Measuring Value from Your ServiceNow (FSM) Implementation

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Why Value Measurement Matters

Every organization wants to maximize the value of its ServiceNow investment especially as a ServiceNow Field Service Management (FSM) . To do this effectively, businesses must regularly track how well their implementation is performing against key metrics and strategic goals. Understanding the current state of value realization enables teams to make informed decisions, adjust ongoing projects, and prioritize future implementations that drive meaningful impact.

However, measuring value can be challenging. Organizations need real-time insights into their progress toward operational goals and the monetary benefits realized. This guide outlines a structured approach to measuring and communicating the value derived from ServiceNow, ensuring stakeholders stay aligned and informed.

A Step-by-Step Approach to Measuring Value

1. Define Business Outcomes

To measure value effectively, start by identifying the expected business outcomes from your ServiceNow implementation. These outcomes should align with stakeholder expectations and the original business case for adopting ServiceNow.

Key Actions:

• Review the business case and validate expected outcomes with executives and functional leaders.
• Consider any changes in enterprise or functional objectives that may have occurred since implementation.
• Select outcomes that are directly impacted by the current ServiceNow implementation phase.

Best Practice: Avoid tracking outcomes that your current implementation cannot yet deliver. If needed, collaborate with your account team to align the implementation roadmap with desired business objectives.

2. Establish Key Performance Indicators (KPIs)

Once business outcomes are defined, establish clear and measurable KPIs to track progress. These KPIs provide actionable insights and ensure consistency across different stakeholder groups.

Key Actions:

• Identify at least one KPI for each business outcome.
• Use industry benchmarks and best practices for defining relevant KPIs.
• Ensure KPIs are specific, measurable, and trackable within ServiceNow Performance Analytics.
• Define a baseline (e.g., pre-implementation or last year’s data) to compare future performance.

3. Quantify Monetary Value

To translate performance improvements into tangible business value, define formulas for calculating cost savings and operational efficiencies.

Key Actions:

• Develop value equations based on KPI improvements.
• Identify relevant data elements, such as cost per outage hour or IT service agent wages.
• Assume constant values for elements that remain unchanged over time (e.g., employee hourly wages).
• Validate calculations with your finance team to ensure accuracy.

Example Value Calculation:

To measure the value of reduced outages, an organization might use:

$$\text{Cost Savings}=\text{Change in outage volume}\times \text{Avg. business cost per hour of outage}\times \text{Avg. outage duration}$$

4. Collect Data and Calculate Value

Gathering the right data is essential for calculating the realized value. This requires tracking historical trends and comparing them to the current state.

Key Actions:

• Use ServiceNow Performance Analytics to track KPI trends.
• Collaborate with stakeholders to estimate values for data elements not directly available in ServiceNow.
• Leverage external industry benchmarks when needed.
• Calculate the monetary value realized based on defined formulas.

Best Practice: Keep calculations simple and directionally accurate—overcomplicating value assessments may lead to unnecessary delays in decision-making.

5. Communicate Value to Stakeholders

Tracking value is only useful if stakeholders are aware of the impact. Establish a communication plan that conveys the value realized and informs future decision-making.

Key Actions:

• Create a custom dashboard to track and share KPI progress.
• Utilize ServiceNow’s Value Realization Dashboard to visualize the impact of initiatives.
• Share value insights with executives, process owners, and frontline teams.
• Conduct quarterly reviews to assess progress and refine KPI goals.

Discussion Points for Strategic Value Conversations:

• How can we enhance our current implementation to drive further improvements?
• What additional investments should we consider to support business growth?
• How can we reallocate capacity to optimize efficiency and innovation?

Turning Value Insights into Action

Measuring ServiceNow’s impact is not just about proving ROI—it’s about using data-driven insights to optimize processes, enhance user experience, and drive business success. By following this structured approach, organizations can:

• Align ServiceNow investments with business priorities.
• Demonstrate measurable improvements in efficiency and cost savings.
• Foster strategic conversations that drive continuous innovation.

For a deeper dive into best practices, explore ServiceNow’s   or consult with a value consultant to maximize the full potential of your investment.