How do you use IT service metrics and KPIs for continuous improvement?

1 What are IT service metrics and KPIs?

IT service metrics and KPIs are quantitative indicators that help you evaluate the performance and value of your IT services. Metrics are specific measurements that track aspects of your IT service delivery, such as availability, reliability, responsiveness, security, and customer satisfaction. KPIs are key metrics that align with your strategic goals and objectives, such as reducing costs, increasing productivity, enhancing customer experience, and improving service quality. Metrics and KPIs are not the same, but they are related and complementary.

2 Why do IT service metrics and KPIs matter?

IT service metrics and KPIs matter because they enable you to monitor and manage your IT services effectively and efficiently. They provide you with factual data and insights that help you understand the current state of your IT services, identify strengths and weaknesses, spot trends and patterns, detect issues and risks, and evaluate the impact of your actions and changes. They also help you communicate and demonstrate the value and benefits of your IT services to your stakeholders, such as customers, users, management, and vendors.

3 How to choose and define IT service metrics and KPIs?

In order to choose and define IT service metrics and KPIs, a systematic and structured approach should be taken that is in line with the IT service strategy and vision. Frameworks and standards, such as ITIL, COBIT, or ISO/IEC 20000, can provide guidance. The process includes defining IT service goals and objectives based on business needs and expectations, identifying critical success factors (CSFs) to determine if goals are being achieved, selecting KPIs to measure the performance of CSFs, defining metrics that support KPIs, specifying targets, thresholds, baselines, and benchmarks for metrics and KPIs, and documenting the definitions, formulas, sources, frequency, and owners of metrics and KPIs.

4 How to monitor and analyze IT service metrics and KPIs?

In order to monitor and analyze IT service metrics and KPIs, you need to use tools and methods that enable you to collect, store, process, visualize, and report your data. Software applications such as ITSM tools, BI tools, or dashboard tools can automate and integrate data collection and analysis. Additionally, charts, graphs, tables, scorecards, or reports can be used to display and communicate data in a clear and meaningful way. To ensure successful data collection and analysis, it is important to collect data regularly and consistently according to defined frequency and sources. Data should also be stored securely in a centralized and accessible location. Moreover, data must be processed accurately and timely using defined formulas and calculations. Finally, data should be visualized effectively using chosen techniques and formats while reporting the data appropriately to the intended audience.

5 How to use IT service metrics and KPIs for continuous improvement?

To use IT service metrics and KPIs for continuous improvement, you need to use them as the foundation for your decision-making and action-taking. Frameworks and models, such as Plan-Do-Check-Act (PDCA), SMART, or RACI, can help you structure and implement your improvement initiatives. This includes planning your improvement actions based on data analysis and insights, doing the actions with stakeholder involvement and collaboration, checking the results by measuring metrics before and after the actions, and acting on the feedback by reviewing results and identifying further changes.

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?