Slides belonging to a BrighTalk presentation given by David Smith, president of Micromation. How to Implement Measurements to drive value Improve the "Business of IT" by using a measurement framework and metrics that matter most. Metrics are important to management. What's not measured cannot be managed. But what should be measured, why and how? If you're experiencing any of these symptoms, then this session is for you: • not sure what to measure • not sure how to measure • IT metrics don't seem to support business goals • too busy fighting fires to become more proactive • measure too many things already • business/IT goals not measured • priorities focus on noise vs. what's important • customer complaints drive improvements • efficiency, effectiveness, quality not well understood • reduced visibility resulting in loss of control • not sure who needs what level of detail Learning Objectives: Metrics validate your IT strategy and vision; provide direction with targets and metrics; justify changes with a means to gauge value-realized; signal when to intervene with corrective actions. Hear case studies and examples that help you improve alignment, meet compliance and drive service excellence. Learn the secrets of how measurement frameworks works and take away a roadmap with actionable steps. Let's get IT started.

1. How to Implement
Measurements to drive value
Presenter – David A Smith
Date – April 19th 12pm EST
New Jersey Jersey Local Interest Group
New Local Interest Group

2. Your Speaker
Credentials: President of
Micromation Inc., TCO Expert, ITIL
V3 Expert, ISO20000 Consultant,
Author “Implementing Metrics for
ITSM - itSMF”, “ITSM Global Best
Practices Volume 1 - itSMF”
Contact:
david.smith@micromationinc.com
Bus (705) 792-5690
David A. Smith Cell (705) 718-6062
New Jersey Local Interest Group

3. The problem?
 Not sure what to measure
 Measure too many things already
 Business/IT goals not measured
 Priorities focus on noise vs. what's important
 Customer complaints drive improvements
 Efficiency, effectiveness, quality not well
understood.
New Jersey Local Interest Group

4. The solution
 Metrics are important to management. What's not
measured cannot be managed. But what should
be measured, why and how?
 Improve the "Business of IT" by using a
measurement framework and metrics that matter
most.
New Jersey Local Interest Group

5. What are metrics about?
A “metric” is just another term for measure. Metrics are an important part
of the management system that steers and controls IT in the desired
direction to optimize value.
Align business/IT objectives
– Accounting of IT processes &
deliverables
– Inform stakeholders
– Understand issues
Achieve compliance
– Comply with IT Operations Strategy
– Meet ISO20000,CobiT, other
– Identify Critical success factors
– Minimize interruptions
Operational excellence
– Measure, control, manage,
maximize, value creation
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6. Measurement Framework
A measurement framework helps to validate, direct, justify and
intervene when necessary to meet your goals and objectives.
Goal:
– Provide a measurement
framework to align IT with the
business objectives and create
value through continual
improvements.
Objectives:
Source: Implementing Metrics for ITSM
– To align IT with business
objectives
– To help maintain compliance
requirements for business
operations
– To drive operational
efficiencies, effectiveness and
quality

7. Measurement lifecycle
Provides a basis for management decisions and continual improvement.
Identify:
Vision 1. Define what you
Strategy should measure
Tactical Goals
Operational Goals
Plan
7. Implement 2. Define what you
corrective action can measure
Source: ITIL® Continual Service Improvement
Act Goals Do
6. Present and use the 3. Gather the data
information, Who? How? What?
assessment summary, Integrity of the data?
action plans etc. Check
5. Analyze the data
Relations? Trends? 4. Process the data
Targets met? Causes? Frequency? Format?
Corrective action? System? Accuracy?
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8. Goal alignment
Metrics are aligned to support goal/objectives to ensure prioritization of improvements
Theme 1 Theme 2 Theme n..
Vision/Mission
Benefits
Goals
Expected Outcomes
Top down design
KGI KBI
Key Goal Indicator Key Benefit Indicator
Objectives
Source: ITIL® Continual Service Improvement
Verification
Bottom up build
CSF
Critical Success Factor
Actions
KPI
Key Performance Indicator
KPM
Ask: Key Performance Metric
• “What actions are required?” KFM
• “How will actions be verified?” Key Fact Metric
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9. What to measure
Strategic Framework links strategic
Key Goal Indicators objectives from the top with
•Agile measurement/metrics from the
•Optimized bottom.
• Available
• Responsive Critical Success Factors
Business Impact
• Secure
Key Performance • Efficient • Progress
Indicators • Effective • Utilization
Source: Implementing Metrics for ITSM
• Quality • Compliant
Key
• FCR Rate • Call • MTBI
Performance
• MTTR abandon • Cost/call
Metrics
• Failed RFC • Cycle time • Cus. Sat.
Key Fact
• RFCs • Incidents • MACs • Wait
Metrics
• FTEs • Problems • Lines of time
• CIs • Breaches code • Downtime
Tactical
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10. Example: service goals
“What actions are required to improve service levels?” “How will actions be
verified? - Increased productivity & satisfaction”
Source: Implementing Metrics for ITSM
New Jersey Local Interest Group

11. Case Study 1 - Bus/IT Alignment
Getting into “The Zone” of high value service delivery.
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12. Background
 Problem
– Perception of poor service quality
– Belief that applications were unreliable
 Approach
– Devise measurement framework to promote service excellence
– Use existing tools where possible
– Multi-level management dashboards/ scorecards
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13. What’s important?
Stakeholder “perspectives”
 Proposed perspectives or stakeholder view points that need measurements
with themes:
– Customer view – value for money (i.e. business impact, satisfaction
themes, cost)
– Internal IT view – internal IT performance ( i.e. service level
achievements, effectiveness and performance themes)
– Financial – cost effectiveness themes (i.e. efficiency or unit costs)
Source: Micromation Inc.
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14. Framework:
“The Zone” of high value
Four measurement themes were recommended to achieve balance for high value
service delivery “The Zone” .
The effect IT Service has on Number, type or level of
users or customers. For service delivered to Users
example, measuring Customer IT Services. For example,
Service Level
productivity loss, overtime Impact issues resolution, service
hours, backlogs, lost availability, performance
revenues, SLA breaches throughput, system
etc. reliability.
The
IT Services use their
Zone resources, often
Quality of services
Source: Micromation Inc.
expressed as a cost per
delivered to customers or
unit of service or the
users. i.e. free from
defects. User volume of output per
Cost staff member. For
User’s experience of Satisfaction/
outages and performance Effectiveness example, the average
i.e. frequency, duration,
Experience cost per User per year,
average cost per
scope.
transaction.
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15. Themes & metrics
Theme General Examples Specific Example
Customer impact 1. Revenue / Sales Loss 1. Incident counts/severity scored by business impact index
measures 2. Disruption / Productivity Loss 2. Hidden cost per user
3. Good Will / Financial Loss
4. Health / Safety Issues
5. Legal / Compliancy Risks
Service level 1. Maintainability 1. Duration of failures (MTTR)
measures 2. Reliability 2. Mean time between system incidents (MTBSI), frequency of
3. Availability failure, incident volumes
4. Performance 3. Mean time between failures (MTBF), Uptime, % Available, %
Unavailable
4. Mean time response time (MTRT).
User satisfaction / 1. Satisfaction 1. End user satisfaction score
experience 2. Availability experience 2. Application % availability monitoring
measures 3. Performance experience 3. Application transaction MRTR monitoring
Source: Micromation Inc.
Cost 1. Cost per X 1. Cost % per portfolio
effectiveness 2. Time per X
measures 3. Resources per X
4. Transactions per X
5. Users per X
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16. Metrics tree
Determine the metrics hierarchy to be reported on.
Source: Micromation Inc.
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17. Zone dashboard
myKPI Designer  Micromation 2010
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18. Customer impact
myKPI Designer  Micromation 2010
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19. Service levels
myKPI Designer  Micromation 2010
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20. Service map
myKPI Designer  Micromation 2010
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21. Satisfaction/experience
myKPI Designer  Micromation 2010
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22. Cost effectiveness
myKPI Designer  Micromation 2010
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23. Outcome
 Services rolled out by portfolios
 Leveraged existing application performance
monitoring tool investments
 Multi-dimensional views provided transparency for
complex service delivery chains
 Problems identified and resolved efficiently/
effectively minimizing business impact and
maximizing customer satisfaction
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24. Case Study 2 - Bus/IT
Compliance
Efficient, effective and quality processes.
24

25. Background
 Problem
– Over SOXified
– Change management process resource intensive
– Strict enforcement to meet corporate compliance
 Approach
– Mapped out process
– Measured efficiency, effectiveness, quality and bottle
necks
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26. Change management metrics
 CM001 % Unsuccessful - failed changes  CM023 # Accepted RFCs
 CM002 % Rejected RFCs - of total  CM024 # Failed or timed-out changes
 CM003x # Unauthorized changes made  CM025 # Successful - closed changes
 CM004 Change backlog  CM026 # Standard changes accepted
 CM005x Outage incident count  CM027 # Normal changes accepted
 CM006x # Failed changes w/o back-out plan  CM028 # Post Reviewed changes
 CM007 % Successful - changes on time  CM029 # Rejected RFCs - insufficient change data
 CM008 % Changes causing issues (incidents)  CM030 # Changes - causing issues (incidents)
 CM009x # CAB items not actioned on time  CM031 # Successful - closed on time
 CM010 # Emergency (Latent) changes  CM032 # Successful - closed but late
 CM011x # Changes not delivering exp. results  CM033x Change labour hours - all changes
 CM012x CM Customer Satisfaction  CM034x Change labour hours - standard
 CM013 Avg. Hrs. per Change  CM035x Change labour hours - normal
 CM014 Avg. Hrs. per Standard Change  CM036x Change labour hours - emergency (Latent)
 CM015 Avg. Hrs. per Normal Change  CM037 % Standard changes
 CM016 Avg. Hrs. per Emergency (Latent) Change  CM038x CM maturity level
 CM017 Avg. cycle time - all changes (days)  CM039 # Completed RFCs
Source: Micromation Inc.
 CM018 Avg. cycle time - standard (days)  CM040 % Minor changes
 CM019 Avg. cycle time - normal (days)  CM041 % Major changes
 CM020 Avg. cycle time - emergency/latent (days)  CM042 % Significant changes
 CM021 # Logged RFCs  CM043 RFCs logged as % of baseline
 CM022 # Rejected RFCs - Initial filtering  CM044x RFC approvals as % of baseline
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27. Dashboards
Dashboards helped align IT with the business goals.
myKPI Designer  Micromation 2007
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28. Scorecards
Scorecards made it easier to concentrate on what matters.
myKPI Designer  Micromation 2007
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29. Process Map Scorecards
Process map scorecards provided the instrumentation
necessary to control the process
myKPI Designer  Micromation 2007
29 New Jersey Local Interest Group

30. Cause & Effect Relationships
Root cause analysis tools made it easier to spot danger in
time to correct it.
myKPI Designer  Micromation 2007
New Jersey Local Interest Group

31. Outcomes
 Observations
– All change approvals treated equal – overkill
– Too much effort on low priority changes that had no
impact on compliance
 Improvements
– Preapproved changes stream
– Prioritization schemes aligned for compliance
– Efficiency and effectiveness improved with focus on high
risk changes
– Lowered overtime costs and stress on organization
– Compliance requirements still met
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32. Roadmap/ Activities
Each phase is comprised of four main activities:
Plan Design Implement Optimize
•ITSM RAP Session •Administration process, •Gather the data •Review/assess
•ITSM Quick Start metrics DB •Process the data •Measurement program
•Kickoff meeting & •Reporting process, •Analyze the data goals, objectives are
orientation dashboards, •Present and use the being met
•Vision/goals/objectives scorecards, reports information •Completeness,
•Review what exists •Collection & monitoring •Implement corrective accuracy, validity, that is
•Assign roles and process actions quality of information
responsibilities •Analysis process •Transfer control to •External validation of
•Resourcing •Tuning process operational staff key metrics,
requirements •Improvement process benchmarks
•Plan the approach & •Assess automation & •Improve
Source: Micromation Inc.
roadmap reporting tool options •Update the core
•Initiate communications metrics, targets,
plan thresholds
•Definition of themes/ •Add new or improved
perspectives processes when
•Define what should be appropriate
measured •Define scope for next
•Assess what can be phase
measured
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33. Take the first step for free
 Meet with us for 2 hours to see how metrics and ITSM
accelerators can improve your IT business.
 In the ITSM RAP session we will:
1. Determine your best ITSM value proposition for
improving your IT business i.e. cost/value, quality,
responsiveness, compliance
2. Assess the health of the key processes that enable
your ITSM value proposition
3. Determine metrics that matter most to support the
desire outcomes
4. Demonstrate the features, advantages and benefits of
our ITSM QuickStart accelerator approach
5. Propose a prescriptive solution to enable your ITSM
value proposition
ITSM RAP Session
sponsored by:
Sign up: www.micromationinc.com
New Jersey Local Interest Group

34. Today’s Challenge
– Cost Pressure
– Risk Mitigation
About Us – Maturity
(705) 792-5690 – Value of IT
david.smith@micromationinc.com – Regulatory Compliance
http://www.micromationinc.com/ – IT Governance
Services Outcome
– Metrics Training/Consulting – Reduce/Avoid Costs
– ITIL Maturity Assessment – Mitigate Risks & Threats
– IT Benchmarking – Optimize Effectiveness
– IT Performance Improvements – Increase the Value of IT
– TCO, IT Health Check, ROI/CBA – Meet Compliance
– ITIL, CMMI, ITAM, SAM, ISO – Improve Governance

35. Thank you for attending this
session!
35 New Jersey Local Interest Group