Purpose: to support good decision-making and continual improvement by decreasing the levels of uncertainty

Data collected from:

• Products and services
• Practices and value chain activities
• Teams and individuals
• Suppliers and partners
• Organization as a whole

Measures are based on organizational objectives:

• Customer/market relevance
• Operational excellence

Use CSFs for each objectives and then define KPIs for each CSF (granularity and transparency)

1. Practice success factors (PSF)

Three PSFs for MR:

• Ensure measurements are driven by objectives
• Ensure quality and availability of measurement data
• Ensure effective reporting to support decision-making

1.1 Measurements driven by objectives Measurements only have value if they help managers achieve objectives Five steps to form a measurement and evaluation system: 1. Define the objectives – most important; what will the system be used for ? Effectiveness, conformance, efficiency, productivity smart/li> 2. Identify success factors: condition or characteristic that must be achieved for something to be successful (PSF) 3. Select metrics and measurement tools: Select metrics for identified objectives and success factors Ensure tool is capable 4. Form a system of KPIs: choose most important metrics and establish target values, trends, thresholds (ensure balance)

• 5. Aggregate measurement data, KPIs tend to be expressed in different forms or have different targets:
  • Transform into percentage ratings
  
  • Results can be grouped into zones
  
  • Create a performance scorecard (visualization to support decision making)
  • Other methods include weighted arithmetic average, multiplication, dynamic weights…

1.2 Ensuring quality and availability

Absolutely critical PSF: incomplete, inconsistent, or poor data leads to poor decision-making

Characteristics of high-quality data:

• Intrinsically good: accurate, objective, believable, data source has a good reputation
• Contextually appropriate: complete, relevant, timely, appropriate volume
• Clearly represented: understandable, consistent, interpretable
• Accessible: available to designated consumers as agreed

Practices that ensure quality data: monitoring and event management, service desk, all practices that keep records)

Practices that ensure accessibility of information: availability management, information security management

1.3 Effective reporting

To develop an effective report:

• Who is the report consumer ?
• What is the purpose of the report? What decisions is it supposed to support ?
• Who will generate and work with the report ?
• How will the report be used ?
• What data should the report contain ?
• How will the report data be structured and displayed ?
  • Grouped KPIs (logical blocks)
  • Aggregating KPIs (overall success)
  • Structure to identify bottlenecks by group data by region or service
  • Visualization options (tables, charts, diagrams…)

Go back to ITIL 4 Strategic Leader Certification Course: Practices to finish this chapter or to the main page ITIL 4 Strategic Leader Certification Course.