ITIL Service Strategy KPIs

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3 hours 49 minutes
Video Transcription
Welcome to the Idol framework. Updated course from Cyber Eri i t.
My name is Daniel Riley. I'm your subject matter expert on the idol framework.
In this video, we're going to be discussing our first set of KP eyes for service strategy.
But before we start on that, I'd like to cover a topic which is very important to keep in mind whenever you're talking about measuring performance indicators.
and that topic is good hearts. Laws pictured here kind of a funny way, but it's important to realize what's happening. So good hearts, law states. When a measure becomes a target, it ceases to be a good measure. And what that means is, through good intentions, you may set a way to measure quantitatively
how close to achieving your goal
is. So if you give somebody a task and measure them on, say, the number of males that they were able to produce, then you might get thousands of tiny nails which don't really fit your process. So then you might say, OK, well, let's change it to the weight of the nails.
Well, then you might get nails that air too
big and used too much material and again, they're not really fit for your process. So
this is generally called the Cobra effect, or the law of unintended Consequences due to a story that's related.
The Indian government wanted to reduce the number of Cobra's in the wild, and therefore they released a bounty on captured and dead Cobra's. They later found out that people were starting to raise Cobra's to turn in the bodies for the reward on. So they canceled the program,
and the people who were raising the Cobra's then released them into the wild. And in effect, they actually increased the population
rather than decreasing it. So it's an unintended consequence of, ah, best laid decision.
So there are ways that you can check for this in your data over time, using statistical methods, another's air about a bit outside of the course work that we're going to do. But if you're interested, you can do a little more research on checking for good hearts law.
The key thing that we're gonna want to remember is not to tire KP eyes to our performance incentives, and the reason is because then you make them a target and people will start to take advantage of them. They'll cease to be a good measure of the performance.
So now we have that. Either way, let's actually discuss what it is we'll be measuring.
So this one, the S I see is what I call it's the number of strategic initiatives that were launched through the service per folio management process. So each cycle of process released that we do today
through continuous delivery you'll still have a delivery cycle,
and in that we will measure The number of service is that we released,
which have a strategic plan attached
of that. We're gonna take a look at a percentage of those service is that were planned prior to the number that we implement them.
So as a percentage, we're going to take the number of new service is with a plan, and we're going to divide that by the total number of new service is and this is a constrained percentage that's going to be in the range between zero sum number and that number is less than one.
This percentage is the PS. This is the new service is that were launched without the strategic review. This is the inverse of the PMS And if you take these two numbers and you sum them, they should always equal one.
So again, this is going to be the number of unplanned service's
divided by the total number of new service is
Ah, and again, this is a constrained percentage that somewhere between zero and one,
we're going to keep a count of the number of new customers. And now you could argue that this K p I falls under business relationship management
or several other life cycle phases as well.
Uh, and you be correct. A lot of these will have effect throughout, and that's why they're in service strategy,
because that is the core in it informs all of our faces going forward,
and we're going to keep a count of the number of customers lost for the same reasoning.
Now, number of incidents responded to This is actually a total category. There are several different types of incidents, and you may want to break this out
to determine like customer incidences versus security incidences and things like that.
Now, when you're talking about measuring KP eyes, you're most likely going to see them in a form of a dashboard, and this is just an example of a dashboard for measuring different KP eyes in one place. You have some financial and some trending data here,
so we're also going to look at
for the financial management aspect of the percentage of overspending that's on the I T budget. And this is for all I t service is total the percent of overspend. I call it the O S. P. And this is going to be a monetary amount than money spent on I t
divided by the approved budget.
Now, this is not a constrained ratio.
we're going to also look at the percents of service is on a standardized budget plan. So if you look at the number of service is you have very similar to how many had a strategic review prior to being implemented. This looks at how many were given a standardized budget plan,
and the financial department has approved.
Now this is a constrained percentage. Um, it's going to be the number of budgeted service is over. The number of total service is,
and again a constrained between zero and one.
Now the percent of service is projects with a cost benefit. Analysis is another
form of financial planning, wherein you measure the expected cost of delivering service's versus the monetary or quantitative gains
of the of implementing it.
And then you would attach this on ah per project or per service
This is going to be the number of projects with a cost benefit analysis
divided by the total number of projects or service is, um
and this is again a constrained between zero and one.
So we're gonna look at the percent of service is with post inflammation station reviews. Um, once we move through the transition phase and were in service operation,
it is best practice to perform a post implementation review. Just tow talk about what's gone correct and what has what could be improved in the future.
So this is going to be the number of service is that you have, ah, post implementation review on divided by the total number of service is, and this is again a constrained percentage somewhere in the zero toe. One value where one of course represents 100% of your service is
it's have a post implementation review. Attached
percent of service is with overspend. Um, this is a per service measure
of the I t budget overspend. So you're gonna take the dollar amount spent on a service
divided by the dollar amount budgeted to deliver that service
and you will get a not constrained numbers. You could get somewhere, you know, double spending on your budget, and that would show up as a number like two point. Oh,
of course, you don't want to be double spending on your budget, but the math won't constrain it.
So the percent of cost optimization plans for service is, um this is the number of costs optimize service's, which generally comes again in the operational phase. The accounting management will propose optimization cz for expenses.
Uh, and this is a constrained metric. So some percentage of the number of service is
will have a copped off cost optimization plan on some other percentage Will not
Now moving into the business relationship management KP eyes. We're gonna want to keep account of the received customer complaints on this will generally come through in the form of a help desk.
Um, and they were going to take that and we're gonna have an account of the accepted customer complaints on, and we can keep a ratio of the number of complaints to the number of accepted complains. Then we're going to keep account of the customer satisfaction surveys that we have sent out.
And we're gonna want to take a percentage of those returns surveys so that we can monitor
how many of our requests for information are being fulfilled.
We're gonna take the count of the surveys that we've got and we're gonna divide that by the total service is out. Satisfaction surveys out.
Ah, and this is again a constrained percentage between zero and one where one means all of your surveys have been responded to, and zero of course means none.
So the mean customer satisfaction per service takes the service is listed and the customer satisfaction survey and applies the mean,
which is to sum up all of the answers and then divide by the number of answers
of that you've received.
So this is the average measured customer satisfaction for each service. Um, and you wouldn't want to include the standard deviation so that you can tell how many are clustered around the mean versus how distributed the opinions of your customers might be.
And of course, this is all done by self reporting on customer satisfaction surveys. So you do have to take it with a bit of a grain of salt.
And this is again an example of a business relationship management dashboard. This will generally be hosted inside of your
help desk software so that you can
tied to the rest of your ticketing system.
With that, we've come to the end of this video. I'd like to thank you for watching. And as always, if you have any questions, you can contact me on cyber harry dot i t my user name ist warder T w a r T E r.
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