Driving productivity transformations in services organizations must be a data-driven exercise. We develop a methodology that exploits effort-data analysis in order to drive productivity optimization initiatives with solid business cases and action plans. A services factory model is applied to a service provider organization to monitor where and how time is spent by the service staff. The results are used to identify and rank productivity optimizing initiatives. We illustrate how our methodology is applied to a real IT service delivery environment. © 2012 IFIP.