease of maintenance and the ability to implement change. Simply put, when you don’t know what you are working with, how it is configured or should be configured and how it impacts other things, you are fundamentally working in the dark. The repercussions are enormous. The wasted time spent by companies chasing what they think the issue is rather than what it really is becomes a massive overhead.

At a base level is the Configuration Management Database (CMDB) – often the object of controversy and deep misunderstanding. Who takes ownership? How is it done? How do you make it comprehensive? Is CMDB the starting point or the finishing line? Then, as soon as it is created, it is out of date!

The issue is not just the CMDB itself but the fragmentation that exists among IT tools and systems—islands and moats that prevent a centralised view and systematic consistency. Solving this crisis necessitates jettisoning individual, standalone tools and having a single system of record for IT. Once you have moved to a single system of record, you can focus on streamlining your process to ensure accuracy and decrease the time taken to recover from system impact. Ultimately, it means service quality up, costs down and a level of control that the business expects.

In the end, it is IT’s sole purpose to be a trusted advisor and service delivery partner for their users. After all, so much of the organisation is reliant on the data that IT manages for company services.

Does your IT organisation have a single understanding of IT costs and charge back? Service delivery – both by internal and vendor sources? Hardware and software asset management? Can you ensure consistency across all delivery models and resources? Are you well positioned for effectively managing an ever-changing landscape of applications and infrastructure? And are you prepared to extend your data across the company?

If the answer is ‘No’ to many or all of the above then a single system of record for IT is a proven solution to your IT big data challenge.

 

This article was originally published in the itSMFA April 2015 Bulletin.

 

By |2018-03-19T16:23:22+00:00June 10th, 2015|Big Data, guest blogger, ITSM, Service Management 2015|