ServiceNow, Inc. (NOW) Earnings Call Transcript & Summary

Hi, everyone. My name is Newsha Sharif. I'm here joined today with Andy Jordan and Kevin Mattingly, and we'll be talking about how we can transform your digital operations with strategic portfolio management. But before I hand it off to our speakers, I'd like to talk about some housekeeping items that was previously mentioned on the video. But we will be recording this session, and it will be available on demand later. Also, there are Q&A in this panel. Please enter your questions and we'll answering them live at the end. And we will have multiple assets as part of our resources in case you'd like to learn more. Now I will hand it off to other speakers in this session to talk -- to introduce themselves, and we'll take it up from there.

Thanks, Newsha. My name is Andy Jordan. I am the President of Roffensian Consulting. I will be speaking to you about some of the trends that I'm seeing in strategic portfolio management. And I will be the first [indiscernible] and then we will be followed by Kevin. So Kevin, I'll let you introduce yourself.

Good morning. My name is Kevin Mattingly. I am with the Cleveland Clinic. I'm a manager within our IT, Information Technology division, project management office, and I'm also a process owner for ServiceNow strategic portfolio management.

Perfect. And again, Newsha Sharif. I'm a Senior Product Marketing Manager at ServiceNow, and I focus on Strategic Portfolio Management. So on the agenda today, we have -- we will discuss what are the trends in the market and how we are facing a lot of change in our market. And then we'll hand it off to Andy to, again, unfold our presentation with what are these trends. And then Kevin will talk about their journey of Cleveland Clinic, how they use our strategic portfolio management to deliver better value to their customers. And at the end, we'll review some outcomes and lessons learned. So now we'll go to what we see as trends. Well, we see that we are all facing a lot of pressure in terms of how we want to deliver value faster to our customers. We are in times of change. And whether our customers are internal stakeholders or external organizations that you're delivering products, services or programs, we are facing a lot of change. This pressure for change is not new. We've been facing that, and organizations in order to be competitive, they had to change all the time. But what has changed is the sheer scale and pace of innovation that they need to keep up. Actually, last year, Accenture did a study and which showed 88% of executives think that their customers' needs are changing faster than how they could deliver value to. So now that we have our industry expert, Andy Jordan, on the call. Can we know what he sees in the market? Is it the same? Is it -- what are you seeing if you could share?

Thanks, Newsha. Yes. So I'm seeing that a lot of organizations are looking to be more strategic in how the management addresses this. Organizations have been in strategic planning for as long as there have been organizations. But if we're honest, it hasn't always been that strategic. There's the idea that we set the goals and objectives, and we decide what the budgets are going to be to deliver projects that achieve those goals and objectives. But after that, the whole planning process has been led to individual departments and business areas to try and sort of figure out, well, what kind of work do they want to do that might or might not align well with the objectives of the organization. And then the execution piece has been very piecemeal. And when it comes to benefit realization, especially if we're talking about benefits that aren't purely financial, it's been really tough for them to actually figure out whether they're actually achieving what they want to achieve. So organizations are faced with the situation where they're doing a lot of work. They're using a heck of a lot of resources, time and money and people effort. But they're not actually sure what they're achieving what their customers expect them to achieve. And when customers' expectations are getting faster and faster and technology is enabling things to change more and more, more and more quickly, then we can't have that. We have to change how things are happening. So what I'm seeing now is a number of shifts, partly due to technology, partly due to business processes, but in large part about mindset. In particular, we're looking now to have a common picture, single approach to all of the decision making that's happening. We're driving everything from the top. No more are we saying, "Okay. We're going to spend $100 million to try and improve revenue and $200 million of time to reduce costs. Go figure out what work you want to do, and we'll give you some of that money." Instead of that approach, what's happening is we're now saying, "You know what, everything is going to come into one place." All demand, all of their priorities are all going to be managed centrally and driven by strategy. All of the resources that we have to work on that, it's going to be managed in one place driven from the top layer. At the same time, they're recognizing that we can't centralize the actual decision-making. We can't say every single project is going to have every single decision made by lesion. So what we're doing now is we're empowering teams to make decisions, ask for forgiveness instead of permission, if you like. And we were alone to operate in new ways. ServiceNow is doing a lot of work on hybrid ways of work. And we're seeing this survey that's going to come out to that talks a lot about how popular hybrid ways of working are becoming. Not just agile, not just waterfalls, but combining those different elements. If that's what works with a particular project, that's what organizations are allowing to happen. They're also looking at new structures for delivering that work. Not everything is a project. Not everything is an ethnic. Sometimes we have product. Sometimes we have a new ways of thinking about stuff. Maybe we just don't even know what to call it. But if it works and it delivers the benefits, then that's what organizations are embracing. That's what they're empowering their teams to do. All of that can only happen when you've got the right data that's coming from every part of the business. You need an integrated platform. An integrated, dynamic, cost-enterprise platform for every single piece of technology. You can't have planning in one system, agile in another system, waterfalls in another system. You've got to have always to bring all of those pieces together so that all the data is available to everybody. But not as data, as contextualized information, you need a reporting engineer and ability to analyze that data so that it presents to each stakeholder in a way that makes sense to them. Portfolio managers can make decisions that are right for the portfolio. Resource owners can make sure the right people are working on the right things at the right time. Finance managers can control the cash flow and the expenditure. All of that needs to happen from the same days that presented in a way that actually generates inside better decisions in less time. And at the same time, we have to recognize that there is not a single executive on this plant who has ever said, "I want to spend $100 million on this project because I desperately want to deliver something on time, on scope and on budget." They don't care about that if they're not also delivering on benefit. It's about outcomes. All of the work that organizations are doing are about achieving the outcomes that the business needs, the outcomes that their customers need. Because if you don't do that, nothing else matters. Absolutely nothing. How are they doing that? Well, let's not worry too much about some of the smaller sort of bullet points under there. Let's focus on these peak sort of energies across the top of larger images across the top. They're doing it by focusing on the structure of the organization. In the past, every department has been run pretty much if it's its own business unit. We call them business unit sometimes. The head of the business unit determines how to expand their budget, what works to pursue, how they need to contribute to the organization. And the business unit head's goals and objectives don't always completely align with the organizational goals and objectives. So if you are a VP in charge of a particular department, are you going to focus on what the business needs? Or are you going to focus on what's going to get your bonus at the end of the year? I think we know the answer. So we've got to create that alignment, which is breaking down those silos. We've got to make sure that we don't have the whole infrastructure of executives and departments and the teams and decision-making and back and forth. Get rid of that. It slows things down. It doesn't help. They're also looking at changing their business processes to have that top down strategy drives everything. Strategy drives the investments. Investments drive the work. Work drives the outcomes. And if the outcomes aren't aligning with what you need, you adjust and repeat. And when the priorities have to shift because the world is not standing still, we have to keep up with technology changes. We have to keep up with disruptions that we aren't expecting and [indiscernible] anybody. We have to keep up with customer expectations. When all that happens, we still drive it down from the top. We also need a singular focus in organizations, and that's why you're really seeing a lot of the most successful organizations achieved. They don't get bogged down with whether or not we're delivering working waterfall methods or agile methods or hybrid methods. They don't care about what this department is doing or that department is doing. They focus about are we achieving our outcomes. And they're focused on enterprise agility, which is the idea that no matter what happens in your operating environment, no matter how things change, you always have the ability to adjust the work you're doing so that you still achieve those desired, expected and required outcomes even if those outcomes are changing. If customers are saying, "You know what, I don't care about anymore. Now I need this," then we adjust and we deliver on that. And enterprise agility is about doing that with a minimum amount of disruption, less time wasted, less effort wasted, less money wasted. If we do that and we continuously evolve instead of investing in a massive amount of time in these digital transformations or agile transformations or business transformations that cause a massive amount of disruption and don't actually achieve very much, just look at the failures there, then you'll actually find that you are able to deliver something that really is what the business needs, what the customer needs and actually drives performance. And as I mentioned before, we need systems to make that happen. We need systems that are integrated across the entire enterprise. One platform. You have many applications you want. Let people work with the agile execution tool that they want, waterfall execution tool that they want. But integrate it with the platform, so you've got that common data turning into information and insight. Let people work how they want and make sure the system support. If you can do that, then you're able to take that and drive it further. This is really the key. This is the secret to really driving performance. It's about understanding how can we make our organization more effective, how can we invest $100 million to get $250 million worth of benefit instead of $200 million, how can we make it $260 million or $270 million next year, $300 million the year beyond that, how can we continuously make ourselves more effective. A lot of that is about focusing on the work that matters. We've all seen projects that got done that no one really knew why they got done. Were they got handed halfway through. Or a lot of work was done, a lot of time was spent, a lot of money and effort went into them. But at the end of the day, we don't really know why and we don't really know whether we gained anything from it. We have to stop that. We also have to make sure that we're delivering better solutions in the first place. Not guessing what people want, but understanding the marketplace, internal and external, so that we're delivering solutions that are closer to what the organization needs to deliver and what the customer base and employee base need to deliver. That means we also need a greater understanding of how work ties back to the benefits and the priority of the organization. You've probably heard about value streams and business capability plan. That's something that a lot of organizations are seeing benefiting because it helps them to understand how the work they do contributes to the process of delivering and earning value. So expect to see more around value stream management as this goes forward because it's becoming a great way to understand how contributions happen and a great way for individuals to see how their personal efforts are helping the client via the colleague and the organizations. We also need to be more efficient. We need to make sure that we're reducing the amount of time from an idea not from an approval, from an idea to deliver. The approval should just be a thing that happens like that. That shouldn't be a bottleneck to this process at all. It has to be an idea to outcome. Are we minimizing that? Or are we wasting time? Are we making sure that all the work that we do is contributing to how the organization is achieving that value or are we wasting money by not changing quickly enough? Or taking too normal decisions? Or causing too much disruption when we do want to change? Are we making sure that everything we do is for the right reasons at all times? If not, what can we do? And then how are we breaking down this side? Are we getting rid of all those barriers to success? Because if we're not, we're costing the organization money. The first project that has to sit and wait for somebody hire up to make a decision is costing the organization of money. It's impacting the bottom line, and that's not good enough. We also need to make sure that we're never standing still. We need to make sure that we're in an environment of constant improvement. I don't want to see organizations spending massive amounts of money on transformations because transformations don't work. 70% failure rate, that is often quoted. And so a recent statistic that said the initial failure rate was only 57%. Okay, that was McKinsey survey that said that. So that sounds like things are getting better. But then they look to the failure rate after 3 years. How many of those changes actually stick? The failure rate after 3 years was 93%, 13 out of 14 transformations paid. We need to get away from that. We need to get to continuous improvement, continuous evolution. And we need to make sure that every single person working on this has accountability to the excellence of those strategic priorities. Not accountability for their own business unit, but the organization as a whole. That's what I'm seeing. That's where I'm seeing the best of the organization is actually making progress. And I know that some of those points are going to be brought out by Kevin in a couple of minutes. But before we get to that, I want to know what you think. So we have a poll for you. So here it is, and you can see it on your screen now. And you can see very easy how effective and efficient you feel your current strategic execution is. So give you a few minutes to think about this and make your selection. Don't forget when you've chosen to hit Submit. Otherwise, we will not capture the vote. And I'm going to bring in Newsha in just a moment to get her thoughts on this. But just a couple of reminders for you. First off, we do have those assets for you to download. So I think that's been highlighted in the screen now. So feel free to take -- to access those. We do have time at the end for questions and answers, so make sure that you put those in. And finally, there is going to be a survey after this. So you click on the Survey Now or let we remind for you, and we'd love to know how you feel about this webinar. So give you just a few more seconds to vote on this. And Newsha, let me bring you in. And I was very cool, and I didn't give people a middle option. So they've got to choose sort of a little bit positive or a little bit negative at least. [Voting]

So what do you think people are going to say?

Well, I would think not very. I will go with not very.

Not very? All right. Well, [indiscernible] because we can't actually see what people are voting until we click on the results. So I have no idea whether you're right or not. But, yes. I think...

Yes. What about you? What do you think? What are your thoughts?

I don't think we're going to see too many As and Ds. I hope we're not going to see too many As & Ds. So I think it is going to be sort of biased towards the middle. I hope we see more somewhat than not very, but I think you might be right that there might be more not very than somewhat. I see quite a few of you have voted. I think you have had enough time. So let me just click on that and see the results. Look at that. Virtual time. I guess if we want to sort of look at the bigger picture. It's certainly skewed negative because there's a lot more not at all relatively than there are verys, but almost a dead heat between not very and somewhat. But Newsha, I'll give you credit for that one because you were just about right.

I'd like to know who was very, which is...

There you go. I'd like to know about who was not at all. All right. So there you go. If you want to share thoughts on that a little bit more to those into the Q&A, we'll try and get to those. And let me just do that. And Newsha, you can introduce Kevin.

Yes. So we have -- thank you so much, Andy, for talking about our trends, what we see in the market and the challenges that day-to-day organizations are facing. Now we are joined by Kevin Mattingly from Cleveland Clinic, and I would like him to share his story with us using SPM.

Great. And thanks, Newsha. And thanks, Andy. I appreciate that. What I wanted to start with was just talking a little bit about the Cleveland Clinic. So here's a slide showing some facts and figures from our 2022 year-end data. One of the items I wanted to highlight was there's a box called care priorities in the middle, and these are the focus areas that all work we do should be aligned to. So care for patients, care for caregivers, care for the organization and care for their community. And then on the right side, you can see some data points figures that reflect now how we've done that through 2022 year-end. Below that on the left, you can see that we have roughly 77,000 caregivers worldwide, spread across multiple occasions throughout the world. Our primary facility locations, as you can see, are in the Ohio area. We also have U.S. services in the Florida and Nevada areas. We also provide international services in Toronto, London and Abu Dhabi. Now lastly, I'll mention that in our IT division, our ITDS, as we refer to it, we have approximately 1,200 full-time employees. I mentioned that because the primary use, at least of the SPM platform, is by our IT division. So let me then move on to our journey of SPM within ServiceNow. So you can see in 2020, ITSM has listed. And while that's not SPM, it is part of ServiceNow, it's important to mention that because one of the things that Andy mentioned earlier was around driving to a common platform for work management, and that was one of the directors from our IT leadership at that time was we need to drive towards a common platform for work management. So we initially started with IT Service Management but then using ServiceNow. And then along with that, we implemented demand management, which was formerly part of the IT Business Management or ITBM suite of applications. So those 2 went live concurrently. In 2021, our focus then shifted to more, I would say, project or plan work management. So we use the project application, agile development and time sheets as well. The following year, we focused more on resource management. And then this year 2023, our focus is on migrating groups that have chosen outside of our IT division that have chosen to use ServiceNow SPM, migrating them onto the platform. And they're primarily using the agile development and PPM project modules. Upcoming next year, our focus, one of our focus areas will be in strategic planning at workspace. So I'd like to talk about some of the challenges that we had prior to our migrations to SPM and how SPM helped us solve those challenges. So one of the first challenges we had was lack of visibility process to incoming project requests. So we had disparate tools that we use that weren't visible to a lot of people that needed to use those tools and have access to the data. So we implemented the demand module, as I mentioned earlier. But we also implemented idea as well, and I'll talk a little bit more about that later on. This not only helped us capture and prioritize incoming request in a single location for our IT division, but we can currently develop the process to help manage those incoming project requests, and then we've been maturing that process over the past 3 years. Another challenge we faced was multiple systems used to manage project work, which I also touched on previously. So that was a driving factor in us migrating to ServiceNow's platform, but SPM in particular, in order to have a single source for all ITV project work. Another challenge was the integrating agile and waterfall work. So within on our division, we use both types of methodologies, and it depends on which groups need to use it, but we had different systems that we used to manage that work. One of the key factors of us choosing to migrate to SPM was their hybrid project management functionality, which allowed us to use both waterfall and agile and combine them into a single work platform, and again, I'll touch on that on another slide later. Another challenge was around resource planning, and we would use spreadsheets to do this and other methods. And so having or using SPM resource management for all of our IT resource groups allows us to manage resource plans at both project and ethnic levels and also using out-of-the-box reporting to quickly retrieve and analyze the data that is in the resource plans. The last challenge we had was it was difficult to track time that was kind in specific categories. Our IT leadership wanted to know where we were spending our time on a high level, such as plan work or project work, run rate fix. And so by using timesheet management, we were able to capture that data as well as take IT tickets report time on a weekly basis in predetermined work categories, and then using various out-of-the-box dashboards, those leaders are able to analyze where that time is being spent. Okay. So next, I'm going to turn it back over to Newsha, and she will cover this slide.

Perfect. Thank you, Kevin. So we heard from Kevin how they are solving their challenges with SPM. Actually, last month, I was at ServiceNow largest customer event, Knowledge. And over and over again, I was asked this question on how do we start, how do we get started with SPM, and what is the path to get there, similar to Kevin's journey, and what is ServiceNow's approach. You see these 3 bubbles. And they start from the left, and we want to see the -- or you can -- the beginning is you want to know how to start with consolidating all your work, how can you move away from -- again, as Kevin mentioned, how you move away from Excel sheets and use actual SPM. You're just trying to see what your teams are working on and what our customers are asking for and prioritize all your work to accommodate value to your customers. Then -- and there are cost savings in there. Andy mentioned how much wastage is through all these challenges that the organizations are facing, and you can prioritize based on what value you're bringing to customers. And we have customers that consolidated view of all their work and once they have that then they take that to align what is important to them in terms of strategy and what brings value. So the middle bubble alignment, you're aligning all those work to your goals and strategies that was set by your organization. And you are only focusing on what matters most. And once you have that alignment, you move to the third level. And in there, you can see how you can accelerate this delivering of value across your enterprise. And here is really how you can transform how you operate at scale. So now I'd like to ask Kevin how his SPM journey has been with ServiceNow. I'm sure our audience are eager to know more about what you're doing at Cleveland Clinic.

Sure. Thanks, Newsha. And while I'm on this slide, I think it's -- sorry, I was going to make a comment that where we're at we as a -- from an SPM's perspective. We are, I would say, in between the consolidate and align approaches, even though we've been on the platform for a couple of years, we still have a lot of work to do to mature how we use the platform. And so I think -- so I'll talk about some of those things as we move forward. So first, Andy touched on it a number of times previously around consolidation to a single platform, and we started with demand management. And one of the reasons we started there was that a lot of the work that was coming in, we didn't really have great visibility to it, and we didn't have a way to evaluate all the work that was coming in and compare that to each other because we have a lot of work that comes in through our project intake process. And so one of the ways that we did that was by integrating the into the ServiceNow domain management platform, but which also -- which gave our IT stakeholders visibility for the work and a singular place to go to see all of the work -- incoming work. What it also did was help drive process maturation. So examples of things that we did to help mature the process around our demand management of us to develop a single source of input for all project requests for our customers, which we did not have previously. It also helped us drive the use of the idea management module within ServiceNow. I mentioned earlier, we did not do that idea initially with demand. But as we started to mature demand process, we have a group within our IT division business relationship managers that interface directly with our customers. So we saw a lot of value of integrating the work that they did with idea. And then the work that came out of what the PRMs did, then that directly into our demand management process. We also use as an example of ServiceNow state to help drive adoption of standard process flow for all items that went through our project intake process. And then also doing this helped us develop a priority and sizing matrix that we develop to help tier work, if you demand work, if you will, into areas that would help us then along with our customers prioritize the work. So we did this, and it was great. One of the things that we came up against them was we got to the end of the demand process, but we didn't have a place to send those demands. They just really sat there, and that's what really led into our implementation of the other models I mentioned earlier, project, agile and timesheet management. So one of the key benefits of why we chose ServiceNow SPM was because of their hybrid functionality. So prior to migrating the SPM, we had used JIRA for the use of managing agile work. We also used some other products, worksheet -- Workfront, excuse me, previously, and Smartsheet to help manage waterfall work. But we quickly came to realize that it wasn't allowing us to manage all the work in one platform, and we were having a lot of challenges doing that. So migrating the ServiceNow allows our project managers who use waterfall methodology to manage the work within the system. And then the groups that use agile, our IT resource group that use Agile and then use traditional agile methodologies to manage their work. And that the hybrid piece of it blends them together, so we can see all the work under one umbrella. So that was a big benefit for us. Lastly, one of the key benefits of migrating to SPM, and this is always kind of -- for us like the Holy Grail of resource management and managing our capacity. We attempted to do that at numerous times over the years, but never really had a great way to do it. And one of the main reasons why was just having a single platform to do that, as I mentioned earlier, we would use spreadsheets to manage resource plans. So we have anywhere from 50 to 60 different resource groups create spreadsheets on a monthly basis, and then we would consolidate those into one gigantic spreadsheet to do resource planning. It was highly inefficient. It was very manual, very labor-intensive. It took up a lot of time, and so we knew we needed to find a better way to do that. And so resource management and ServiceNow was the tool, the method that we chose to do that. So when we did that and started to ensure the use of resource management, that allowed our resource managers in IT to be able to see at a glance the work that their teams at on their plate, where their availability was using out-of-the-box reports to see that data. But then also at the group or a higher level, we can then roll up and see data at different levels, higher levels within our organization. And we also use it in terms of managing from the intake of work, so we can see where we have availability moving forward to take on new demands and when we can do that. Another example of how we use resource management is to take the data that's in ServiceNow and kind of put it -- deliver it in a format to a group of leaders with an organization called the Enterprise Technologies Service Committee, or ETSC. This is a group that was formed a couple of years ago to help IT understand what the priorities of the organization were and then guide us to help prioritize the work that we were doing. Prior to ServiceNow and using resource management, we never would have been able to pull that data together in an accurate fashion. So now that we have data in the system, it's a lot easier to pull the data together to go present to those leaders and then get their feedback of how we can help prioritize our work. So now I'd like to talk about some outcomes on lessons learned. So first one, greater visibility. I touched on this about having one platform for all work. When I say all work, I mean all IT services work. So not only just project work, but in service management, now it's all on one platform. And so our leaders and the users and customers, we all have one platform to go to, which gives us greater visibility to all that work and kind of being easily available for the project. Secondly, better prioritization. I've touched on a couple of ways that we've implemented priority models to help prioritize the incoming work and progress as well as the planned work that we have. Thirdly, it has allowed us to be more efficient. In particular, I think resource management is a great example, how we've been more efficient in terms of moving to -- moving away from spreadsheets to a common platform and to be able to view the allocation and availability at multiple levels within our ITD hierarchy. Lastly, faster delivery of value, and this has been key of using the hybrid approach that supports both of our methodologies. Because now that we have the single place to go for all the work and the teams that are managing the work, we're able to deliver on our commitments quickly. The last slide that I'd like to touch on lessons learned. So again, we implemented demand management 3 years ago, roughly, and then the majority of the other modules 2 years ago. So we learned quite a bit since then. The first lesson learned was the use of an implementation partner, and we used KPMG. It was immensely valuable. A lot of the teams that were involved with the initial implementation of onboarding SPM, we had little to no background in ServiceNow. And so having a partner was a key for us because they helped us understand how the system were used and where they thought it could provide value based on how our organization was structured at that time. Secondly, developed process management in conjunction with your SPM implementation. This might go without saying, but it's a really easy thing to overlook when you want to get on a new platform and you want to use the system to learn on how to use everything. But if you don't have a strong process management, still along with the implementation of the platform, I don't feel you will be as successful as you can be. And I think that's one of the things that we saw early on was developed process along with the implementation of the platform, and that really helped us be more successful than we would have been if we had not done that. Thirdly, prioritize the implementation of various SPM applications. So for example, I mentioned the resource management and our timeline. Resource management was actually a module that we were implementing, along with project agile and contracting back in 2021. Once we started to go through it, we realized we need to back off the resource management piece of it and let our teams focus on what was important at that time, so meaning the project as a time-tracking. So I would encourage teams that are onboarding SPM or that are considering using it that if you are going to use multiple modules within the SPM application, consider prioritizing the work or the modules that you'll be using in a fashion that will be aligned to your customers' needs and as well as their capability to do it. Lastly, leverage ServiceNow resources that are at your disposal. I joined the SPM evangelist program this year. And it's been immensely valuable, connecting with other customers and being able to participate in early product reviews. In addition, there's a number of resources that are available at the -- through the ServiceNow website. Their educational program is phenomenal, but also partnering with our customer service reps to help on a regular basis, educate us on new product offerings or vice versa going back to them with some of the challenges we're having and how can they help us. So leveraging service resources was key for our success. Okay. So with that, I am going to turn it over to Andy.

Yes, we're going to get to the Q&A in just a second because there are a lot of questions. And really encouraging for me, most of them are for Kevin. But before we get to Q&A, just one more poll for you, so you can see it on the screen now. What's the biggest barriers to making this happen in your organization? I've talked to you about theory. Kevin has given you some really great examples of what he's done. So take a couple of minutes to read those options, and don't forget to hit that Submit button. And if you do have more questions, now is a good time to get them in because otherwise, we won't be able to get to them. [Voting]

So Kevin, just while people are reading this and putting their thoughts, what do you think people are going to say, you've been through this, you've limited, you've experienced some of the time? What do you think might be the biggest barrier?

Yes, Andy, I would say that it would probably between -- between C and D, so knowing how to go about it. I mean that was a big challenge that I mentioned, and it wasn't learned of using a computation partner to help us figure out the best way to go about it. And also gaining leadership commitment. Without that, we never would have been able to do what we did, and it did take us a lot to get there. But once we were able to show the value of migrating to SPM, I think all of our leaders felt like that was -- we needed to go there. We needed to get to a single platform. And once that commitment was made, it was an easier path for us to go through our onboarding.

That leadership piece is critical. And not just getting their volume, but getting them to understand that you can't do this on top of everything else that you want to do. There's only one set of resources. And if you're going to do this, something else is going to have to sort of take a bit of a backseat. All right. I think most people who were going to vote have voted. So let's go to the solutions, the answers and see what people said, Look at that. Yes, exactly right. Exactly what you said, Kevin. The top 2 answers were the last 2 options with the fund of the time to adjust narrow behind that. And I guess, very encouragingly, very few people said that they don't recognize the need. So that's half the battle if the need is there. All right. So let's go into the quick Q&A. There are a lot of questions coming in. So Newsha, I know you've been looking at the questions, so I'll let you take it from here.

Wait, we have so many questions here, and I think most of them are addressed to Kevin. So Kevin, be ready. So first of all, I just wanted to say we've got so many questions. So -- and we are running out of time. We will get back to you if it's not answered live here. We have your e-mails, we have your names, so don't worry about that. So the first one I selected is to Kevin. How will the time card rollout receive across ITS? I think it's ITD for you. Does that drive your data for resource management?

Yes. So the time card rollout in it was received, I would say, in a lukewarm fashion. And I've seen this before in my career. Recording time, it's not a favorite activity of a lot of people. And so we really had to put in place the carrot and the stick method. So the stick method was we needed to require your core time, you have to do it. But we also wanted to couple that with, well, why are you doing it and what value is it driving. And so that's where we would show leaders. Well, look at the out-of-the-box report, and here's where your team is spending time. It allows you to analyze where they're spending time. And do you need to shift where they're spending their time? So I think once we did that, I think we started to buy or get greater adoption from the leaders. So I think we are going to have a challenge with getting people to report time. We still do today, but I think focusing on the value piece that helped us be more successful, I think, than we would have been about it. And also there was a -- and does that drive data for resource management? Absolutely. So resource management is coupled with time management to compare your estimates to your actions. So absolutely.

Perfect. We have another question again for Kevin. Work with it as well. What tools were used to manage project work before? And how did you manage the change and adoption of SPM replacing those tools?

And I did mention that during the presentation that we were using JIRA for project work that was managed in agile methodology, and then we were using Workfront and then Smartsheet for waterfall or project work. And then that's when we realized we needed to get to one platform and adopt using one platform that replaces those tools. So the adoption really wasn't that difficult. I think people were -- they were hungry to get to one single platform because it was frustrating, and we had to use multiple platforms. Once we did that, the adoption after the initial onboarding, I think it was generally positive.

Perfect. Another question. I'm curious to understand if and what type of customization configuration have Cleveland applied to enhance the out-of-the-box version of ServiceNow? Any specific use case examples would be appreciated.

That's a great question. And we did -- so I think the guiding principle was do as little customization as possible from out-of-the-box implementation. That's the guiding principle. When it comes to reality, there are some things that we needed to change in order to support our workflow. One example of that would be our Project NK process. So we configured the demand management space to align with our workflow, our states, if you will. So that is our -- those pieces are configured or customized to how we use domain management. But I think in terms of agile and project space, other than adding some custom deals, we've actually kept those pretty much out of the box. So -- but it's a great point. And I would -- as you're -- if you are onboarding the ServiceNow or considering it, I would encourage you to as closely as possible stick to out of the box and only change to customization or configuration if you really need to.

Great. Another question. Who within your organization submits ideas versus demands?

So ideas come from our -- we have a portal that's open to all customers within the clinic. So all -- any demand or project or process content filters into the idea management module. And then our BRMs, business relationship managers, they're the ones who filter through the ideas, the container face direct to the customer. And then they would then feed those flag ideas over into our demand management module.

And it's interesting. Another question that just talked about BRM. Were your BRM as part of the IT PMO or the IT service management office?

Technically neither, but we collaborate closely with them, and so they're part of our intake process. They're part of the work that we do as far as managing the project and board. And so there's a lot of collaboration there. So if you have BRMs regardless of where they fall within your IT organization, in collaboration between our PMO and the BRMs was key.

Great. Another question. All for you. Is SPM collaborative, for example, doing project intake can stakeholders be given a view or access to enter their initiatives and alternatively be able to only see their view and update as needed?

That's a good question, and I would say that it depends. And I think part of the reason I say it depends is based off of licensing. So there are different licensing models within SPM. So depending on what licensing models you choose to use, some customers or stakeholders may or may not be able to view certain demand to the input. For all project -- for all requesters that submit project requests, we do have a process that allows them to get regular updates via e-mail on the work that's going on and that they can see through the process where it is. So that was something that we submitted at a later point in time to help our requesters see where their requests were in the workflow.

And again, for Kevin, what lessons learned did you have for implementing resource management in the platform?

Resource management was probably -- has still continues to be our toughest one in terms of implementation. I would say lessons learned. One of the key items would be find some people, resource managers that are in your area that either want to use it or that have been successful in using it and leverage them to talk to other resource managers about how they use it to help them be successful. So it's one thing for our SPM team to go out and tell our resource manager, say this is -- here's our resource management is going to be here to help you. But they hear it from their peers. I think it brings on a different flavor and helps them, I think, helps more with adoption. So that was probably one of our biggest lessons learned was to leverage, I would say, champions, if you will, for resource management.

Another question, and this is a good one. How did you lead people through the process changes, such as using standard project requests, entering time? Where did you get encounter resistance? And had did you overcome?

One of the -- prior to onboarding, one of the things we did, we had training that we put in place, training modules. We had knowledge articles that we created. We also created session that people could have attended prior to onboarding to ask questions about the training or the knowledge articles or the processes that we're going to introduce. So we had -- I felt like we had a good, I would say, organizational change management process put in place prior to the migration. After the migration for the first 2 weeks, we had what we call Hypercare. It's basically from 8 to 5 holiday for 2 weeks. We have an open line where people could just dial in, ask questions if they have issues. So having that open line Hypercare approach with all of our subject matter experts online to help answer questions and push them off to a separate space if we needed to, I think that helped us be very successful in our onboarding approach.

And we are very close to finishing this webinar. We have so many questions. So interesting in learning what kinds of dashboards Cleveland Clinic created to share with leaders in their organization for C-suite, senior middle management. Like were there different dashboards?

So we did use out-of-the-box dashboards that come with the product. One of the dashboards that we've created and we're -- it's around resource management, in particular, is to help resource managers kind of see where the variances between what's expected of them and where they're not really meeting those expectations. So this is the way that we've put in place expectations for how each resource manager needs to do resource management in ServiceNow. And we have a dashboard that helps them see where there's gaps that they need to approve. We also created a custom dashboard to help us do a hierarchy level reporting for resource management. So we have what I'll call teams, resource groups, communities and domains. That's kind of our hierarchy level within our division. And so we have a resource management dashboard that was creative that helps leaders at the domain level, see resource data at the community level, see that and then at the resource [indiscernible].

Perfect. We have shown many questions that are unanswered right now, and we will definitely get back to you. We have all your e-mail, your names, we will send e-mails to you. One of the questions was how can we be part of the Evangelist Program. I will contact you with the information that you can get onboarded. And then once the recording, we can send out e-mails about that. So now we'd love to wrap up this webinar. First of all, I'd like to thank all of you who joined today and participated in this presentation. We have a couple of events coming up on July 18. So we have SPM workshops and then we have APM workshops. So if you're interested, there's a link here, right here as well as the QR code and it's scattered across the U.S. in different places. Make sure to register for those and take advantage of those workshops. We also have on-demand knowledge webinars. We have a lot of customers, presented great journeys similar to Cleveland Clinic and what Kevin went through with ServiceNow and strategic portfolio management-specific. Feel free to register, and it's free to take advantage of those on-demand sessions. And of course, this session was recorded, along with other webinars, you can access them. And lastly, I'd like to thank all of you who joined today as well as Andy Jordan and Kevin Mattingly. Thank you so much for spending this hour with us and sharing your knowledge and wisdom. Thank you.

Thanks, everyone.

Great. Thank you.