LEAP prioritization logic and cost savings calculation
Summarize
Summary of LEAP prioritization logic and cost savings calculation
LEAP leverages built-in prioritization logic to identify and rank automation opportunities based on their business impact and potential cost and time savings. This helps ServiceNow customers focus automation efforts on the highest-value tasks, improving efficiency and resource allocation. Customers are advised to validate LEAP's calculated values in a non-production environment before deploying them in production.
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Automation Prioritization Logic
LEAP groups related incidents into automation opportunities and assigns priority using two main factors:
- Business Impact: Calculated by scoring each ticket on business criticality, major incident status, and impact level. These factors are weighted and averaged to produce a Business Impact Score. Automation opportunities are then categorized into high, medium, or low impact based on this score.
- Projected Cost/Time Savings: Estimated using historical ticket data including incident frequency, average manual work notes count (AWNC), and overhead factors (OHF) that vary by incident priority. LEAP calculates projected savings in cost and time by multiplying these inputs with predefined cost and time values per work note entry.
Automation opportunities are sorted by their projected savings and assigned an overall priority using a matrix that combines business impact and projected savings levels (e.g., Very High, High, Medium, Low, Very Low).
Configurable Parameters
Several parameters, such as overhead factors per incident priority, cost per work note, and time per work note entry, can be adjusted in the LEAP settings page. Changes require deactivating and reactivating the LEAP installer skill and rerunning calculations before activation to ensure accurate prioritization.
Tracking Actual Savings
After implementing automation, LEAP tracks actual cost and time savings through the LEAP Value Dashboard. It calculates saved work notes by comparing pre- and post-automation manual entries and applies overhead factors and cost/time per entry values to quantify real savings. This tracking enables continuous measurement of automation impact and supports informed decision-making.
Practical Example
For instance, a cluster with 20 average manual work notes (AWNC) mapped to a P2 priority incident with 6 manual entries after automation (AWN) results in saved work notes (SWN) of 14. Applying the overhead factor (1.4) yields an adjusted savings of approximately 20 AWN. Multiplying by the cost per work note ($20), the actual cost savings is $400, demonstrating how LEAP’s calculations translate into actionable financial benefits.
LEAP uses built-in prioritization logic to identify the highest-impact automation opportunities. This logic helps you focus on the most valuable automation tasks. The calculations provide an estimate of potential cost and time savings. It's best to validate these values in a non-production environment before implementing them in production.
- Business impact
- Projected cost/time savings
The priority for an automation opportunity is determined using the following chart.
The key factors are evaluated for each group of related incidents, called automation opportunities, and the results help teams focus on high-value areas.
Business impact
- Business criticality
- Major incident status
- Impact level
- Most Critical = 100%
- Somewhat Critical = 75%
- Less Critical = 50%
- Not Critical = 25%
| Key | Default value | Description |
|---|---|---|
| ohf_p4 | 0.8 | Overhead factor for P4 records. |
| ohf_p5 | 0.4 | Overhead factor for P5 records. |
| ohf_p1 | 1.8 | Overhead factor for P1 records. |
| ohf_p2 | 1.4 | Overhead factor for P2 records. |
| cost_per_entry | 20 | Cost in dollars associated with adding a work note entry to a record. |
| ohf_p3 | 1.1 | Overhead factor for P3 records. |
| time_per_entry | 0.5 | Time in hours associated with adding a work note entry to a record. |
| first_run_group_limit | 0 | Total number of groups for which resolution steps are generated in the initial run. |
| gaf_mapping_min_threshold | 0.2 | Minimum ratio of incidents pointing to an active group that is considered for remapping after clustering. |
- You can modify the values in the LEAP settings page. However, the calculations will differ when you change the values.
- The values in the LEAP settings page should be modified before activating LEAP.
- If you modify the values in the LEAP settings page, you need to rerun the calculation. For this, you must deactivate and reactivate the LEAP installer skill.
Ticket Score = (Criticality × 0.8 + Major Incident × 0.2 + Impact × 0.4) ÷ 3The average of all ticket scores in the group becomes the Business Impact Score. Based on this score, automation opportunities are labeled as high impact (the top 33%) , medium impact (next 33%), and low impact (remaining 33%).
Projected cost or time savings impact
LEAP estimates how much time and cost can be saved by automating a group of incidents with historical ticket data.
- Frequency of Incidents (FOI) : Average number of similar incidents per month
- Average Manual Work Notes Count (AWNC)
- Overhead Factor (OHF) : varies by incident priority based on the priorities table
Projected Cost Savings = ∑ (FOI × OHF) × AWNC × Cost per Work NoteProjected Time Savings = ∑ (FOI × OHF) × AWNC × Agent Time per Entry
Each ticket’s projected savings is calculated. The average for the group becomes the Projected Cost/Time Savings Score, which is also categorized as High, Medium, or Low. The automation opportunities are sorted in descending order based on the projected cost or time savings.
Determining overall priority
| Business impact | Projected cost/time savings | Automation priority |
|---|---|---|
| High | High | Very High |
| Medium | High | High |
| High | Medium | High |
| Medium | Medium | Medium |
| Medium | Low | Low |
| Low | Medium | Low |
| Low | Low | Very Low |
These prioritized automation opportunities are displayed on the LEAP home page.
Tracking the actual cost and time savings
After automation is implemented, LEAP tracks actual cost and time savings and displays them on the LEAP Value Dashboard, helping you measure impact and make decisions.
- Additional Work Notes (AWN) : Manual entries after playbook execution
- Overhead Factor (OHF) by Priority : For example, P1 = 1.8x
Saved Work Notes (SWNs) = AWNC – AWNAWN = SWN × OHFActual Cost Savings = AWN × Cost per Work NoteActual Time Savings = AWN × Agent Time per Entry
Example projected cost and time savings calculations
A cluster has 20 AWNC and is mapped to a P2 incident with 6 AWN. The cost per work note is $20, and the agent time per entry is 0.5 hours.
According to the formulas, the SWN count is (20
- 6) = 14. According to the properties tables, the OHF = 1.4.
SWN x OHF = AWN so 14 x 1.4 = 19.6
This value can be rounded off to 20 AWN. Each AWN entry represents $20 of savings.
The actual cost savings post automation = AWN x Cost per Work Note =
20 x 20 = $400.
So, if you use automation, then the projected cost savings can be up to $400. Thus, the calculation provides actionable insights for ongoing process improvement and resource allocation.