book

Metric-based Service Management

Name: Metric-based Service Management
Author: Dimitry Isaychenko
ISBN: 9780113318377

by Dimitry Isaychenko

October 2022

Intermediate to advanced

182 pages

7h 14m

English

TSO (The Stationery Office)

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Metrics-based Service Management
Contents
List of figures
List of tables
Foreword
Introduction
Acknowledgements
1 Service management and measurements
1.1 Services
1.1.1 Definitions of a service and an IT service1.1.2 Service customer’s goals1.1.3 Value of services
Figure 1.1 Value creation and transfer chain
1.2 IT service management systemTable 1.1 Contribution made by service management processes to the achievement of service value

Figure 1.2 An IT service management system
1.3 Dimensions and methods of measurement and evaluation (1/2)1.3.1 Why measure and evaluate?1.3.2 What to measure and evaluate?1.3.3 How to measure and evaluate?Figure 1.3 The two types of practice required for organizing a process
1.3 Dimensions and methods of measurement and evaluation (2/2)
1.4 A word of caution
2 Measurement and evaluation systems
2.1 Measurement and metrics
2.2 Types of metrics
2.2.1 Metrics of effectiveness, conformance, efficiency, and productivityFigure 2.1 The four types of metrics2.2.2 Trailing and leading metrics
2.2.3 Combining metrics of different types
2.3 Methods of measurement
2.4 Key performance indicators
2.5 KPI scorecards
Table 2.1 A basic KPI scorecardFigure 2.2 KPI ratings and target trendsTable 2.2 Performance scorecard for three indicators
2.6 Forming a measurement and evaluation system
2.6.1 Step 1: Set the objective2.6.2 Step 2: Identify critical success factors2.6.3 Step 3: Select metrics and measurement toolset2.6.4 Step 4: Form a system of KPIsTable 2.3 KPIs for evaluating change management2.6.5 Step 5: Aggregate the measurement data2.6.6 Bringing it all togetherFigure 2.3 Forming a measurement and evaluation system
3 Measuring and evaluating service quality
3.1 Service level and quality
Table 3.1 Service levels and timeliness metric values for users of technical support service
3.2 The service action method
Table 3.2 Examples of service actionsFigure 3.1 Vertical and horizontal business process structuresTable 3.3 Service actions for IT enablement of personal loans
3.3 Customer requirements as the basis for service quality measurement
Table 3.4 Service requirements and quality metrics for IT enablement of personal loans
Table 3.5 Measurable quality characteristics of IT services
3.4 Method for building a service measurement and evaluation systemTable 3.6 Steps to build a measurement and evaluation system for ‘company website’ IT service
3.5 Service quality reporting
Table 3.7 KPI scorecard for ‘company website’ IT serviceTable 3.8 SLAM chartTable 3.9 SLAM chart with integral scores for all services
4 Measuring and evaluating service management processes
4.1 Incident and request management (1/3)
4.1.1 About the processFigure 4.1 Multiple teams working on an incident in succession4.1.2 Measuring the process effectivenessFigure 4.2 Effects of delay on the TPI indicatorFigure 4.3 Multiple teams with target processing times for incidents
4.1 Incident and request management (2/3)
4.1.3 Measuring the key practices of the process
4.1 Incident and request management (3/3)
4.1.4 Process measurement summary
4.2 Problem management (1/3)4.2.1 About the processTable 4.1 Measuring the incident and user request management process4.2.2 Measuring process effectivenessFigure 4.4 Problem management flow: unknown, open, and closed problems
4.2 Problem management (2/3)
Figure 4.5 Impact of problem resolution on PPI if no new problems are loggedFigure 4.6 Impact of new problems on PPI if existing problems are not resolvedTable 4.2 Statistical measurement of effectiveness of problem management process4.2.3 Measuring the key practices of the process
4.2 Problem management (3/3)
Figure 4.7 Links required for calculating IRPS4.2.4 Process measurement summary
Table 4.3 Measuring the problem management process
4.3 Configuration management (1/2)4.3.1 About the process4.3.2 Measuring process effectivenessFigure 4.8 Audit results for calculating cumulative CAA indicator4.3.3 Measuring the key practices of the process
4.3 Configuration management (2/2)
4.3.4 Process measurement summaryTable 4.4 Measuring the configuration management process
4.4 Change management (1/2)
4.4.1 About the process4.4.2 Measuring process effectivenessTable 4.5 ITSM practices for discovering changes that have caused critical or recurring incidentsTable 4.6 Change impact report
4.4 Change management (2/2)
4.4.3 Measuring the key practices of the process
4.4.4 Process measurement summary
Table 4.7 Measuring the change management process4.5 Service catalogue and service level management (1/2)4.5.1 About the processFigure 4.9 Service improvement directions for different service levels4.5.2 Measuring process effectivenessFigure 4.10 IT service quality report using LSQ and MSQ4.5.3 Measuring the key practices of the process
4.5 Service catalogue and service level management (2/2)
4.5.4 Process measurement summary
Table 4.8 Measuring the SLM process4.6 Why we chose these processes
5 Service management system dynamics
Table 5.1 Forrester’s four traps set by the nature of complex systems
5.1 Fragmented nature
5.2 Mutual influence
5.3 Introduction to system dynamics
Figure 5.1 The ‘events, patterns, system structures’ construct
5.4 System dynamics toolsetTable 5.2 Dynamic thinking and system thinking5.4.1 Dynamic thinkingFigure 5.2 Time graph (issue indicator tool)5.4.2 Causality and feedbackFigure 5.3 Simple path from problem creation to resolutionFigure 5.4 Cause-and-effect cycle in problem managementFigure 5.5 Causal loop diagram5.4.3 Accumulations and flowsFigure 5.6 Stock and flow diagram
5.4.4 Thinking endogenously
5.5 Metrics development and verification
5.6 System structures of processes (1/2)
5.6.1 Production lineFigure 5.7 Production line system structureFigure 5.8 System structure of a production line process (expanded)Table 5.3 Metrics based on system structure
5.6 System structures of processes (2/2)
Table 5.4 Metrics for change and incident management5.6.2 Knowledge discovery (a ‘lab’)Figure 5.9 Structure of a knowledge discovery process system (lab)Figure 5.10 Using lab system structure to develop and verify metrics
Table 5.5 Metrics identified and verified using lab system structure
5.7 Building a measurement and evaluation system (expanded method)Table 5.6 How system structures help with measurement and evaluation methods
6 Reports and dashboards
6.1 Types of reports
6.1.1 Operational report6.1.2 Analytical reportTable 6.1 Differences between operational and analytical reports
6.1.3 Operational vs analytical reports
6.2 Report design method6.2.1 Step 1: Who is the customer for this report?6.2.2 Step 2: What task will this report help them with?6.2.3 Step 3: Who will work with the report?6.2.4 Step 4: How will the report be used?6.2.5 Step 5: What data should the report contain?6.2.6 Step 6: How should the data be structured to support efficient decision-making?
6.3 A sample incident management dashboard (1/2)
6.3.1 Step 1: Who is the customer for this report?6.3.2 Step 2: What task will this report help them with?6.3.3 Step 3: Who will work with the report?6.3.4 Step 4: How will the report be used?6.3.5 Step 5: What data should the report contain?Table 6.2 Report usage scenariosTable 6.3 Reporting requirements for process management tools6.3.6 Step 6: How should the data be structured tosupport efficient decision-making?Figure 6.1 First screen of dashboardFigure 6.2 Data for usage scenarios 2 and 3
6.3 A sample incident management dashboard (2/2)
6.3.7 Summary
7 Employee performance evaluation system
7.1 Requirements for an employee performance evaluation system
7.1.1 Reasonable7.1.2 Comprehensive7.1.3 Credible7.1.4 Balanced7.1.5 Integrated7.1.6 Efficient
7.2 Personal performance agreement
Figure 7.1 Metrics selected for sales department manager exampleFigure 7.2 Evaluation system for sales department manager example
7.3 Personalized weights for process indicators
Table 7.1 Key performance indicators for evaluating problem management specialistsTable 7.2 Weights for evaluating process rolesTable 7.3 Role workload profiles
Table 7.4 Weights of process indicators for roles
7.4 Aggregation algorithms7.4.1 Product7.4.2 Geometric mean7.4.3 Rational function algorithmFigure 7.3 Rational function algorithm: first example
Figure 7.4 Rational function algorithm: second example
7.5 Aggregation colour-coding
Figure 7.5 Example of aggregation colour-coding
7.6 Summary
8 In conclusion
Glossary
References
Index (1/2)
Index (2/2)

Overview

This book’s title is ‘Metrics-based service management”, and we assume measurement is a fundamental component of, and essential for, effective decision making, communication, corrective action, growth, etc. However we wish to emphasise that measurement is not the sole tool at a manager’s disposal. Leadership, empathy, communication, process design, willpower, and delegation can help a manager with many professional challenges. All of these provide an opportunity for sound decision-making and motivation. Still, it is measurements that supply data for making and verifying decisions. Measurements pinpoint issues that can be tackled with process adjustments, and assure a reliable foundation for employee motivation. We are convinced, therefore, that a properly built measurement and evaluation system can be of a considerable use to organizations.

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