Measuring Itsm: Measuring, Reporting, and Modeling the It Service Management Metrics That Matter Most to It Senior Executives

By Randy A. Steinberg

How do you measure and report your IT services and processes? Which metrics matter the most to senior executives?

Finally, here is a book that shows you how! Not theory, but a practical guide that shows you the operational metrics to use and how these can be calculated into key performance indicators (KPIs) and critical success factors (CSFs) that resonate with senior management. In this book, you will learn about the following:
Defining and building a comprehensive metrics program
Metrics that are the most important and how to calculate them
How to measure your IT services
Tips and suggestions for what to do if inadequate tools and reporting exist
Suggested approach for how to build your metrics program step-by-step
In addition, this book directs you to free sources for IT service management process and service metrics and reporting dashboards that you can use yourself. Simply enter your key operational metrics and the KPIs and CSFs get automatically calculated!
A comprehensive guide for building any service management metrics program with all the information you need in one place!
No theory here . . . this gives us real metrics we can easily go after.
A fantastic addition to our IT service management solution set!

• Language: English
• Publisher: Trafford Publishing
• Release date: Dec 4, 2013
• ISBN: 9781490719443

Randy A. Steinberg

Randy A. Steinberg has extensive IT Service Management and operations experience gained from many clients around the world. He authored the ITIL 2011 Service Operation book published worldwide. Passionate about game changing management practices within the IT industry, Randy is a hands-on IT Service Management expert helping IT organizations transform their IT infrastructure management strategies and operational practices to meet today’s IT challenges. Randy served in leadership roles across many government, health, financial, manufacturing and consulting firms including a role as Global Head of IT Service Management for a worldwide media company with 176 operating centers around the globe. He implemented solutions for one company that went on to win a Malcolm Baldrige award for their IT service quality. He continually shares his expertise across the global IT community frequently speaking and consulting with many IT technology and business organizations to improve their service delivery and operations management practices.

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© Copyright 2013 Randy A. Steinberg.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the written prior permission of the author.

Printed in the United States of America.

ISBN: 978-1-4907-1945-0 (sc)

ISBN: 978-1-4907-1944-3 (e)

Cover design by: Anthony Mingo, Design & Art Direction

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Trafford rev. 11/18/2013

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Table of Contents

Dedication

Book Overview

Why This Book Was Written

Downloadable Content for This Book

Book Chapters in Brief

An Overview of ITSM Metrics

The Importance of ITSM Metrics

What Are Metrics That Matter?

Resistance to Using IT Metrics

Benefits of Using ITSM Metrics That Matter

The ITSM Metrics Model

Categories of Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Tolerance Thresholds

Critical Success Factors (CSFs)

Dashboards

Outcomes

What-Ifs

Analytical

Other

Incident Management Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

Problem Management Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

Request Fulfillment Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

Event Management Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

Access Management Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

Service Desk Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

Change Management Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

Release Management Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

Configuration Management Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

Service Level Management Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

Availability Management Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

Capacity Management Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

IT Service Continuity Management Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

IT Financial Management Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

IT Workforce Management Metrics

Operational Metrics

Key Performance Indicators (KPIs)

Why These Metrics (KPIs) Matter

Critical Success Factors (CSFs)

Measuring Services

Key Metrics for Measuring Service Quality

Customer Service Metrics

Operational Service Metrics

Capability Service Metrics

Financial Service Metrics

Installing the Service Metrics Tool

How to Use the ITSM Service Metrics Tool

Interpreting the Service Metrics Results

Alternatives If Few Metrics Available

Establishing a Minimal Metrics Program

Use Indicators

Random or Scheduled Inspection Results

Analogous Measures

Programmed Measures

Audit Results

Considerations for Using Minimal Metrics

Using the ITSM Project Modeling Tool

ITSM Project Modeling Tool Overview

Installing the Model

How to Use the ITSM Project Modeling Tool

Interpreting the Model Results

Projects with Low Likelihood of Success

Using the ITSM Metrics Modeling Tool

ITSM Metrics Model Tool Overview

Installing the Model

How to Use the ITSM Metrics Modeling Tool

Interpreting the Model Results

KPI Results

CSF Results

Risk Assessment Results

Balanced Scorecard Results

Modeling Business Decisions

Implementing an ITSM Metrics Program

ITSM Metrics Program End State

Work Breakdown Structure

Implementation Approach

Program Initiation

Program Design

Program Building and Testing

Program Pilot

Program Rollout and Transition

About the Author

IT faces a serious challenge…

59250.png It is the only business organization that almost never measures its operational effectiveness and efficiency

59248.png It seldom measures the costs incurred for the services it delivers outside the budget it is given

59246.png It monitors technologies but almost never monitors labor in terms of rework, waste and misuse

59244.png It implements technologies with little measurement of deficiencies and defect rates

In short, IT rarely monitors and manages to the metrics that matter most to IT Senior Executives. Worse yet, the following basic concepts seem to bypass many IT management organizations concerning the services they support and deliver:

If you don’t measure it, you can’t manage it

If you don’t measure it, you can’t improve it

If you don’t measure it, you probably don’t care’

If you can’t influence it, then don’t measure it

IT can no longer continue to operate this way.

It’s time to operate IT like a Service Organization.

—The Author

Dedication

This book is dedicated to those very hard working IT professionals, managers and executives who deserve to see their IT solutions deploy and operate day-to-day within acceptable levels of costs and risks to their company.

Chapter

1

Book Overview

Why This Book Was Written

This book is written in the hopes of helping IT to overcome the metrics gap that exists in many of today’s IT organizations. Much has been written lately about how IT needs to be run like a business. A stronger statement is that IT needs to act like a business. While technology is certainly important, IT needs to inject much better business management practices by operating services instead of technology silos, measuring the quality and effectiveness of those services and taking timely actions to make sure those services are delivered in line with business needs.

The book focuses on the metrics reporting aspects of running an IT services operation. It assumes that the reader is familiar with ITSM concepts—maybe even in the throes of implementing ITSM practices. Without appropriate metrics, there is no way that those efforts can be validated and their benefits quantified. Without metrics that matter, it is impossible for any ITSM effort to ever demonstrate its value or operate in a cycle of continuous improvement.

In working with many companies around the globe, it is surprising how many IT professionals really have few