7 Steps to Creating Quality Key Performance Indicators (KPIs) - Part 3

Thought Leadership for
IT Service Management Professionals

7 Steps to Creating Quality Key Performance Indicators (KPIs) - Part 3

Posted by Phil Hellerman

Fri, Feb 20, 2015

Key Performance Indicators (KPIs) are the telemetry that underpins consistent, high quality service delivery. There are 7 steps to creating good KPIs. In today's post, Steps #4 and #5.

(This is the third part in a series - click here for Part 1 and Part 2).

Step #4: Construct new KPIs.

By communicating the list of known KPIs in the previous step, it may become apparent that new KPIs are required. Create new KPIs based upon the type of KPI that is desired. When created, add the new KPIs to the spreadsheet. The table below identifies different types of KPIs that may be created based upon the need and business strategy.

 

KPI_Blog_Table_2

 

Step #5: Quantify which KPIs are best based upon defined criteria.

The list of KPIs for the organization should be reasonable and actionable. Recall that the definition of KPIs suggests that only those metrics that are absolutely critical should be considered "Key Performance Indicators."

An easy method to identify your organization's KPIs is to further develop the spreadsheet created in Step #2 (identify and list all existing metrics and reports). Evergreen has created a simple spreadsheet scoring method that attempts to take the emotion out of the decision-making process and allows each KPI to be scored according to its value to the organization.

In the KPI Selector example below, the scoring indicates that the organization should create the KPIs lised below.

  • Average Incident Response Time
  • % of Overdue Incidents
  • % of Changes that Cause Incidents

All other KPIs are not as important to produce. And the organization can also identify those that are appropriate for future development.

 

KPI_Blog_Table_3

 

NEXT WEEK – Steps #6 and #7:

Execute and baseline the KPIs.

Review regularly at leadership meetings.

 

 

Service Portfolio 5 Easy Steps White paper

 

 

 

Topics: Service Catalog, ITIL Consulting, IT Service Catalog, IT KPI, ITSM Strategy, Employee Self-Service Portal, IT KPIs, Key Performance Indicators, ITIL Strategy

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