ServiceNow Strategy

A Balanced ServiceNow KPI Scorecard For Optimization and Business Continuity

At the beginning of the month, we released our second annual ServiceNow Insight and Vision Report, detailing the state of ServiceNow adoption in the modern enterprise. The Report explores the construct that there are many layers to successfully building this digital tapestry of the future including insights on tactical and operational challenges that have the power to inhibit overall growth. Those layers, now more than ever, are increasingly complex.

Today, we’re looking at the main assertion of the Report (that ServiceNow is gearing up to be the heartbeat of the modern enterprise) under a different lens: How are businesses using the platform to optimize efficiency and maintain business continuity? We’re starting at KPI’s.

KPIs remain transactional, with resolution rates and employee satisfaction leading the charts

When looking to prove the business value of technology investment, you can only support and measure what you’re tracking and consistently striving towards. In this section of the report, we review the critical KPIs organizations are tracking to assess the success of their ServiceNow program.

We see that More Efficient Workflows comes out as the top result of implementing the ServiceNow platform, for the second year in a row. We also see this in the increase in time to resolve an incident and increased automation.

Also ranking in the top five KPIs, the number of respondents tracking Employee Experience and/or Employee Satisfaction grew six percent from last years’ data, the most significant change from last years’ KPI data.

“We improved our NPS score from 12 to 42 in one year and sustained it at that level the following year.” – Director, Healthcare Enterprise

While Significant Cost Savings was not a top result of implementing the ServiceNow platform as compared to efficiency metrics, it is still a top KPI tracked. This indicates that businesses are quantifying platform results such as downtime reduction and reduced service times as monetary gains for both top-line revenue and bottom-line cost-cutting.

The big caveat in this data: Measuring tactical success is different than tracking transformation. Threaded through these responses, we see an ecosystem tracking largely transactional KPIs, such as mean time to repair, and not a true balanced scorecard needed to measure production, efficiency, CSAT, employee experience, etc.

To achieve transformation on the scale of what’s possible, and effectively leverage ServiceNow to run business, Platform leaders have to evolve to fully measure our view of business value. As Acorio CEO, Ellen Daley would say, “We are moving the gravestones with the aspiration of digital transformation, but we are not moving the bodies.”

Key Takeaway: Your Digital Transformation has to be rooted in clear KPIs to prove ROI. As you evolve your ServiceNow Roadmap, it’s okay to start by focusing on basic metrics like SLAs. Ultimately, your business and executives need to adopt an enterprise approach to evaluating ServiceNow results, and tie metrics to broader business goals, such as driving demand, retaining talent, and driving operational improvements.

C-Suite KPIs focus on balanced scorecard metrics

When looking at the critical indicators of ServiceNow performance tracked by executives, respondents didn’t report significant change – either year over year, or when compared to the broader survey audience. Topping executive’s performance analysis:

  • Time to Resolve an Incident or Request – 76 percent
  • Adherence to Service Level Agreement’s (SLA’s) – 67 percent
  • Cost Savings – 62 percent
  • Employee Experience – 53 percent
  • Customer Satisfaction – 51 percent

It is interesting to note how much KPI tracking percentages for executives have increased across the board in just one year. This growing attention to all tracking indices underscores the rising importance of ServiceNow’s strategic value in the C-Suite.

Similarly, the top four critical KPIs, all earn similar scores, with over 50 percent tracking a

wide range of performance metrics. This equal measure approach to assessing ServiceNow success is indicative that Execs are developing a balanced scorecard approach to Platform success – an assessment strategy that considers all of the key business stakeholders.

When looking at this data through the eyes of the C-Suite, remember that they will consider “stakeholders” not just as departments like IT, HR, or Finance, but also looking to where their organizations are running businesses within the business. This enterprise thinking turns each of these KPI’s into top-line purposes.

For example, Time to Resolve an Incident or Request is not (only) a measure of resolving employee or customers issues, but a measure of their Operational structure as a whole; Employee Experience or Satisfaction is a measure of the organization’s ability to get the most out of their most critical asset, and Customer Satisfaction is a measure of their ability to drive demand.

To explore ServiceNow KPIs further (plus a look at platform challenges, successes, results, and next steps) download the full 2020 ServiceNow Insight and Vision Report.

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