Value calculation for Impact Value Reports
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Summary of Value calculation for Impact Value Reports
Value calculation for Impact Value Reports enables ServiceNow customers to quantify measurable business impact by translating operational performance metrics into monetary terms. This approach links high-level business objectives to specific outcomes tracked through defined metrics, which include baseline (reference), goal, and current quarterly values. It helps organizations track progress toward business goals with clear, metric-driven insights.
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Tracking Progress and Operational Performance
Each business objective is connected to measurable outcomes, which are monitored via metrics that track quarterly progress. For example, in automation goals, a key metric might be the reduction in incident volume handled by a service delivery team, reflecting a decrease in manual workload and enabling teams to focus on higher-value activities.
Metrics include:
- Reference Value: Baseline metric value from a defined quarter.
- Goal: Target improvement relative to the baseline.
- Current Value: Most recent metric value showing progress.
Quarterly comparisons of current values against the baseline inform the value impact calculation. Customers can collaborate with their squads to review and adjust inputs to ensure alignment with their operational context.
Business Value Reporting
Business value reflects the monetary impact of objectives and outcomes, delivered through Value Reports available to Advanced and Total Impact customers. These reports include:
- Actuals: Operational performance data for the selected reporting period.
- Comparison: Baseline performance data for the comparison period.
- Actual Date Range: Typically an annual period used for value calculation.
- Comparison Date Range: Baseline annual period for performance comparison.
At the end of the reporting period, customers review performance data with their Impact squads to calculate the dollar value impact. Input values can be adjusted collaboratively to better reflect operational realities. Negative values may occur if current performance worsens relative to baseline, prompting interpretation and corrective actions by the squad to help achieve business objectives.
You can use value calculation for measurable business impact and track value using metrics.
Value calculation translates operational performance into measurable business impact typically in monetary terms. Each business objective is linked to specific outcomes tracked through defined metrics. These metrics include a baseline (reference), goal, and current quarterly values.
Track your progress
Business objectives are your high-level business goals. To help measure your achievement toward that goal, each objective is connected to several measurable outcomes. The outcomes are in turn tied to metrics that record your progress from quarter to quarter.
Measuring Progress toward Automation Goals
If your business objective is to increase automation within your technology service operations, one way to track progress is through a lagging indicator that reflects the impact of automation efforts. An effective outcome to measure is the reduction in incident volume handled by the service delivery team. The corresponding metric is the number of incidents closed over a defined period. As automation reduces the overall number of incidents, the service delivery team experiences a decrease in manual workload—freeing up time for higher-value tasks.
Operational performance
- Reference value
- The actual recorded value of a specific metric during the reference (baseline) quarter.
- Goal
- The target improvement is set relative to the reference value.
- Current
- The most recent value of the metric for the current reporting quarter, indicating progress toward the goal.
Each quarter, the current metric value is compared against the reference (baseline) value. This comparison is used as an input in the calculation that determines the overall value impact. The calculation may also include additional inputs. You can collaborate with your squad to review and adjust these inputs as needed to confirm that they accurately reflect your operational context.
Outcome of reducing incident volume worked and metric of number of incidents closed
| Date | Number of incidents (per quarter) | Compare to reference value |
|---|---|---|
| Reference value | 100,000 | |
| Goal | 80,000 | 20,000 |
| Q1 2024 | 110000 | (10000) |
| Q2 2024 | 90000 | 10000 |
| Q3 2024 | 80000 | 20000 |
| Q4 2024 | 75000 | 25000 |
Business value
- Actuals
- Operational performance data for the metric within the selected date range.
- Comparison
- Operational performance data for the metric within the defined comparison date range.
- Actual Date Range
- The annual period (typically four quarters) chosen for calculating business value.
- Comparison range
- The annual period (typically four quarters) used to obtain baseline operational performance data for business value calculation.
At the end of the year (or your chosen reporting period), your Impact squad reviews the operational performance results. These performance metrics are used as inputs in the calculation, combined with other factors, to generate the corresponding dollar value impact. You can collaborate with your squad to adjust these input values to better reflect your current operational context.
Occasionally, a negative value may be reported if the current performance deviates unfavorably from the baseline. In such cases, your squad assists in interpreting the results and identifying actions to help you achieve your business objectives.