|By Lori MacVittie||
|August 6, 2009 03:15 PM EDT||
We often talk in abstract terms about the affects of application performance on productivity. It seems to make sense that if an application is performing poorly – or unavailable – that it will certainly affect the productivity of those who rely upon that application. But it’s hard enough to justify the investment in application acceleration or optimization without being able to demonstrate a real impact on the organization. And right now justification is more of an issue than it’s ever been.
So let’s take the example of a call center to begin with. Could be customer service supporting customers/users, or a help desk supporting internal users, or even a phone-based order-entry department. Any “call center” that relies on a combination of the telephone and an application to support its processes is sensitive to delays in delivering and outages of applications.
This excellent article from Call Center Magazine details some of the essential Call Center KPIs, the metrics upon which call center efficiency and thus productivity is measured.
The best measure of labor efficiency is agent utilization. Because labor costs represent the overwhelming majority of call center expenses, if agent utilization is high, the cost per call will inevitably be low. Conversely, when agent utilization is low, labor costs, and hence cost per call, will be high.
That all makes sense, but what we want – and need – is a formula for determining “agent utilization.”
The formula for determining agent utilization is somewhat complicated. It factors in the length of the work day, break times, vacation and sick time, training time and a number of other factors. But there is an easy way to approximate agent utilization without going to all this trouble:
Let's say, for example that the agents in a particular call center handle an average of 1,250 calls per month at an average handle time of 5 minutes. Additionally, these agents work an average of 21 days per month, and their work day is 7.5 hours after subtracting lunch and break times. The simplified utilization formula above would work out to the following:
Once again, this is not a perfect measure of agent utilization, but it is quick and easy, and gets you within 5% of the true agent utilization figure.
Okay, again that makes sense. And now that we’ve got a formula from which to work we can look at the impact of application performance – both negative and positive – on “agent utilization.”
HIGHER UTILIZATION NOT ALWAYS DESIRABLE
You’ve heard it, I’m sure. The plaintive “my computer is slow today, please hang on a moment…” coming from the other end of the phone is a dead-ringer for “application performance has degraded.” Those of us intimately familiar with data centers and application delivery understand it isn’t really the “computer” that’s slow, but the application – and likely the underlying application delivery network responsible for ensuring things are going smoothly.
The reason the explanation is plaintive is because call center employees of every kind know exactly how they’re rated and measured and understand that a “slow computer” necessarily adds time to their average call handle time. And the higher the average call handle time, the lower their utilization, which brings down the overall efficiency of the call center. But just how much does application performance affect average call handle time?
Let’s assume that the number of “screens” or “pages” a call center handler has to navigate during a call to retrieve relevant information is five. If the average handle time is five minutes, that’s one minute per page. If application performance problems increase the average time per page to one minute and twelve seconds, that’d bring our total time per call up to six minutes.
1250 x 6 / 9450 = 79.3%
Hey, that’s actually better, isn’t it? Higher utilization of agents means lower costs per call, which certainly makes it appear as though we ought to introduce some latency into the network to make the numbers look better. There are a couple of reasons why this is not true. First and foremost is the effect of high utilization on people. As is pointed out by the aforementioned article:
Whenever utilization numbers approach 80% - 90%, that call center will see relatively high agent turnover rates because they are pushing the agents too hard.
Turnover, of course, is bad because it incurs costs in terms of employee acquisition and training, during which time the efficiency of the call center is reduced. There is also the potential for a cascading effect from turnover in which the bulk of calls are placed upon the shoulders of experienced call center workers which increases their utilization and leads to even higher turnover rates. Like a snowball, the effect of turnover on a call center is quickly cumulative.
Secondly, increasing call handle time also adversely affects the total number of calls a handler can deal with in any given time period. As handle time per call increases, total number of calls per month decreases, which actually changes the equation. There are 9450 minutes in a month, which means at 5 minutes per call there is a maximum of 1890 calls that can be handled. At 6 minutes per call that decreases to 1575. That’s a 17% decrease in total for every minute the average call handle time increases. No call center handles 100% of the calls it theoretically could, but the impact on the number of calls possible will still be affected – decreased – by an increase in the average call handle time due to poor application performance.
GENERALIZING THE FORMULA
What this ultimately means is that worsening application performance reduces the efficiency of call centers by decreasing the number of calls it can handle. That’s productivity in a call center. Applying the same theory to other applications should yield unsurprisingly similar results: degradation of application performance means degrading productivity which means less work is getting done. Any role within the organization that relies upon an application can be essentially measured in terms of the number of “processes” that can be completed in a given time interval. Using that figure it then becomes a matter of decomposing the process into steps (pages, screens, etc…) and determining how much time is spent per step. Application performance affects the whole, but is especially detrimental to individual steps in a process as lengthening one draws out the entire process and thus reduces the total number of “processes” that can be completed.
So we can generalize into a formula that is:
((total # of processes per month) * (average number of minutes to complete a process)) / 9450
where 9450 is the total number of minutes available per month. Adjust as necessary.
To determine the impact of degrading application performance, lengthen the process complete time in minutes appropriately while simultaneously adjusting the total number of processes that can be carried out in a month. Try not to exceed a 70% utilization rate as just as with call center employees, burnout from too many back-to-back processes can result in a higher turnover rate.
THE IMPACT OF APPLICATION DELIVERY
Finally, we can examine whether or not application delivery can improve the productivity of those who rely on the applications you are charged with delivering. To determine the impact of application delivery this time shorten the process complete time in minutes appropriately while simultaneously adjusting the total number of processes that can be handled per month. Again, try not to exceed a 70% utilization rate.
Alternatively, you could use the base formula to determine what kind of improvements in application performance are necessary in order to increase productivity or, in some cases, maintain it. Many folks have experienced an “upgrade” in an enterprise application that causes productivity to plummet because the newer system my have more bells and whistles, but it’s slower for some reason. Basically you need to determine the number of processes you need to handle per month and the utilization rate you’re trying to achieve and use the following formula to determine exactly how much time each process can take before you miss that mark:
(9450 x Utilization Rate ) / # of processes = process time
This allows you to work backward and understand how much time any given process can take before it starts to adversely affect productivity. You’ll need to understand how much of the process time should be allotted to mundane steps in the process, i.e. taking information from customers, entering the data, etc…, and factor that out to determine how much time can be spent traversing the network and in application execution time. Given that number you can then figure out what kind of application delivery solutions will be able to help you meet that target number and ensure that IT is not a productivity bottleneck. Whether it’s acceleration or optimization, or scaling out to meet higher capacity you are likely to find what you need to meet your piece of the productivity puzzle in an application delivery solution.
This also means that you can be confident that “the computer was slow” is not a valid excuse when productivity metrics are missed, and probably more importantly, you can prove it.
Related blogs & articles:
- Beware the Availability Rat Hole in the Cloud
- Cloud outages don’t bother Stanley
- WAN Optimization is not Application Acceleration
- Amazing Application Acceleration: Simultaneously improve productivity, efficiency, and performance
- ROI Justification(s) for Application Delivery Controllers
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