KPI Library - IT Service Management KPIs

Why use the KPI Library?

Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

This vast range of KPIs across various industries and functions offers the flexibility to tailor Performance Management and Measurement to the unique aspects of your organization, ensuring more precise monitoring and management.

Each KPI in the KPI Library includes 12 attributes:

KPI definition
Potential business insights [?]
Measurement approach/process [?]
Standard formula [?]
Trend analysis [?]
Diagnostic questions [?]
Actionable tips [?]
Visualization suggestions [?]
Risk warnings [?]
Tools & technologies [?]
Integration points [?]
Change impact [?]

It is designed to enhance Strategic Decision Making and Performance Management for executives and business leaders. Our KPI Library serves as a resource for identifying, understanding, and maintaining relevant competitive performance metrics.

Need KPIs for a function not listed? Email us at support@flevy.com.

We have 45 KPIs on IT Service Management in our database. KPIs are crucial in IT Service Management because they provide measurable values that reflect the performance and health of various IT services. By monitoring these indicators, organizations can gain insights into how effectively their IT services are supporting business objectives and user needs.

They enable IT teams to identify areas that require improvement, optimize processes, and align services with strategic goals. KPIs also facilitate communication with stakeholders by offering clear, quantifiable data that can justify investments and demonstrate value. Moreover, they can help predict potential service disruptions, allowing for proactive management and minimizing downtime, which is essential for maintaining business continuity and enhancing customer satisfaction. In summary, KPIs are indispensable tools for continuous improvement and accountability within IT Service Management.

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KPI	Definition	Business Insights [?]	Measurement Approach	Standard Formula
Asset Utilization Rate More Details	The degree to which IT assets are being used relative to their potential.	Helps in understanding the efficiency of asset allocation and usage within IT services.	Tracks the proportion of total assets actively being used to generate value, as opposed to underused or idle assets.	(Total Active Assets / Total Available Assets) * 100
Trend Analysis [?] Increasing asset utilization rate may indicate improved operational efficiency or increased demand for IT services. Decreasing rate could signal underutilized assets or potential issues in resource allocation. Diagnostic Questions [?] Are there specific IT assets that consistently show low utilization? How does our asset utilization rate compare with industry benchmarks or similar organizations? Actionable Tips [?] Implement asset tracking and monitoring systems to identify underutilized resources. Consider reallocating resources based on usage patterns to optimize asset utilization. Regularly review and update IT asset management policies and procedures to ensure efficient utilization. Visualization Suggestions [?] Line charts showing the trend of asset utilization rate over time. Pie charts to visualize the distribution of asset utilization across different categories or departments. Risk Warnings [?] Low asset utilization may lead to increased operational costs and reduced return on investment. High asset utilization without proper maintenance and upgrades may lead to performance degradation and increased downtime. Tools & Technologies [?] Asset management software such as ServiceNow or SolarWinds to track and analyze asset utilization. Monitoring tools like Nagios or Zabbix to continuously assess the performance of IT assets. Integration Points [?] Integrate asset utilization data with IT service desk systems to identify potential resource constraints impacting service delivery. Link asset utilization metrics with financial systems to understand the cost implications of underutilized assets. Change Impact [?] Improving asset utilization can lead to cost savings and better resource allocation, but may require initial investment in monitoring and management tools. Reduced asset utilization may impact service levels and user satisfaction, affecting overall IT performance and reputation.
Availability of Key Services More Details	The percentage of time that key IT services are available and operational.	Provides insight into the reliability and robustness of essential IT services.	Measures the percentage of time that critical services are fully operational and available to users.	(Total Uptime of Key Services / Total Time) * 100
Trend Analysis [?] An increasing availability of key services may indicate improved infrastructure or proactive maintenance efforts. A decreasing availability could signal aging technology, increased demand, or inadequate support resources. Diagnostic Questions [?] Are there specific services that are consistently unavailable or experiencing downtime? How does the availability of key services align with SLA targets or industry standards? Actionable Tips [?] Invest in robust monitoring and alerting systems to quickly identify and address service disruptions. Implement redundancy and failover mechanisms to minimize the impact of potential outages. Regularly review and update maintenance schedules to minimize service disruptions during peak usage times. Visualization Suggestions [?] Line charts showing the availability percentage of key services over time. Pie charts comparing the distribution of service downtime across different categories or departments. Risk Warnings [?] Low availability of key services can lead to productivity losses and negative impacts on business operations. Consistently high downtime may indicate systemic issues that require significant investment to resolve. Tools & Technologies [?] IT service management platforms like ServiceNow or BMC Helix to track and analyze service availability metrics. Network monitoring tools such as SolarWinds or Nagios to proactively identify potential service disruptions. Integration Points [?] Integrate service availability data with incident management systems to streamline the resolution of service disruptions. Link availability metrics with capacity planning to ensure that infrastructure can support demand without compromising service levels. Change Impact [?] Improving service availability can enhance employee productivity and customer satisfaction, leading to potential business growth. However, investments in redundancy and failover mechanisms may increase operational costs in the short term.
Average Cost of Downtime More Details	The average cost incurred by the organization for each minute of IT service downtime.	Reveals the financial impact of service interruptions, emphasizing the importance of system reliability.	Accounts for lost revenue, productivity, and recovery costs associated with service outages.	Total Downtime Cost / Total Number of Outages
Trend Analysis [?] An increasing average cost of downtime may indicate a rise in IT service disruptions or longer resolution times. A decreasing cost could signal improved incident management processes or investments in redundancy and failover capabilities. Diagnostic Questions [?] What are the primary causes of IT service downtime and how can they be mitigated? Are there specific systems or applications that contribute significantly to the average cost of downtime? Actionable Tips [?] Invest in proactive monitoring and predictive maintenance to identify and address potential issues before they cause downtime. Implement robust backup and disaster recovery solutions to minimize the impact of service disruptions. Regularly review and update incident response and resolution procedures to reduce downtime costs. Visualization Suggestions [?] Line charts showing the trend of average cost of downtime over time. Pareto charts to identify the most significant contributors to downtime costs. Risk Warnings [?] High average cost of downtime can lead to financial losses and damage to the organization's reputation. Chronic or increasing costs may indicate systemic issues in IT infrastructure or operations that require immediate attention. Tools & Technologies [?] IT service management platforms like ServiceNow or BMC Helix can provide comprehensive insights into downtime costs and trends. Monitoring and alerting tools such as Nagios or SolarWinds can help in identifying and addressing potential causes of downtime. Integration Points [?] Integrate average cost of downtime data with incident and problem management systems to prioritize and address root causes effectively. Link with financial systems to understand the direct impact of downtime costs on the organization's bottom line. Change Impact [?] Reducing the average cost of downtime can lead to improved operational efficiency and cost savings, but may require upfront investments in technology and processes. Conversely, high downtime costs can affect employee productivity, customer satisfaction, and overall business performance.
KPI Library $189/year Navigate your organization to excellence with 17,411 KPIs at your fingertips. Subscribe to the KPI Library CORE BENEFITS 45 KPIs under IT Service Management 17,411 total KPIs (and growing) 362 total KPI groups 107 industry-specific KPI groups 12 attributes per KPI Full access (no viewing limits or restrictions) FlevyPro and Stream subscribers also receive access to the KPI Library. You can login to Flevy here.
Average Handle Time (AHT) More Details	The average amount of time taken by IT support staff to handle a ticket or incident from start to finish.	Indicates the efficiency of service desk agents and can highlight areas for process improvement.	Includes the total duration of the interaction, hold time, and follow-up related to IT service requests or incidents.	(Total Talk Time + Total Hold Time + Total Follow-Up Time) / Total Number of Calls
Trend Analysis [?] An increasing AHT may indicate growing complexity of IT issues or a lack of adequate training for support staff. A decreasing AHT could signal improved efficiency in resolving IT incidents or the successful implementation of automation tools. Diagnostic Questions [?] Are there specific types of IT incidents that consistently take longer to resolve? How does our AHT compare with industry benchmarks or best practices? Actionable Tips [?] Provide additional training or resources for IT support staff to handle complex incidents more efficiently. Implement automation tools for routine IT incident resolution to reduce manual handling time. Regularly review and update IT processes and workflows to identify and eliminate bottlenecks. Visualization Suggestions [?] Line charts showing the trend of AHT over time to identify performance shifts. Stacked bar charts comparing AHT by different IT incident types to pinpoint areas of improvement. Risk Warnings [?] High AHT can lead to user frustration and decreased productivity, impacting overall business operations. Consistently low AHT may indicate rushed or incomplete incident resolution, leading to recurring IT issues. Tools & Technologies [?] IT service management platforms like ServiceNow or Jira to track and analyze AHT for different incident types. Performance monitoring tools to identify potential bottlenecks in IT incident resolution processes. Integration Points [?] Integrate AHT tracking with incident management systems to prioritize and allocate resources effectively. Link AHT data with user satisfaction surveys to understand the impact of IT incident resolution on end-users. Change Impact [?] Reducing AHT can lead to improved user satisfaction and increased productivity, but may require additional resources or technology investments. Conversely, a consistently high AHT can strain IT resources and impact overall IT service quality and reliability.
Capacity Utilization Rate More Details	The extent to which IT capacity meets current and future demands.	Highlights how effectively IT resources are being used and can indicate when scaling is necessary.	Measures the percentage of computing or service capacity that is being utilized compared to total available capacity.	(Total Used Capacity / Total Available Capacity) * 100
Trend Analysis [?] An increasing capacity utilization rate may indicate that current IT capacity is not meeting the growing demands of the organization. A decreasing rate could signal improved capacity planning and management or a decline in demand for IT services. Diagnostic Questions [?] Are there specific IT services or resources that are consistently at or near full capacity? How does our capacity utilization rate align with projected growth in IT demands? Actionable Tips [?] Regularly assess and forecast IT capacity needs to proactively address potential bottlenecks. Implement scalable infrastructure and cloud-based solutions to adapt to fluctuating capacity requirements. Optimize resource allocation and utilization through workload balancing and virtualization technologies. Visualization Suggestions [?] Line charts showing capacity utilization rates over time to identify trends and potential capacity constraints. Stacked bar charts comparing capacity utilization across different IT services or departments. Risk Warnings [?] High capacity utilization rates can lead to performance degradation and increased risk of service disruptions. Insufficient capacity can hinder business operations and limit the organization's ability to innovate and grow. Tools & Technologies [?] IT capacity planning and management tools such as VMware vRealize Operations or Turbonomic for real-time capacity optimization. Cloud management platforms like AWS CloudWatch or Microsoft Azure Monitor for monitoring and scaling cloud resources. Integration Points [?] Integrate capacity utilization data with incident management systems to identify correlations between capacity issues and service disruptions. Link capacity planning with project management tools to align IT capacity with upcoming initiatives and resource requirements. Change Impact [?] Improving capacity utilization can enhance IT service delivery and support business growth, but may require initial investment in infrastructure and technologies. On the other hand, high capacity utilization rates can strain IT resources, impacting service quality and user satisfaction.
Change Failure Rate More Details	The percentage of changes that fail and cause an incident or a degradation of service after being applied to the live environment.	Assesses the quality and success of change management processes.	Tracks the percentage of changes that lead to failures in the IT environment.	(Number of Failed Changes / Total Number of Changes) * 100
Trend Analysis [?] An increasing change failure rate may indicate a lack of thorough testing or poor implementation processes. A decreasing rate could signal improvements in change management practices or better communication among IT teams. Diagnostic Questions [?] Are there specific types of changes that consistently result in failures? How does our change failure rate compare with industry benchmarks or best practices? Actionable Tips [?] Implement more robust testing procedures before deploying changes to the live environment. Enhance communication and coordination among different IT teams involved in change management. Provide additional training or resources for IT staff to improve their change implementation skills. Visualization Suggestions [?] Line charts showing the change failure rate over time to identify trends and patterns. Pareto charts to highlight the most common types of changes that result in failures. Risk Warnings [?] A high change failure rate can lead to service disruptions, increased downtime, and potential financial losses. Frequent change failures may indicate underlying issues in the IT infrastructure or lack of adherence to best practices. Tools & Technologies [?] Change management software like ServiceNow or Jira to track and analyze change success rates. Automated testing tools to ensure thorough and efficient testing of changes before deployment. Integration Points [?] Integrate change failure rate data with incident management systems to quickly address and resolve any service disruptions. Link with project management tools to better understand the impact of changes on ongoing projects and initiatives. Change Impact [?] Reducing the change failure rate can lead to improved service reliability and customer satisfaction. However, overly cautious measures to reduce the failure rate may slow down the pace of innovation and improvement in IT services.

Types of IT Service Management KPIs

KPIs for managing IT Service Management can be categorized into various KPI types.

Operational Efficiency KPIs

Operational Efficiency KPIs measure how effectively IT services are delivered and managed. These KPIs are crucial for identifying areas where processes can be streamlined to reduce costs and improve service delivery. When selecting these KPIs, ensure they align with your organization's overall operational goals and consider both short-term and long-term impacts. Examples include Incident Resolution Time and Change Success Rate.

Customer Satisfaction KPIs

Customer Satisfaction KPIs assess the end-user experience and satisfaction with IT services. These KPIs are essential for understanding how well IT services meet user expectations and where improvements are needed. Choose KPIs that provide actionable insights and can be directly linked to service improvements. Examples include Customer Satisfaction Score (CSAT) and Net Promoter Score (NPS).

Service Quality KPIs

Service Quality KPIs evaluate the reliability and performance of IT services. These KPIs help ensure that services are delivered at the agreed-upon quality levels and identify areas for improvement. Focus on KPIs that measure both the technical performance and the user experience. Examples include Service Uptime and Mean Time Between Failures (MTBF).

Financial Performance KPIs

Financial Performance KPIs track the cost-effectiveness and financial impact of IT services. These KPIs are vital for managing budgets, reducing costs, and demonstrating the value of IT services to stakeholders. Select KPIs that provide a clear picture of financial performance and can be used to make informed budgetary decisions. Examples include Cost Per Ticket and Return on Investment (ROI).

Compliance and Risk Management KPIs

Compliance and Risk Management KPIs monitor adherence to regulatory requirements and the effectiveness of risk management strategies. These KPIs are critical for ensuring that IT services comply with legal standards and mitigate potential risks. Prioritize KPIs that highlight areas of non-compliance and potential vulnerabilities. Examples include Compliance Rate and Security Incident Frequency.

Acquiring and Analyzing IT Service Management KPI Data

Organizations typically rely on a mix of internal and external sources to gather data for IT Service Management KPIs. Internal sources include IT service management tools like ServiceNow, BMC Remedy, and Jira, which provide detailed analytics on metrics such as Incident Resolution Time and Service Uptime. External sources, such as industry benchmarks and reports from consulting firms like Gartner and Forrester, offer valuable insights for comparing performance against peers.

Once data is acquired, the next step is to analyze it effectively. According to a report by Gartner, organizations that leverage advanced analytics tools can improve their IT service performance by up to 30%. Utilize data visualization tools like Tableau or Power BI to create dashboards that offer real-time insights into KPI performance. These tools help identify trends, anomalies, and areas for improvement quickly.

Advanced analytics techniques, such as predictive analytics and machine learning, can also be employed to forecast future performance and identify potential issues before they escalate. For instance, predictive analytics can help anticipate spikes in service demand, allowing for proactive resource allocation. A study by McKinsey found that organizations using predictive analytics in IT service management saw a 20% reduction in incident resolution times.

Regularly review and update your KPIs to ensure they remain aligned with your organization's evolving goals and industry standards. Engage stakeholders in the KPI selection and review process to ensure buy-in and relevance. Continuous improvement should be the mantra; use insights gained from KPI analysis to drive iterative enhancements in IT service management practices.

KPI Library

$189/year

Navigate your organization to excellence with 17,411 KPIs at your fingertips.

Subscribe to the KPI Library

CORE BENEFITS

45 KPIs under IT Service Management
17,411 total KPIs (and growing)
362 total KPI groups

107 industry-specific KPI groups
12 attributes per KPI
Full access (no viewing limits or restrictions)

FlevyPro and Stream subscribers also receive access to the KPI Library. You can login to Flevy here.

FAQs on IT Service Management KPIs

What are the most important KPIs for IT Service Management?

The most important KPIs for IT Service Management include Incident Resolution Time, Customer Satisfaction Score (CSAT), Service Uptime, Cost Per Ticket, and Compliance Rate. These KPIs provide a comprehensive view of operational efficiency, customer satisfaction, service quality, financial performance, and compliance.

How do I select the right KPIs for my IT Service Management?

Select KPIs that align with your organization's strategic goals and address key areas of IT service delivery. Engage stakeholders in the selection process and ensure the KPIs are actionable and measurable. Regularly review and update KPIs to keep them relevant.

What tools can I use to track IT Service Management KPIs?

Common tools for tracking IT Service Management KPIs include ServiceNow, BMC Remedy, Jira, Tableau, and Power BI. These tools offer robust analytics and visualization capabilities to help you monitor and analyze KPI performance in real-time.

How often should I review my IT Service Management KPIs?

Review your IT Service Management KPIs at least quarterly to ensure they remain aligned with your organization's goals and industry standards. Regular reviews help identify trends, areas for improvement, and ensure continuous alignment with business objectives.

What are some common pitfalls when managing IT Service Management KPIs?

Common pitfalls include selecting too many KPIs, focusing on metrics that are not actionable, and failing to align KPIs with strategic goals. Avoid these pitfalls by prioritizing a few key KPIs that provide the most value and regularly reviewing their relevance.

How can I improve my IT Service Management KPI performance?

Improve KPI performance by leveraging advanced analytics, engaging stakeholders in continuous improvement initiatives, and regularly reviewing and updating your KPIs. Use insights from KPI analysis to drive process improvements and enhance service delivery.

What is the role of predictive analytics in IT Service Management KPIs?

Predictive analytics can forecast future performance and identify potential issues before they escalate, allowing for proactive management. Organizations using predictive analytics in IT service management have seen significant improvements in incident resolution times and service quality.

How do I benchmark my IT Service Management KPIs against industry standards?

Benchmark your KPIs against industry standards by leveraging reports and benchmarks from consulting firms like Gartner, Forrester, and McKinsey. These benchmarks provide valuable insights into how your organization compares to peers and identify areas for improvement.

KPI Library

$189/year

Navigate your organization to excellence with 17,411 KPIs at your fingertips.

Subscribe to the KPI Library

CORE BENEFITS

45 KPIs under IT Service Management
17,411 total KPIs (and growing)
362 total KPI groups

107 industry-specific KPI groups
12 attributes per KPI
Full access (no viewing limits or restrictions)

FlevyPro and Stream subscribers also receive access to the KPI Library. You can login to Flevy here.

IT Service Management KPI Selection Guiding Principles

IT Service Management KPI Maintenance Guiding Principles

It is also important to remember that the only constant is change—strategies evolve, markets experience disruptions, and organizational environments also change over time. Thus, in an ever-evolving business landscape, what was relevant yesterday may not be today, and this principle applies directly to KPIs. We should follow these guiding principles to ensure our KPIs are maintained properly:

Scheduled Reviews: Establish a regular schedule (e.g. quarterly or biannually) for reviewing your IT Service Management KPIs. These reviews should be ingrained as a standard part of the business cycle, ensuring that KPIs are continually aligned with current business objectives and market conditions.

Inclusion of Cross-Functional Teams: Involve representatives from outside of IT Service Management in the review process. This ensures that the KPIs are examined from multiple perspectives, encompassing the full scope of the business and its environment. Diverse input can highlight unforeseen impacts or opportunities that might be overlooked by a single department.

Analysis of Historical Data Trends: During reviews, analyze historical data trends to determine the accuracy and relevance of each KPI. This analysis can reveal whether KPIs are consistently providing valuable insights and driving the intended actions, or if they have become outdated or less impactful.

Consideration of External Changes: Factor in external changes such as market shifts, economic fluctuations, technological advancements, and competitive landscape changes. KPIs must be dynamic enough to reflect these external factors, which can significantly influence business operations and strategy.

Alignment with Strategic Shifts: As organizational strategies evolve, evaluate the impact on Information Technology and IT Service Management. Consider whether the IT Service Management KPIs need to be adjusted to remain aligned with new directions. This may involve adding new IT Service Management KPIs, phasing out ones that are no longer relevant, or modifying existing ones to better reflect the current strategic focus.

Feedback Mechanisms: Implement a feedback mechanism where employees can report challenges and observations related to KPIs. Frontline insights are crucial as they can provide real-world feedback on the practicality and impact of KPIs.

Technology and Tools for Real-Time Analysis: Utilize advanced analytics tools and business intelligence software that can provide real-time data and predictive analytics. This technology aids in quicker identification of trends and potential areas for KPI adjustment.

Documentation and Communication: Ensure that any changes to the IT Service Management KPIs are well-documented and communicated across the organization. This maintains clarity and ensures that all team members are working towards the same objectives with a clear understanding of what needs to be measured and why.

By systematically reviewing and adjusting our IT Service Management KPIs, we can ensure that your organization's decision-making is always supported by the most relevant and actionable data, keeping the organization agile and aligned with its evolving strategic objectives.

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