February 21, 2018

KPIs – Just another acronym or the KEY TO RESULTS

Measuring the success of your ITSM transformation can be tricky. How do you know you’ve implemented your ITSM strategy correctly and have aligned your IT with your business? Well-designed Key Performance Indicators (KPIs) are the way to determine if you’ve met your ITSM goals.

What are Key Performance Indicators (KPIs)?

People. Devices. Services. Processes. IT makes up a vast interconnected web of all these things, and they constitute a complex science. Despite this seemingly inherent complexity, IT’s purpose comes down to a simple question: Are you meeting business and customer expectations – or not? And further, how do you know you’re meeting those expectations?

This is where Key Performance Indicators (KPIs) come in.

In essence, KPIs measure how effectively companies are meeting their business goals.

At a high level, KPIs tell you how well your organisation is performing overall. More detailed, low-level KPIs cast light on processes in your various departments, such as IT, sales, marketing, and others.

Is there a best way to design and build KPIs?

We find the best approach to designing KPIs is in a top-down fashion, but built from the bottom up. It’s no small task to translate business drivers for each of your departments and functions into effective KPIs. However, there is no other way to ensure you’ve aligned IT to your business. By reducing business expectations to KPI numbers, you’ll encourage the business to express just what they mean by good IT support.

Once you’ve articulated the KPIs from the business, the bottom-up work begins. What this means is you’ll be working with your Operations Group to identify how they contribute to each KPI, and then laying down Operational Variables that measure all performance aspects. These aspects are: Throughput, Rework, Loss, and Quality Output. You then determine how to combine these variables into your final Business KPIs.

How do you know they’re accurate?

A crucial element in the KPI measurement and monitoring process is making sure your team members can see them, in real time, through the use of dashboards. Granting team members this access means they’ll take ownership of IT Operations, and they’ll be able to uncover the causes of service issues, without resorting to lengthy analysis activities.

Other IT functions will require more thought, because many IT groups perform multiple functions within the organisation. However, if you identify the roles and responsibilities in each Service Management process, you’ll build more effective individual and team KPIs. These KPIs will then underpin your overall Service metrics.

At Optimus Australia, we believe KPIs are the key to results.

Contact us today

Of course, there is a lot more to the story on the effective measurement of KPIs. Feel free to download our complete white paper here, and contact us. Let us show you how Optimus Australia will help you achieve your KPI measurement goals.