How can you use IT service performance measurement to improve vendor relationships?

1 Why measure IT service performance?

IT service performance measurement is the process of assessing how well a vendor delivers the IT services that you need, such as cloud computing, cybersecurity, data management, or software development. This process can help you align your expectations with the vendor's capabilities and commitments, identify and resolve any issues or gaps in the service delivery, evaluate the value and quality of the service, and provide feedback and recognition to the vendor. Furthermore, measuring IT service performance can assist in negotiating and adjusting the service level agreements and contracts based on the performance results, as well as foster trust and transparency between you and the vendor.

3 How to collect data?

To collect data on IT service performance, you need to define the sources, methods, frequency, and responsibilities for data collection. Common sources and methods of data collection include service monitoring tools, which track and record performance indicators such as uptime, response time, error rate, or resource utilization. Service reports document the service performance data with dashboards, charts, tables, or narratives. Service surveys gather feedback and opinions from you and your end-users on service satisfaction, expectations, or improvement suggestions. Lastly, service reviews are meetings or sessions that involve you and the vendor to discuss and evaluate the service performance, issues, achievements, or recommendations.

4 How to analyze data?

To analyze data on IT service performance, you need to define the criteria, methods, tools, and outputs for data analysis. Common criteria and methods of data analysis include baselines, which are the reference points or standards used to compare and measure the service performance; trends, which are the patterns or changes in the service performance over time; variations, which are the differences or deviations in the service performance across different factors; and correlations, which are the relationships or associations between different service performance indicators.

5 How to communicate data?

To effectively communicate data on IT service performance, you must define the audience, format, content, and channels for data communication. For example, executives need to know the strategic and financial implications of service performance, so data communication should be concise and compelling. Managers need to know the operational and functional aspects of service performance, so data communication should be detailed and accurate. And users need to know the service quality and experience, so data communication should be engaging and interactive. By using IT service performance measurement to improve vendor relationships, you can optimize your IT service delivery, enhance your IT service management and governance, and align your IT strategy with your business goals and needs.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?