Service management metrics (at times also referred to as 'key performance indicators' or 'KPIs') are used to assess if the processes are running according to expectations.
Defining KPIs is above all about deciding what exactly is considered "successful" process execution.
Once this is established, suitable quantitative and qualitative metrics for the service management processes (the service lifecycle processes and the supporting processes) can be defined and subsequently measured. The process owners are then in a position to evaluate the quality of their processes, which in turn is the basis for process improvement.
The exact definitions of the metrics will vary depending on the nature of the service provider organization, so the key performance indicators contained in this wiki can only be suggestions.
Generally speaking, there is no shortage of recommendations for service management metrics. If further ideas are needed, the various service management frameworks like ITIL® [1], COBIT® [2] and USMBOK™ [3] may be consulted - but we advise using a focused set of metrics or KPIs that can be managed and acted upon in the long term.
A widely accepted principle holds that process metrics should be SMART:
Specific
Measurable
Achievable
Result-oriented
Timely.
Quantitative and qualitative metrics
When developing sets of process KPIs, a distinction is often made between quantitative metrics and qualitative metrics (although the line between the two may at times be blurred):
As the name suggests, quantitative metrics are typically straightforward measurements of volumes and frequencies (e.g. the number of service requests reported to 1st level support). Such metrics may not say much about the quality of the service request fulfillment process, but they can be useful for managing the resources required to fulfill service requests.
Qualitative metrics have a more direct relationship to successful process execution. For example, if a service provider aims to resolve a high percentage of incidents directly in 1st level support, the 1st-line resolution rate would be a suitable qualitative metric.
KPIs for lifecycle processes
How to measure the performance of the service lifecycle processes in the YaSM service management model? The following tables provide you with suggestions for quantitative and qualitative process metrics.
Metrics for the service strategy process
Process metrics: "Set the strategic direction"
Quantitative process metrics
Definition
Number of strategic reviews
Number of strategic reviews performed during the reporting period.
Number of strategic objectives
Number of strategic objectives defined following strategic reviews.
Number of strategic initiatives
Number of strategic initiatives launched during the reporting period.
Qualitative process metrics
Definition
Share of strategic objectives pursued through initiatives
Percentage of strategic objectives which are being actively pursued with defined strategic initiatives.
Number of successful strategic initiatives
Number of strategic initiatives which were successfully completed during the reporting period.
Number of new services introduced
Number of new or significantly changed services which were introduced following a strategic review.
Number of service improvements implemented
Number of service improvements implemented due to insights gained during strategic reviews.
Number of services retired due to strategic reviews
Number of services which were retired due to insights gained during a strategic review.
Number of process improvements implemented
Number of process improvements implemented due to insights gained during strategic reviews.
Number of new or significantly changed services designed during the reporting period.
Number of service implementation blueprints
Number of implementation blueprints produced for new or significantly changed services.
Number of requirements specifications
Number of requirements specifications produced for infrastructure items or other service components which were needed to provide new or significantly changed services.
Qualitative process metrics
Definition
Percentage of new services introduced using the service design process
Percentage of new or significantly changed services which were introduced using the documented service design process vs. new services introduced without using that process.
Number of renegotiated service requirements
Number of new or significantly changed services where the original requirements had to be renegotiated during the design phase, possibly grouped by reasons like "Economically unfeasible", "Technically unfeasible", ...
Number of services unexpectedly impacted
Number of other services which were unexpectedly found to be impacted by the introduction of new or significantly changed services, due to errors made during the service design phase.
Completeness of service implementation blueprints
Percentage of service implementation blueprints which covered all required aspects. There may be one metric for every aspect covered, for example "Percentage of blueprints covering capacity and performance aspects", "Percentage of blueprints covering availability aspects", ...
Percentage of designed services not delivering the expected outcomes
Percentage of new or significantly changed services that failed to deliver the expected outcomes due to errors made during the service design phase.
Number of new or significantly changed services implemented during the reporting period.
Number of tests and test cases
Number of tests and test cases carried out, possibly grouped by services to be implemented, test types, ...
Qualitative process metrics
Definition
Percentage of new services introduced using the service build process
Percentage of new or significantly changed services which were introduced using the documented service build process vs. new services introduced without using that process.
Duration of service implementation
Duration of service implementation projects from autho-rization of the service development project to confirmation of service readiness.
Percentage of automatic software distribution
Percentage of software components deployed by means of automated distribution.
Percentage of failed component acceptance tests
Percentage of service components which failed to pass acceptance tests.
Number of identified errors
Number of identified errors during testing, possibly grouped by services to be implemented, test types, ...
Time for error fixing
Average times until re-submission of fixed components after errors were found, possibly grouped by services to be imple-mented, component types, ...
Incidents caused by new service components
Number of incidents attributable to newly deployed service components, grouped by services and service components.
Percentage of implemented services not delivering the expected outcomes
Percentage of new or significantly changed services which failed to deliver the expected outcomes due to errors made during the service build phase.
Number of services which are constantly monitored in order to pro-actively avoid service interruptions or deficiencies in service quality.
Number of services where quality is measured and reported
Number of services whose quality levels are regularly measured and reported, as a basis for improving the services.
Number of generated significant events
Number of events generated by event monitoring systems, grouped by categories (e.g. events related to particular systems, events requiring human interaction, events triggering an automated response, ...).
Qualitative process metrics
Definition
Share of monitored services
Percentage of services which are constantly monitored.
Share of automated responses to events
Number of events where an automated response is triggered vs. the total number of events requiring a response.
Share of services with quality reporting
Percentage of services whose quality levels are regularly measured and reported.
Number of service incidents due to inadequate maintenance
Number of service incidents which could have been avoided by more adequate preventive maintenance.
Number of service level breaches
Number of service levels breached, possibly grouped by types of service level, services, clients, ...
Unused capacity
Percentage of capacity reserves at times of normal and maximum demand, possibly grouped by services, systems, ...
Number of improvement initiatives
Number of issues detected during service quality reporting which result in a service improvement initiative being started.
Process metrics: "Resolve incidents and service requests"
Quantitative process metrics
Definition
Number of incidents and service requests
Number of incidents and service requests logged by 1st level support, possibly grouped by priorities, categories, clients, ...
Number of major incidents
Number of incidents resolved by invoking the special procedure for major incidents.
Qualitative process metrics
Definition
Average initial response time
Average delay between the time a user reported an incident or service request and the time that 1st level support responded to that incident or request, possibly grouped by priorities, categories, clients, ...
Average resolution time
Average time for resolving incidents or service requests, possibly grouped by priorities, categories, clients, ...
Resolution within agreed time
Percentage of incidents and service requests resolved within the target resolution times specified in the service agreements, possibly grouped by priorities, categories, clients, ...
First time resolution rate
Percentage of incidents and service requests resolved by 1st level support during the first call, possibly grouped by priorities, categories, clients, ...
Number of standard incidents and service requests
Number of incidents and service requests which were resolved by applying known resolution methods (typically defined in incident models) , possibly grouped by priorities, categories, clients, ...
Incidents resolved remotely
Number of incidents and service requests resolved remotely (i.e. without carrying out work at the user's location), possibly grouped by priorities, categories, clients, ...
Incidents resolved pro-actively
Number of incidents reported and resolved pro-actively (i.e. incidents resolved before impacting business processes on the client side), possibly grouped by priorities, categories, clients, ...
Share of escalated incidents
Percentage of incidents where a hierarchic escalation occurred.
Average resolution effort
Average work effort for resolving incidents and service requests, possibly grouped by priorities, categories, clients, ...
How to measure the performance of the supporting processes in the YaSM service management model? The following tables provide you with suggestions for quantitative and qualitative process metrics.
Metrics for the SMS process
Process metrics: "Set up and maintain the service management system"
Quantitative process metrics
Definition
Number of documented processes
Number or service management processes which are documented in the process model.
Number of process reviews and audits
Number of formal process reviews and audits carried out during the reporting period.
Qualitative process metrics
Definition
Share of processes with defined service owners
Percentage of service management processes which are assigned to a process owner.
Share of processes with defined process metrics
Percentage of service management processes where process metrics are defined, measured and acted upon.
Share of processes with regular reviews
Percentage of service management processes which are subjected to regular process reviews or audits according to the process review plan.
Number of identified weaknesses
Number of weaknesses to be addressed by improvement initiatives which were identified during process reviews or audits, possibly grouped by processes.
Number of defined process improvement initiatives
Number of defined improvement initiatives, resulting from identified weaknesses during process reviews or audits, possibly grouped by processes.
Number of successful process improvement Initiatives
Number of process improvement initiatives which were completed successfully during the reporting period, possibly grouped by processes.
Number of changes to the service management policies
Number of changes to the service management policies resulting from process reviews or audits, possibly grouped by policies.
Number of services managed through the service portfolio, grouped by customer and (internally or externally supplied) supporting services.
Number of new services
Number of services added to the service portfolio during the reporting period.
Number of changed services
Number of services in the service portfolio where new versions have been introduced.
Number of retired services
Number of services that were retired.
Qualitative process metrics
Definition
Services documented in the services portfolio
Percentage of services offered by the service provider which are documented in the service portfolio.
Services defined by service definitions
Percentage of services in the service portfolio which are defined by authorized service definitions.
Services covered by agreements
Percentage of services in the service portfolio which are covered by agreements (i.e. customer services covered by customer service agreements and supporting services covered by operational or external service agreements).
Number of detected service inconsistencies
Number of inconsistencies between service definitions detected during service portfolio reviews (especially inconsistencies between customer services and supporting services).
Number of risks managed through the register of security risk.
Number of security policies
Number of underpinning security policies maintained and published by the security manager.
Number of security alerts
Number of security alerts issued by the security manager, possibly grouped by type of security threat, services affected, infrastructure components affected, ...
Qualitative process metrics
Definition
Percentage of security risks with risk responses
Percentage of identified security risks which are covered by suitable risk responses.
Number of implemented security improvements
Number of security improvements which were implemented in response to newly identified security threats.
Time for implementation of risk responses
Average duration from the identification of a new security risk to the implementation of a suitable response.
Number of security breaches
Number of detected security breaches, possibly grouped by type of security breach, services affected, infrastructure components affected, ...
Number of security incidents
Number of reported security incidents, possibly grouped by incident priority, services affected, infrastructure components affected, ...
Number of security-related service downtimes
Number of security incidents causing service s to be unavailable.
Number of security training sessions
Number of security training sessions carried out, possibly grouped by type of training, target group, ...
Number of security tests
Number of security tests carried out, possibly grouped by type of test, security systems or mechanisms tested, ...
Number of identified issues during security tests
Number of identified issues during security tests to be addressed by security improvement initiatives.
Metrics for the service continuity management process
Process metrics: "Ensure continuity"
Quantitative process metrics
Definition
Number of managed critical events
Number of (types of) critical, disruptive events for which prevention measures are deemed necessary and which are managed through the register of managed critical events.
Number of continuity plans
Number of continuity plans maintained by the continuity manager.
Qualitative process metrics
Definition
Percentage of managed critical events covered by continuity arrangements
Percentage of identified and managed critical, disruptive events which are covered by suitable continuity plans.
Number of implemented continuity arrangements
Number of continuity arrangements which were implemented in response to newly identified threats from critical events.
Time for implementation of continuity arrangements
Average duration from the identification of a new threat from a critical event to the implementation of a suitable response.
Number of critical events
Number of critical events occurred during the reporting period.
Number of critical events with continuity arrangements in place
Number of critical events occurred during the reporting period for which a suitable continuity plan was in place.
Number of continuity training sessions
Number of continuity training sessions carried out, possibly grouped by types of training, target groups, ...
Number of continuity tests
Number of continuity tests carried out, possibly grouped by types of continuity arrangements, ...
Number of issues identified during continuity tests
Number of issues identified during continuity tests to be addressed by continuity improvement initiatives.
Number of compliance requirements managed through the compliance register, possibly grouped by types of requirements (e.g. legal, ISO standard, internal policy, ...).
Number of added compliance requirements
Number of compliance requirements added to the compliance register during the reporting period due to new laws or regulations, possibly grouped by types of requirements.
Number of removed compliance requirements
Number of compliance requirements removed from the compliance register during the reporting period, possibly grouped by types of requirements.
Qualitative process metrics
Definition
Percentage of compliance requirements with controls in place
Percentage of compliance requirements where conformity is ensured through suitable controls or mechanisms, including defined responsibilities for their implementation and operation.
Percentage of compliance requirements covered by reviews
Percentage of compliance requirements which are covered by regular compliance reviews and audits.
Number of compliance reviews
Number of compliance reviews and audits carried out.
Number of issues identified during compliance reviews
Number of non-compliance issues identified during compliance reviews and audits, which are to be addressed for example by modifications to processes or services.
Number of issues reported outside compliance reviews
Number of non-compliance issues reported outside of formal compliance reviews and audits.
Time for fixing compliance issues
Average time lag between identification and resolution of non-compliance issues.
Total number of staff employed by the service provider organization.
Number of skills
Number of skills managed through the skills inventory.
Number of staff entering the organization
Number of employees who joined the service provider organization during the reporting period.
Number of staff leaving the organization
Number of employees who left the service provider organization during the reporting period.
Qualitative process metrics
Definition
Number of skills added
Number of skills added to the skills inventory during the reporting period.
Number of skills removed
Number of skills removed from the skills inventory during the reporting period.
Number of skill development measures
Number of measures carried out through a skills development plan to improve the skills of individual employees, possibly grouped by type of skill, type of training, ...
Share of skills covered by development plans
Percentage of skills in the skills register for which training and education is managed through a skills development plan.
Number of external suppliers, possibly grouped by types, status, ...
Number of preferred suppliers
Number of external suppliers with "preferred supplier" status.
Number of new suppliers
Number of suppliers added to the supplier portfolio during the reporting period.
Number of terminated supplier agreements
Number of suppliers whose contracts were terminated during the reporting period.
Number of purchase orders
Number of purchase orders processed, possibly grouped by product categories, purchase order types (e.g. orders for non-standard products and services, orders for standard products), ...
Qualitative process metrics
Definition
Share of external services covered by agreements
Percentage of externally supplied supporting services which are covered by external service agreements and corresponding service definitions.
Share of preferred suppliers
Share of goods and services procured from external suppliers with "preferred supplier" status, as a percentage of the value of all purchase orders.
Share of reviewed agreements
Percentage of supplier agreements which were reviewed for continued relevance during the reporting period.
Number of supplier meetings
Number of formal supplier meetings held during the reporting period.
Number of detected contract breaches
Number of contract breaches, for example detected during supplier review meetings or service reviews.
Time for issuing purchase orders
Average time between receiving internal purchasing requests and sending out purchase orders to suppliers, possibly grouped by product categories, purchase order types, ...
[1] ITIL® is a registered trade mark of AXELOS Limited.
[2] COBIT® is a registered trademark of ISACA (Information Systems Audit and Control Association).
[3] USMBOK™ is a registered trade mark of Virtual Knowledge Solutions International Incorporated (VKSII).
By: Andrea Kempter and Stefan Kempter , IT Process Maps.
and Stefan Kempter 
