Traditional metrics-can be important but some needs to be replaced due to their doubtfulness
Change management, profit management and ROI needs to be considered when selecting KPIs
Metrics are essential as they indicate the performance of IT but it is largely affected by the digital transformation which has drastically changed the dynamics of IT jobs. Changes in these metrics have changed the assessment criteria of the IT teams.
Traditionally the evaluation criteria of the assessment of the IT teams were like uptime, MTTR, and management of service-level agreement. These were important and unavoidable metrics, which the IT team still records for their internal evaluation but are now not by the customers; either internal or external customers. This is because they tend to trust the internal evaluation of the IT teams. The customers have shifted their evaluation criteria to:
- Value creation
- Profit generation
- Innovative capability
- Change management
- Provide a better solution for the business problems
These evaluation criteria have raised the need to either alter or replace the KPIs to provide the appropriate results for analysis and future decision making. The KPIs should be aligned with the organization’s goals otherwise these metrics will be considered as vanity metrics. Some of the outdated key performance indicators are:
The need for the failure of tolerance is not a demand by the customers instead it is considered as the quality of the solutions which need to be fulfilled by the IT teams. The uptime depends on if the percentage of the availability is defined in the service level agreement or not. The declaration of the percentage makes the IT team bound and will be evaluated on this factor. It is essential for the IT team to keep the system functional and take measures from the planning phase to make sure maximum availability.
2. Mean Time to Repair (MTTR)
MTTR can be deceptive for the evaluators and IT team because it is related to a number of complaints the team receives. If these complaints are associated with the compensation then it is possible that the IT team tries to report the status as addressed or resolved even if it is not completely resolved by just manipulating the system. The major drawback of MTTR is that it neglects many important factors like downtime. MTTR gives importance to solving the problem as soon as possible rather than considering the importance of the problems. Sometimes the problems can be simple and be fixed in no time but sometimes the problems can be complicated and require more effort and time.
3. First Call Resolution
It is one of the doubtful metrics which fails to consider many factors and information. The success criteria of this metric depend on the severity and type of problems. There are some problems that can be fixed permanently in a single attempt but some require time to fix and can affect the basic structure of the system. IT team should incorporate the changes which will address the frequent customer problems and reduces the burden from doing repetitive tasks.
4. Budget and Schedule Adherence
It is a common metric used by the organizations, but the main issue is that it takes the already defined parameters into considerations rather than other important parameters that can be considered after the completion of the project. This metric restricts the IT team to follow the already defined budget and schedule and neglects the quality of the project. Following this metric doesn’t guarantee the success of the project.
The basic measure that needs to be done is to change the KPI to the better alternative if it doesn’t align with the type of project and IT standards that are defined by the business leaders. The change in the KPIs should be done by considering these important factors:
- The change should be incorporated after detailed consultation with the business leaders, customers, and detailed analysis.
- Build a consistent relationship with the business leaders and always ask for their opinion.
- Every alternate or new metrics should address business goals.
These are some of the important points that need to be considered if the metrics change is necessary as they help the executive evaluate the performance of the IT team and its solutions.