Welcome to ‘Build a performance management
approach for ServiceNow,’ part of our Best Practices series. In this video you’ll learn how ServiceNow
defines performance management. You’ll learn the best practice steps for
defining and communicating key performance indicators, or KPIs,
and you’ll leave this video armed with a list of actions you should take to get started. Let’s start with some definitions. Performance management is an approach that
uses metrics to inform strategic decisions, guide day-to-day work, and track progress
towards defined goals. Metrics go beyond dashboards: First, they provide data that helps teams
prioritize work and helps leaders make critical decisions,
Second, they get stakeholders ‘on the same page’ about organizational goals, and finally,
they track progress towards goals, and surface opportunities to improve ServiceNow value,
or course-correct as needed. To do this, metrics must answer two questions: First, how is the organization performing
against defined goals? Here, metrics track progress towards an outcome. Second, what factors are affecting progress
towards your goals and are there any risks? Here, metrics can act as leading indicators
to give you confidence that you’re on track, or to surface obstacles that need to be addressed. Let’s look at a customer service example:
This organization wants to resolve customer service issues fast. They’ve identified three KPIs to let them
know if they’re realizing their business outcome: reduced average case-handling time,
improved customer and agent satisfaction, and improved adoption of self-service, each
of which can be measured. They want to know not only when they meet
the goal, but whether they’re on track. So, they identify three leading indicators
for reducing average case-handling time: the percentage of cases that are closed on first
contact, the percentage of repeat cases, and the percentage of cases that remain unresolved
each week. By tracking these, they can understand if
the organization must take additional actions to achieve its goal of reducing average case-handling
time. A performance management strategy for ServiceNow
based on metrics requires three steps: First, understand your organization’s context. You need to know where you want to go before
you measure your performance in getting there. You should baseline your approach based on
your specific organizational goals and needs, rather than define metrics in a vacuum. When you do this, you can define metrics to
measure the performance of ServiceNow in your organization. This includes measuring towards business outcomes,
platform and application adoption, and overall platform health. Then, you can build performance dashboards
to communicate your progress effectively to key stakeholders. Performance Analytics has out-of-the-box dashboards
optimized for ServiceNow workflows and includes the most common KPIs for measuring your processes
so that you don’t have to start from scratch. We offer detailed guidance and leading practices
to help you implement each step. Download the Performance Management resources
on the Customer Success Center for these details. There are three key insights we want you to
remember from this video: First – Performance management is about
defining and communicating the right KPIs, tied to your business outcomes. This helps you understand your progress towards
your goals and where there might be risks. Second – your KPIs should measure your expected
business outcomes for ServiceNow, adoption among teams responsible for those outcomes,
and Now Platform health. This approach helps you increase the value
you get from ServiceNow. Third – You should build dashboards, using
Performance Analytics, to help you communicate effectively, inform decisions, and prioritize
work. So, what should you do next? First, take time to review the resources we
have on the Customer Success Center. These materials will provide details and insights
from experts on how to develop performance management. Second, you can find materials on the Customer
Success Center, Now Learning, and Now Community to help you get started with Performance Analytics. Remember that Performance Analytics provides
out-of-the-box dashboards and KPIs that can jumpstart your performance management program. For more information or advice, contact your
ServiceNow team. Thank you for watching.