Besides the small introduction, subscribers and consulting clients within this management domain have access to:
Identify the KPIs that matter to your organization’s goals.
Use the IT Management Dashboard on the Info-Tech website to display your chosen KPIs.
Use the review of your KPIs to build an action plan to drive performance.
Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.
Determine the KPIs that matter to your organization.
Identify organizational goals
Identify IT goals and their organizational goal alignment
Identify business pain points
1.1 Identify organizational goals.
1.2 Identify IT goals and organizational alignment.
1.3 Identify business pain points.
List of goals and pain points to create KPIs for
Learn how to configure and use the IT Management Dashboard.
Configured IT dashboard
Initial IT scorecard report
2.1 Review metrics and KPI best practices.
2.2 Use the IT Metrics Library.
2.3 Select the KPIs for your organization.
2.4 Use the IT Management Dashboard.
Definition of KPIs to be used, data sources, and ownership
Configured IT dashboard
Learn how to review and plan actions based on the KPIs.
Lead KPI review to actions to improve performance
3.1 Create the scorecard report.
3.2 Interpret the results of the dashboard.
3.3 Use the IT Metrics Library to review suggested actions.
Initial IT scorecard report
Action plan with initial actions
Use your KPIs to drive performance.
Improve your metrics program to drive effectiveness
4.1 Develop your action plan.
4.2 Execute the plan and tracking progress.
4.3 Develop new KPIs as your practice matures.
Understanding of how to develop new KPIs using the IT Metrics Library
Ensure all documentation and plans are complete.
Documented next steps
5.1 Complete IT Metrics Library documentation.
5.2 Document decisions and next steps.
IT Metrics Library
Action plan
It’s difficult for CIOs and other top-level leaders of IT to know if everything within their mandate is being managed effectively. Gaining visibility into what’s happening on the front lines without micromanaging is a challenge most top leaders face.
Understanding Info-Tech’s Management and Governance Framework of processes that need to be managed and being able to measure what’s important to their organization's success can give leaders the ability to focus on their key responsibilities of ensuring service effectiveness, enabling increased productivity, and creating the ability for their teams to innovate.
Even if you know what to measure, the measurement alone will lead to minimal improvements. Having the right methods in place to systematically collect, review, and act on those measurements is the differentiator to driving up the maturity of your IT organization.
The tools in this blueprint can help you identify what to measure, how to review it, and how to create effective plans to improve performance.
Tony Denford
Research Director, Info-Tech Research Group
Info-Tech Insight
Mature your IT department by aligning your measures with your organizational goals. Acting early when your KPIs deviate from the goals leads to improved performance.
Build your dashboard quickly using the toolset in this research and move to improvement actions as soon as possible.
Productivity increased by 30%
Fire/smoke incidents decreased by 25% (high priority)
Average work request response time reduced by 64%
Savings of $1.6 million in the first year
(CFI, 2013)
Don’t get overwhelmed by the number of things you can measure. It can take some trial and error to find the measures that best indicate the health of the process.
35% - Only 35% of governing bodies review data at each meeting. (Committee of University Chairs, 2008)
Poor data can lead to incorrect conclusions, limit analysis, and undermine confidence in the value of your dashboard.
Achieving perfect data is extremely time consuming and may not add much value. It can also be an excuse to avoid getting started with metrics and analytics.
Data quality is a struggle for many organizations. Consider how much uncertainty you can tolerate in your analysis and what would be required to improve your data quality to an acceptable level. Consider cost, technological resources, people resources, and time required.
Info-Tech Insight
Analytics are only as good as the data that informs it. Aim for just enough data quality to make informed decisions without getting into analysis paralysis.
Tying KPIs and metrics to performance often leads to undesired behavior. An example of this is the now infamous Wells Fargo cross-selling scandal, in which 3.5 million credit card and savings accounts were opened without customers’ consent when the company incented sales staff to meet cross-selling targets.
Although this is an extreme example, it’s an all-too-common phenomenon.
A focus on the speed of closure of tickets often leads to shortcuts and lower-quality solutions.
Tying customer value to the measures can align the team on understanding the objective rather than focusing on the measure itself, and the team will no longer be able to ignore the impact of their actions.
Surrogation is a phenomenon in which a measure of a behavior replaces the intent of the measure itself. People focus on achieving the measure instead of the behavior the measure was intended to drive.
The Threefold Role of the IT Executive | Core CIO Objectives |
---|---|
IT Organization - Manager | A - Optimize the Effectiveness of the IT Organization |
Enterprise - Partner | B - Boost the Productivity of the Enterprise |
Market - Innovator | C - Enable Business Growth Through Technology |
Low-Maturity Metrics Program
Trailing indicators measure the outcomes of the activities of your organization. Hopefully, the initiatives and activities are aligned with the organizational goals.
High-Maturity Metrics Program
The core CIO objectives align with the organizational goals, and teams define leading indicators that show progress toward those goals. KPIs are reviewed often and adjustments are made to improve performance based on the leading indicators. The results are improved outcomes, greater transparency, and increased predictability.
Periodically: As appropriate, review the effectiveness of the KPIs and adjust as needed.
Frequently: At least once per month, but the more frequent, the more agility your organization will have.
1. Choose the KPIs | 2. Build the Dashboard | 3. Create the Action Plan | |
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Phase Steps |
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|
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Phase Outcomes | A defined and documented list of the KPIs that will be used to monitor each of the practice areas in your IT mandate | A configured dashboard covering all the practice areas and the ability to report performance in a consistent and visible way | An action plan for addressing low-performing indicators |
Don’t just measure things because you can. Change what you measure as your organization becomes more mature.
Measure things that will resolve pain points or drive you toward your goals.
Look for indicators that show the health of the practice, not just the results.
Ease of use will determine the success of your metrics program, so keep it simple to create and review the indicators.
If indicators are showing suboptimal performance, develop an action plan to drive the indicator in the right direction.
Act early and often.
Ensure you understand what’s valued and measure whether the value is being produced. Let front-line managers focus on tactical measures and understand how they are linked to value.
Determine what action will lead to the desired result and measure if the action is being performed. It’s better to predict outcomes than react to them.
Customize the KPIs for your organization using the IT Metrics Library
Keep track of the actions that are generated from your KPI review
The IT Overall Scorecard gives a holistic view of the performance of each IT function
Keeping track of the number of actions identified and completed is a low overhead measure. Tracking time or money saved is higher overhead but also higher value.
Industry: Government Services
Source: Info-Tech analyst experience
A newly formed application support team with service desk responsibilities was becoming burned out due to the sheer volume of work landing on their desks. The team was very reactive and was providing poor service due to multiple conflicting priorities.
To make matters worse, there was a plan to add a major new application to the team’s portfolio.
The team began to measure the types of work they were busy doing and then assessed the value of each type of work.
The team then problem solved how they could reduce or eliminate their low-value workload.
This led to tracking how many problems were being resolved and improved capabilities to problem solve effectively.
Upon initial data collection, the team was performing 100% reactive workload. Eighteen months later slightly more than 80% of workload was proactive high-value activities.
The team not only was able to absorb the additional workload of the new application but also identified efficiencies in their interactions with other teams that led to a 100% success rate in the change process and a 92% decrease in resource needs for major incidents.
"Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful."
"Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track."
"We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place."
"Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project."
Call #1: Scope dashboard and reporting needs.
Call #2: Learn how to use the IT Metrics Library to select your metrics.
Call #3: Set up the dashboard.
Call #4: Capture data and produce the report.
Phase 3 – Create the Action Plan
Call #5: Review the data and use the metrics library to determine actions.
Call #6: Improve the KPIs you measure.
A Guided Implementation (GI) is series of calls with an Info-Tech analyst to help implement our best practices in your organization.
A typical GI is between 5 and 8 calls over the course of 2 to 3 months.
Contact your account representative for more information.
workshops@infotech.com 1-888-670-8889
Day 1 | Day 2 | Day 3 | Day 4 | Day 5 | |
---|---|---|---|---|---|
Identify What to Measure | Configure the Dashboard Tool | Review and Develop the Action Plan | Improve Your KPIs | Compile Workshop Output | |
Activities | 1.1 Identify organizational goals. 1.2 Identify IT goals and organizational alignment. 1.3 Identify business pain points. |
2.1 Determine metrics and KPI best practices. 2.2 Learn how to use the IT Metrics Library. 2.3 Select the KPIs for your organization. 2.4 Configure the IT Management Dashboard. |
3.1 Create the scorecard report. 3.2 Interpret the results of the dashboard. 3.3 Use the IT Metrics Library to review suggested actions. |
4.1 Develop your action plan. 4.2 Execute the plan and track progress. 4.3 Develop new KPIs as your practice matures. |
5.1 Complete the IT Metrics Library documentation. 5.2 Document decisions and next steps. |
Outcomes | 1. List of goals and pain points that KPIs will measure | 1. Definition of KPIs to be used, data sources, and ownership 2. Configured IT dashboard |
1. Initial IT scorecard report 2. Action plan with initial actions |
1. Understanding of how to develop new KPIs using the IT Metrics Library | 1. IT Metrics Library documentation 2. Action plan |
Phase 1
1.1 Review Available KPIs
1.2 Select KPIs for Your Org.
1.3 Identify Data Sources and Owners
Phase 2
2.1 Understand the IT Management Dashboard
2.2 Build and Review the KPIs
Phase 3
3.1 Prioritize Low-Performing Indicators
3.2 Review Suggested Actions
3.3 Develop the Action Plan
This phase will walk you through the following activities:
Reviewing and selecting the KPIs suggested in the IT Metrics Library.
Identifying the data source for the selected KPI and the owner responsible for data collection.
This phase involves the following participants:
1.1.1 Download the IT Metrics Library and review the KPIs for each practice area.
Step 1.1 – Review Available KPIs
Step 1.2 – Select KPIs for Your Org.
Step 1.3 – Identify Data Sources and owners
This step will walk you through the following activities:
Downloading the IT Metrics Library
Understanding the content of the tool
Reviewing the intended goals for each practice area
This step involves the following participants:
Downloaded tool ready to select the KPIs for your organization
The “Practice” and “Process” columns relate to each of the boxes on the Info-Tech Management and Governance Framework. This ensures you are measuring each area that needs to be managed by a typical IT department.
KPI - The key performance indicator to review
CSF - What needs to happen to achieve success for each goal
Goal - The goal your organization is trying to achieve
Owner - Who will be accountable to collect and report the data
Data Source (typical) - Where you plan to get the data that will be used to calculate the KPI
Baseline/Target - The baseline and target for the KPI
Rank - Criticality of this goal to the organization's success
Action - Suggested action if KPI is underperforming
Blueprint - Available research to address typical underperformance of the KPI
Practice/Process - Which practice and process the KPI represents
1.2.1 Select the KPIs that will drive your organization forward
1.2.2 Remove unwanted KPIs from the IT Metrics Library
Step 1.1 – Review Available KPIs
Step 1.2 – Select KPIs for Your Org.
Step 1.3 – Identify Data Sources and Owners
This step will walk you through the following activities:
This step involves the following participants:
A shortlist of selected KPIs
1.3.1 Document the data source
1.3.2 Document the owner
1.3.3 Document baseline and target
Step 1.1 – Review Available KPIs
Step 1.2 – Select KPIs for Your Org.
Step 1.3 – Identify Data Sources and Owners
This step will walk you through the following activities:
Documenting for each KPI where you plan to get the data, who is accountable to collect and report the data, what the current baseline is (if available), and what the target is
This step involves the following participants:
A list of KPIs for your organization with appropriate attributes documented
Phase 1
1.1 Review Available KPIs
1.2 Select KPIs for Your Org.
1.3 Identify Data Sources and Owners
Phase 2
2.1 Understand the IT Management Dashboard
2.2 Build and Review the KPIs
Phase 3
3.1 Prioritize Low-Performing Indicators
3.2 Review Suggested Actions
3.3 Develop the Action Plan
This phase will walk you through the following activities:
Understanding the IT Management Dashboard
Configuring the IT Management Dashboard and entering initial measures
Produce thing IT Scorecard from the IT Management Dashboard
Interpreting the results
This phase involves the following participants:
2.1.1 Logging into the IT Management Dashboard
2.1.2 Understanding the “Overall Scorecard” tab
2.1.3 Understanding the “My Metrics” tab
Step 2.1 – Understand the IT Management Dashboard
Step 2.2 – Build and review the KPIs
This step will walk you through the following activities:
Accessing the IT Management Dashboard
Basic functionality of the tool
This step involves the following participants:
Understanding of how to administer the IT Management Dashboard
2.2.1 Entering the KPI descriptions
2.2.2 Entering the KPI actuals
2.2.3 Producing the IT Overall Scorecard
Step 2.1 – Understand the IT Management Dashboard
Step 2.2 – Build and review the KPIs
This step will walk you through the following activities:
Entering the KPI descriptions
Entering the actuals for each KPI
Producing the IT Overall Scorecard
This step involves the following participants:
An overall scorecard indicating the selected KPI performance
Example of a custom metric
Example of a standard metric
Phase 1
1.1 Review Available KPIs
1.2 Select KPIs for Your Org.
1.3 Identify Data Sources and Owners
Phase 2
2.1 Understand the IT Management Dashboard
2.2 Build and Review the KPIs
Phase 3
3.1 Prioritize Low-Performing Indicators
3.2 Review Suggested Actions
3.3 Develop the Action Plan
This phase will walk you through the following activities:
Prioritizing low-performing indicators
Using the IT Metrics Library to review suggested actions
Developing your team’s action plan to improve performance
This phase involves the following participants:
3.1.1 Determine criteria for prioritization
3.1.2 Identify low-performing indicators
3.1.3 Prioritize low-performing indicators
Step 3.1 – Prioritize low-performing indicators
Step 3.2 – Review suggested actions
Step 3.3 – Develop the action plan
This step will walk you through the following activities:
Determining the criteria for prioritization of low-performing indicators
Identifying low-performing indicators
Prioritizing the low-performing indicators
This step involves the following participants:
A prioritized list of low-performing indicators that need remediation
Often when metrics programs are established, there are multiple KPIs that are not performing at the desired level. It’s easy to expect the team to fix all the low-performing indicators, but often teams are stretched and have conflicting priorities.
Therefore it’s important to spend some time to prioritize which of your indicators are most critical to the success of your business.
Also consider, if one area is performing well and others have multiple poor indicators, how do you give the right support to optimize the results?
Lastly, is it better to score slightly lower on multiple measures or perfect on most but failing badly on one or two?
3.2.1 Review suggested actions in the IT Metrics Library
Step 3.1 – Prioritize low-performing indicators
Step 3.2 – Review suggested actions
Step 3.3 – Develop the action plan
This step will walk you through the following activities:
Reviewing the suggested actions in the IT Metrics Library
This step involves the following participants:
An idea of possible suggested actions
3.3.1 Document planned actions
3.3.2 Assign ownership of actions
3.3.3 Determine timeline of actions
3.3.4 Review past action status
Step 3.1 – Prioritize low- performing indicators
Step 3.2 – Review suggested actions
Step 3.3 – Develop the action plan
This step will walk you through the following activities:
Using the action plan tool to document the expected actions for low-performing indicators
Assigning an owner and expected due date for the action
Reviewing past action status for accountability
This step involves the following participants:
An action plan to invoke improved performance
Info-Tech Insight
For larger initiatives try to break the task down to what is likely manageable before the next review. Seeing progress can motivate continued action.
Info-Tech Insight
Assigning clear ownership can promote accountability for progress.
Info-Tech Insight
If the target completion date is too far in the future, break the task into manageable chunks.
Info-Tech Insight
Seek to understand the reasons that tasks are not being completed and problem solve for creative solutions to improve performance.
Keeping track of the number of actions identified and completed is a low overhead measure.
Tracking time or money saved is higher overhead but also higher value.
Metric | Current | Goal |
---|---|---|
Number of actions identified per month as a result of KPI review | 0 | TBD |
$ saved through actions taken due to KPI review | 0 | TBD |
Time saved through actions taken due to KPI review | 0 | TBD |
Through this project we have identified typical key performance indicators that are important to your organization’s effective management of IT.
You’ve populated the IT Management Dashboard as a simple method to display the results of your selected KPIs.
You’ve also established a regular review process for your KPIs and have a method to track the actions that are needed to improve performance as a result of the KPI review. This should allow you to hold individuals accountable for improvement efforts.
You can also measure the effectiveness of your KPI program by tracking how many actions are identified as a result of the review. Ideally you can also track the money and time savings.
If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech workshop.
Contact your account representative for more information.
workshops@infotech.com
1-888-670-8889
Contact your account representative for more information.
workshops@infotech.com 1-888-670-8889
To accelerate this project, engage your IT team in an Info-Tech Workshop with an Info-Tech analyst team.
Info-Tech analysts will join you and your team at your location or welcome you to Info-Tech’s historic Toronto office to participate in an innovative onsite workshop.
The following are sample activities that will be conducted by Info-Tech analysts with your team:
Select the KPIs for your organization
Examine the benefits of the KPIs suggested in the IT Metrics Library and help selecting those that will drive performance for your maturity level.
Build an action plan
Discuss options for identifying and executing actions that result from your KPI review. Determine how to set up the discipline needed to make the most of your KPI review program.
Principal Research Director, CIO – Service Management Info-Tech Research Group
Practice Lead, CIO – People & Leadership Info-Tech Research Group
Practice Lead, Infrastructure & Operations Info-Tech Research Group
Practice Lead, Security, Risk & Compliance Info-Tech Research Group
Practice Lead, Applications and Agile Development Info-Tech Research Group
Practice Lead, Applications – Project and Portfolio Mgmt. Info-Tech Research Group
Vice President, Applications Info-Tech Research Group
Research Director, CIO Info-Tech Research Group
Practice Lead, Enterprise Applications Info-Tech Research Group
Practice Lead, Enterprise Architecture, Data & BI Info-Tech Research Group
Executive Counselor Info-Tech Research Group
Develop Meaningful Service Metrics to Ensure Business and User Satisfaction
Use Applications Metrics That Matter
Take Control of Infrastructure Metrics
Bach, Nancy. “How Often Should You Measure Your Organization's KPIs?” EON, 26 June 2018. Accessed Jan. 2020.
“The Benefits of Tracking KPIs – Both Individually and for a Team.” Hoopla, 30 Jan. 2017. Accessed Jan. 2020.
Chepul, Tiffany. “Top 22 KPI Examples for Technology Companies.” Rhythm Systems, Jan. 2020. Accessed Jan. 2020.
Cooper, Larry. “CSF's, KPI's, Metrics, Outcomes and Benefits” itSM Solutions. 5 Feb. 2010. Accessed Jan 2020.
“CUC Report on the implementation of Key Performance Indicators: case study experience.” Committee of University Chairs, June 2008. Accessed Jan 2020.
Harris, Michael, and Bill Tayler. “Don’t Let Metrics Undermine Your Business.” HBR, Sep.–Oct 2019. Accessed Jan. 2020.
Hatari, Tim. “The Importance of a Strong KPI Dashboard.” TMD Coaching. 27 Dec. 2018. Accessed Jan. 2020.
Roy, Mayu, and Marian Carter. “The Right KPIs, Metrics for High-performing, Cost-saving Space Management.” CFI, 2013. Accessed Jan 2020.
Schrage, Michael, and David Kiron. “Leading With Next-Generation Key Performance Indicators.” MIT Sloan Management Review, 26 June 2018. Accessed Jan. 2020.
Setijono, Djoko, and Jens J. Dahlgaard. “Customer value as a key performance indicator (KPI) and a key improvement indicator (KII)” Emerald Insight, 5 June 2007. Accessed Jan 2020.
Skinner, Ted. “Balanced Scorecard KPI Examples: Comprehensive List of 183 KPI Examples for a Balanced Scorecard KPI Dashboard (Updated for 2020).” Rhythm Systems, Jan. 2020. Accessed Jan 2020.
Wishart, Jessica. “5 Reasons Why You Need The Right KPIs in 2020” Rhythm Systems, 1 Feb. 2020. Accessed Jan. 2020.