Measuring Itsm: Measuring, Reporting, and Modeling the It Service Management Metrics That Matter Most to It Senior Executives
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About this ebook
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!
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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Measuring Itsm - Randy A. Steinberg
© 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
Because of the dynamic nature of the Internet, any web addresses or links contained in this book may have changed since publication and may no longer be valid. The views expressed in this work are solely those of the author and do not necessarily reflect the views of the publisher, and the publisher hereby disclaims any responsibility for them.
Any people depicted in stock imagery provided by Thinkstock are models,
and such images are being used for illustrative purposes only.
Certain stock imagery © Thinkstock.
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