Renaissance Reveals Wasted Resources, Under-utilization, and Develops Organizational Efficiencies in 4 Months
The Enterprise Site Support (ESS) group within IT Operations of a top 20 Fortune 100 company had just completed the reorganization of its site support structure. The consolidation of resources across multiple states was the start of an effort to streamline IT support operations. During the course of this transition ESS has maintained the majority of its operational staffing. The ESS group employs 122 managers, supervisors, and techs which results in $11.96M in operational costs. ESS interacts with all levels of users, including senior executives, to perform services ranging from password resets to the installation of equipment.
Due to reductions in operational and business functions within the organization there is a need to evaluate the services being provided by this group as well as the value added time within these services to figure out appropriate staffing levels. Renaissance Data Solutions was tasked to; define services provided by associates; baseline current organizational structure and workflow; analyze value added activities, workload volumes and processing procedures; design future state organizational model and workflow; and develop managerial metrics.
The services offered by the ESS group was not documented in its entirety. Also the division of services based on experience was not documented or followed. Many entry level tasks were completed by highly skilled resources.
As data collection began it became obvious there were discrepancies in reporting. Associates did not log their time correctly and 40% to 50% of the services provided are not tacked in a data collection system. Resources were providing services without tracking their time and duties. Additionally the associates log time in separate systems and a detailed report had not been developed.
Conduct full evaluation of services supported by ESS technicians, conduct SLA data analysis and value add analysis in 4 months. Utilizing data, evaluate the current staffing model and gap analyze to determine appropriate staffing levels. In an effort to increase value added time ratio and employee utilization.
RDS approached the business problem following the DMAIC methodology. Clearly defining the current state operations was critical before data collection could begin. RDS worked with site support managers to develop an organizational chart outlining different Lines of Business supported, accurate associates and positions held, as well contractor status and number of associates supported and different sites. Accompanied with developed operational definitions of services buckets, Site Support Roles and functions, Renaissance had created an accurate map of the current state operations.
Data flow maps were built with subject matter experts to assist with designing a data collection strategy that included manual data collection and data pulled from tracking systems. Renaissance was able to merge the two data collection methods to perform a “Current State” utilization study and answer the critical question: After allowing for non-ticketed work what are the current utilization levels? The utilization study data was conservatively calculated, accounting for lunch and break times.
Renaissance Data Solutions quickly identified 18 FTE positions that were either open or out of scope and could be immediately removed from the operating budget. 19 FTE positions identified from the utilization study.
Currently the manager to technician ratio is 1:5, in the future state the optimal ratio is a 1:16. The current baseline unit cost is $106 per ticket resolved, in the redesigned operational model the unit cost is $68, a 35% reduction.
- Call Center
23 Associates = 100% – 70% = 30% Typical Unutilized Time
30% * 23 Associates = 690% / 100 = 6.9 FTE Potential
- Corporate LOB 1
30 Associates = 100% – 85% = 15% Typical Unutilized Time
15% * 30 Associates = 450% / 100 = 4.5 FTE Potential
- Corporate LOB 2
5 Associates = 100% – 85% = 15% Typical Unutilized Time
15% * 5 Associates = 75% / 100 = .75 FTE Potential
- Mail Order
28 Associates = 100% – 69% = 31% Typical Unutilized Time
31% * 28 Associates = 868% / 100 = 8.7 FTE Potential
11 Associates = 100 – 76 = 24% Typical Unutilized Time
24% * 11 Associates = 264% / 100 = 2.6 FTE Potential
Potential Financial Impact
18 Immediate + 19 Utilization = 37 Total
37 x $98,000 = $3,626,000
Renaissance Foundation for Success
By leveraging the right mix of simulation, hands-on experience, and catered attention, the Renaissance team was able to identify root cause, raise awareness about key performance indicators, and implement changes that had a direct impact on the customers as well as the company’s bottom line.