Description
A means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risk.
Measuring Success!
How to Develop and Implement an ITIL
Performance Management Framework
itSMTnz 2010 Conference
Auckland, New Zealand
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
Measuring Success! Session Objectives
• Define IT Performance Management & Measurement
• Understand the Balanced Scorecard and Use in IT Organizations
• Understand the Use of Key Performance Indicators in the ITIL
Framework
• Learn How to Develop and Utilize IT Scorecards to Improve Internal
Operations
• Understand and Apply IT Service Level Management
© 2010 IBM Corporation
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
How Does ITIL Define Service Management?
© 2010 IBM Corporation
• ITIL defines service as:
…a means of delivering value to customers by facilitating outcomes
customers want to achieve without the ownership of specific costs and risk.
• ITIL defines service management as:
…a set of specialized organizational capabilities for providing value to
customers in the form of services.
• IT organizations use ITIL to develop, acquire or improve their
- Processes
- Methods
- Functions
- Roles
- Activities
What is Performance Management and
Performance Measures?
© 2010 IBM Corporation
• Performance Management is defined alternatively as:
Performance management is the process whereby an organization
establishes the parameters within which programs, investments, and
acquisitions are reaching desired results.
Performance management is the process of assessing the progress made
(actual) towards achieving the predetermined performance goals (baseline).
• Performance Measures are quantitative and qualitative ways to characterize
and define performance. They provide a tool for organizations to manage
progress towards achieving predetermined goals, defining key indicators of
organizational performance and customer satisfaction.
Business depends on IT performance management
IT Performance Management is a Critical Tool
to Enable IT Service Management
© 2010 IBM Corporation
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
The Original Balanced Scorecard Concept
© 2010 IBM Corporation
The Original Balanced Scorecard Concept
Adapted to an IT Scorecard
© 2010 IBM Corporation
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
What is ITIL?
© 2010 IBM Corporation
• ITIL is a framework for service management. The processes described in
ITIL exist to improve efficiency (cost) and effectiveness (quality) of IT
services. This includes the planning, delivery, and support of those services.
• At its heart, ITIL is nothing more and nothing less than a collection of best
practices. It was born in the UK when the Office of Government Commerce
(OGC) asked a number of organizations how they perform IT services.
• ITIL is not:
– A “how to” manual
– Proprietary
– Vendor-specific
– The complete solution
ITIL V3 Processes and Functions
© 2010 IBM Corporation
ITIL V3 Processes Are Decomposed Into Nine
Components
© 2010 IBM Corporation
Sample ITIL Key Performance Indicators –
Change Management Process
© 2010 IBM Corporation
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
Development of IT Scorecards Requires
Determining What to Measure
© 2010 IBM Corporation
Universe of IT/ITIL
Performance
Measures
IT/ITIL
Performance
Measures You
Determine to
Use
IT/ITIL
Performance
Measures You
Can Currently
Capture
Development of Specific Key Performance
Indicators Requires Targets and Time Intervals
Baseline Current
Performance Level
Benchmark Target
Performance Level
Desired Time Interval to Achieve
Target Performance Level
IT Scorecards Should be Developed at
Different Levels of an IT Organization
CIO Scorecard
Division/Geographic
Scorecard
Branch/Team
Scorecard
Kaplan & Norton
Cascading
Scorecards
Development and Management of IT
Scorecards Requires a Mix of Resources
© 2010 IBM Corporation
Organizational Change Management Enables
Your IT Scorecard Implementation
© 2010 IBM Corporation
•Obtain Executive Sponsorship for your IT Scorecard Project
•Select and Empower a Cross-Functional Internal Team
•Consider use of an external consultancy, or individual expert
•Charter the Project with a defined timeline to completion, measures of
success, define key milestones, and define required organizational resources
•Develop a list of key stakeholders to the project, and reach out to these
various stakeholders
•Rigorously track the progress of the project, and take corrective action as
needed
5 Key Assumptions Supporting Your IT
Scorecard Development and Refinement
© 2010 IBM Corporation
•Create IT Scorecard unit or embed in existing IT Organizational Units
•Segment Application Development and Application Maintenance
performance measures
•Benchmark your current performance measures and design future state
•Include your Enterprise Architect or Data Architect in the development of
your IT Scorecard
•ITIL Conformant?
Your IT Scorecards Integrate with Your IT
Organization
© 2010 IBM Corporation
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
How Does ITIL Define Service Level
Management?
© 2010 IBM Corporation
To plan, co-ordinate, draft, agree,
monitor and report on Service Level
Agreements (SLAs), and to perform
the on-going review of service
achievements to ensure that the
required and cost-justifiable service
quality is maintained and gradually
improved. ¹
1. Wording from ITIL Service Delivery: Service Level
Management 4.1.4 - re-cast for tense
2. ITIL Service Delivery: Service Level Management 4.1.2
• "To maintain and improve IT Service
quality, through a constant cycle of
agreeing, monitoring and reporting upon
IT Service achievements and instigation
of actions to eradicate poor service - in
line with business or cost justification."
2
• To ensure that customer objectives are
translated into service-level objectives
that can be (and are) attained and
measured by the providers of
information technology
• To clarify the goals, commitments, and
attainment of service to both the
providers of information technology and
the customer
• To define remedies for the failure to
attain service level commitments.
Process Definition
Service Level Management Objectives
© 2010 IBM Corporation
Improving IT Service Quality Requires
Understanding Potential Performance Gaps
An IT Service Level Framework is Built Upon
Key Performance Indicators
© 2010 IBM Corporation
IT Service Level Management Process Flow
and Outputs
© 2010 IBM Corporation
IT Service Level Management is the Focal Point
for Performance Management and Reporting
© 2010 IBM Corporation
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
Contact Information
© 2010 IBM Corporation
•Bob Ryan
[email protected]
(703) 627-9814
http://www.thebusinessofitbook.com
•Tim Raducha-Grace
[email protected]
877-813-1428
doc_201536497.ppt
A means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risk.
Measuring Success!
How to Develop and Implement an ITIL
Performance Management Framework
itSMTnz 2010 Conference
Auckland, New Zealand
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
Measuring Success! Session Objectives
• Define IT Performance Management & Measurement
• Understand the Balanced Scorecard and Use in IT Organizations
• Understand the Use of Key Performance Indicators in the ITIL
Framework
• Learn How to Develop and Utilize IT Scorecards to Improve Internal
Operations
• Understand and Apply IT Service Level Management
© 2010 IBM Corporation
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
How Does ITIL Define Service Management?
© 2010 IBM Corporation
• ITIL defines service as:
…a means of delivering value to customers by facilitating outcomes
customers want to achieve without the ownership of specific costs and risk.
• ITIL defines service management as:
…a set of specialized organizational capabilities for providing value to
customers in the form of services.
• IT organizations use ITIL to develop, acquire or improve their
- Processes
- Methods
- Functions
- Roles
- Activities
What is Performance Management and
Performance Measures?
© 2010 IBM Corporation
• Performance Management is defined alternatively as:
Performance management is the process whereby an organization
establishes the parameters within which programs, investments, and
acquisitions are reaching desired results.
Performance management is the process of assessing the progress made
(actual) towards achieving the predetermined performance goals (baseline).
• Performance Measures are quantitative and qualitative ways to characterize
and define performance. They provide a tool for organizations to manage
progress towards achieving predetermined goals, defining key indicators of
organizational performance and customer satisfaction.
Business depends on IT performance management
IT Performance Management is a Critical Tool
to Enable IT Service Management
© 2010 IBM Corporation
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
The Original Balanced Scorecard Concept
© 2010 IBM Corporation
The Original Balanced Scorecard Concept
Adapted to an IT Scorecard
© 2010 IBM Corporation
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
What is ITIL?
© 2010 IBM Corporation
• ITIL is a framework for service management. The processes described in
ITIL exist to improve efficiency (cost) and effectiveness (quality) of IT
services. This includes the planning, delivery, and support of those services.
• At its heart, ITIL is nothing more and nothing less than a collection of best
practices. It was born in the UK when the Office of Government Commerce
(OGC) asked a number of organizations how they perform IT services.
• ITIL is not:
– A “how to” manual
– Proprietary
– Vendor-specific
– The complete solution
ITIL V3 Processes and Functions
© 2010 IBM Corporation
ITIL V3 Processes Are Decomposed Into Nine
Components
© 2010 IBM Corporation
Sample ITIL Key Performance Indicators –
Change Management Process
© 2010 IBM Corporation
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
Development of IT Scorecards Requires
Determining What to Measure
© 2010 IBM Corporation
Universe of IT/ITIL
Performance
Measures
IT/ITIL
Performance
Measures You
Determine to
Use
IT/ITIL
Performance
Measures You
Can Currently
Capture
Development of Specific Key Performance
Indicators Requires Targets and Time Intervals
Baseline Current
Performance Level
Benchmark Target
Performance Level
Desired Time Interval to Achieve
Target Performance Level
IT Scorecards Should be Developed at
Different Levels of an IT Organization
CIO Scorecard
Division/Geographic
Scorecard
Branch/Team
Scorecard
Kaplan & Norton
Cascading
Scorecards
Development and Management of IT
Scorecards Requires a Mix of Resources
© 2010 IBM Corporation
Organizational Change Management Enables
Your IT Scorecard Implementation
© 2010 IBM Corporation
•Obtain Executive Sponsorship for your IT Scorecard Project
•Select and Empower a Cross-Functional Internal Team
•Consider use of an external consultancy, or individual expert
•Charter the Project with a defined timeline to completion, measures of
success, define key milestones, and define required organizational resources
•Develop a list of key stakeholders to the project, and reach out to these
various stakeholders
•Rigorously track the progress of the project, and take corrective action as
needed
5 Key Assumptions Supporting Your IT
Scorecard Development and Refinement
© 2010 IBM Corporation
•Create IT Scorecard unit or embed in existing IT Organizational Units
•Segment Application Development and Application Maintenance
performance measures
•Benchmark your current performance measures and design future state
•Include your Enterprise Architect or Data Architect in the development of
your IT Scorecard
•ITIL Conformant?
Your IT Scorecards Integrate with Your IT
Organization
© 2010 IBM Corporation
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
How Does ITIL Define Service Level
Management?
© 2010 IBM Corporation
To plan, co-ordinate, draft, agree,
monitor and report on Service Level
Agreements (SLAs), and to perform
the on-going review of service
achievements to ensure that the
required and cost-justifiable service
quality is maintained and gradually
improved. ¹
1. Wording from ITIL Service Delivery: Service Level
Management 4.1.4 - re-cast for tense
2. ITIL Service Delivery: Service Level Management 4.1.2
• "To maintain and improve IT Service
quality, through a constant cycle of
agreeing, monitoring and reporting upon
IT Service achievements and instigation
of actions to eradicate poor service - in
line with business or cost justification."
2
• To ensure that customer objectives are
translated into service-level objectives
that can be (and are) attained and
measured by the providers of
information technology
• To clarify the goals, commitments, and
attainment of service to both the
providers of information technology and
the customer
• To define remedies for the failure to
attain service level commitments.
Process Definition
Service Level Management Objectives
© 2010 IBM Corporation
Improving IT Service Quality Requires
Understanding Potential Performance Gaps
An IT Service Level Framework is Built Upon
Key Performance Indicators
© 2010 IBM Corporation
IT Service Level Management Process Flow
and Outputs
© 2010 IBM Corporation
IT Service Level Management is the Focal Point
for Performance Management and Reporting
© 2010 IBM Corporation
Measuring Success! Overview Agenda
Use of Key Performance Indicators in ITIL 3
IT Performance Management and Measurement 1
Internal Use of IT Scorecards 4
Background of Balanced Scorecard 2
ITIL Service Level Management 5
Questions & Answers 6
© 2010 IBM Corporation
Contact Information
© 2010 IBM Corporation
•Bob Ryan
[email protected]
(703) 627-9814
http://www.thebusinessofitbook.com
•Tim Raducha-Grace
[email protected]
877-813-1428
doc_201536497.ppt