Process Area Results

Incident Management Reduced Incident Volume

Problem Management Reduced Closed Problems
Service Level Management Reduced Unattained Service Level Targets
Availability Management Fewer IT Service Outages
Service Asset and Configuration Management Reduced Incidents caused by Uncontrolled CIs
Service Support and Service Delivery Less Unplanned Work for IT Staf
Change Management Less Unsuccessful / Backed-out Changes
Incident Management / Service Level ManagementDefined Services / Service Catalog
Financial Management Charging (even notational)
Capacity Management Hardware / Software Savings
Glossary Definition of Terms used in the Calculator

INSTRUCTIONS: This workbook was created as a tool to assist organizations looking to justify a best practice
improvement program. Each worksheet has a sample ROI calculation based on actual ITSM Academy client successes.
The hyperlinks above will take you to the calculation worksheets. On each sheet, you will find data boxes (the yellow
boxes) where you can input your company's information to produce ROI results.

Each sheet is protected, but there is not a password. You can use the tool “as is” to calculate numbers for the scenarios
listed above. If you want to use the intelligence provided to create a similar calculation, we recommend that you save a
full copy, password protected, and then do a SaveAs to create a working document for your changes. In grey text, we
have made some suggestions for additional ROI calculators you may want to create. In order to assist other IT
practitioner organizations in justifying a program to improve operational efectiveness and customer satisfaction, we
request that you share any additional calculations created from this workbook. All information sources will be kept
confidential.

Questions?: Contact Lisa Schwartz -

lschwartz@itsmacademy.com - 954.491.3442 x104
© ITSM Academy 2004-2011 V3R1

Email Questions / New Calculations to lschwartz@itsmacademy.com

 Sample: Reduced Incident Volume
$ 20 Average $ per Incident*
1,000 Average Incidents per week
### Incident cost per week Savings
Weekly Annual
Goal: Reduce By 10% $ 2,000 $104,005
20% $ 4,000 $208,010
*Source: Help Desk Institute 30% $ 6,000 $312,016

Reduced Incident Volume

$ 45 Average $ per Incident*
1,000 Average Incidents per week
### Incident cost per week Savings
Weekly Annual
Goal: Reduce By 10% $ 4,500 $234,005
15% $ 6,750 $351,008
*Source: Help Desk Institute 20% $ 9,000 $468,010

Input Data

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 Sample: Reduced Open Problems
$ 1,000 Average $ per Open Problem
50 Average Open Problems per Month
$ 50,000 Open Problem Cost per Month Savings
Monthly Annual
Goal: Reduce By 10% $ 5,000 $ 60,001
20% $10,000 $120,002
30% $15,000 $180,004

Reduced Open Problems

$ 1,500 Average $ per Open Problem
100 Average Open Problems per Month
### Open Problem Cost per Month Savings
Monthly Annual
Goal: Reduce By 15% $22,500 $270,002
25% $37,500 $450,003
35% $52,500 $630,004

Input Data

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 Sample: Reduced Unattained Service Level Targets
$ 3,000 Average Monthly $ per Unattained Service Level Target
5 #of Service Level Targets
$ 15,000 Cost of Unattained Service Level Targets
Savings-Single Service
Monthly Annual
Goal: Reduce By 10% $ 1,500 $ 18,001
20% $ 3,000 $ 36,002
30% $ 4,500 $ 54,004

Savings- All Services

Monthly Annual
Number of Services offered 22 $ 33,002 $ 396,026
$ 66,004 $ 792,053
$ 99,007 ###

Reduced Unattained Service Level Targets

$ 1,000 Average Monthly $ per Unattained Service Level Target
10 #of Service Level Targets
$ 10,000 Cost of Unattained Service Level Targets
Savings
Monthly Annual
Goal: Reduce By 1% $ 100 $ 1,200
5% $ 500 $ 6,001
10% $ 1,000 $ 12,001

Savings- All Services

Monthly Annual
Number of Service Offered 17 $ 1,700 $ 20,402

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 $ 8,501 $ 102,010
$ 17,002 $ 204,020

Input Data

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 Sample: Fewer IT Service Outages by Service (Employee Productivity)
3 Outages per month Outage Cost - Single Service Savings - Single Service
20 Average Outage in minutes Hour ### $ 3,606 Hour ### $ 721
150 Average users impacted Month ### $ 3,606 Month $ 721
$50,000 Average user annual salary Annual $ 43,269 Annual $ 8,654
$ 24.04 Average user hourly wage
Goal: Reduce By 20% Outage Cost - All Service Savings - All Services
Hour ### $ 79,327 Hour ### $ 15,866
Number of Services offered 22 Month $ 79,327 Month $ 15,866
Annual $ 951,923 Annual $ 190,385

Fewer IT Service Outages by Service (Employee Productivity)

5 Outages per month Outage Cost - Single Service Savings - Single Service
45 Average Outage in minutes Hour ### $ 346 Hour ### $ 28
12 Average users impacted Month ### $ 1,298 Month $ 104
$60,000 Average user annual salary Annual $ 15,577 Annual $ 1,246
$ 28.85 Average user hourly wage
Goal: Reduce By 8% Outage Cost - All Service Savings - All Services
Hour ### $ 5,192 Hour ### $ 415
Number of Services offered 15 Month $ 19,471 Month $ 1,558
Annual $ 233,654 Annual $ 18,692

Input Data

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 Sample: Reduced Uncontrolled CIs
500 # of Uncontrolled CIs
10 Average # of Incidents per Uncontrolled CI
$ 35 Average Cost per Incident*
$175,000 Cost of Uncontrolled CIs Savings
Annual
Goal: Reduce By 10% $ 910,005
20% ###
*Source: Help Desk Institute 30% ###

Reduced Uncontrolled CIs

300 # of Uncontrolled CIs
5 Average # of Incidents per Uncontrolled CI
$ 25 Average Cost per Incident
$ 37,500 Cost of Uncontrolled CIs Savings
Annual
Goal: Reduce By 10% $ 195,005
15% $ 292,508
20% $ 390,010

Input Data

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 Sample: Less Unplanned IT Work Level 3 Staff Total Savings of Reducing Unplanned Work Input Data
7 Level 3 staf (As Determined Below)

$ 70,000 Average L3 annual salary 85 Staf

$ 5,833 Average L3 monthly salary Savings
$ 40,833 Monthly L3 salary (for team) Month $ 26,903
(ex. .20) 20% Percentage of unplanned L3 work Annual $ 322,834
$ 8,167 Monthly cost of unplanned work

20% Goal: Reduce By Savings

Month $ 1,634
Annual $ 19,603

Less Unplanned IT Work Level 1 Staff Less Unplanned IT Work Level 2 Staff Less Unplanned IT Work Level 3 Staff
50 Level 1 staf 28 Level 2 staf 7 Level 3 staf
$ 42,500 Average L1 annual salary $ 54,000 Average L2 annual salary $ 70,000 Average L3 annual salary
$ 3,542 Average L1 monthly salary $ 4,500 Average L2 monthly salary $ 5,833 Average L3 monthly salary
$177,083 Monthly L1 salary (for team) $126,000 Monthly L2 salary (for team) $ 40,833 Monthly L3 salary (for team)
(ex. .20) 20% Percentage of unplanned L1 work 20% Percentage of unplanned L2 work 20% Percentage of unplanned L3 work
$ 35,417 Monthly cost of unplanned work $ 25,200 Monthly cost of unplanned work $ 8,167 Monthly cost of unplanned work

50% Goal: Reduce By Savings 30% Goal: Reduce By Savings 20% Goal: Reduce By Savings
Month $ 17,709 Month $ 7,560 Month $ 1,634
Annual $212,507 Annual $ 90,724 Annual $19,603

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Process Area Term

Incident Management Incident

Problem Management Problem

Service Level Management Unattained Service Level Target

Availability Management Outage

Service Asset and Configuration Management Uncontrolled Configuraiton Item (CI)

Service Support and Service Delivery Unplanned Work

Change Management
Incident Management / Service Level Management
Financial Management
Capacity Management
Glossary
Results
An unplanned event that causes, or may, a disruption or
interruption to service
The unknown cause of one or more incidents, events,
errors, failures, outages, etc.
A measureable target contained in a Service Level
Agreement that has not been met for various reasons
Any unplanned situation (downtime) that efects the
availability, reliability, maintainability or serviciability of
a service
Service Assets used to provision, deliver or support
services that do not currently fall under the control of
Service Asset and Configuration Management
Activities that fall outside the defined scope of process
and procedures