Measuring Success in IT

It’s an issue nearly as old as corporate IT itself. How should an IT organization measure its success? Many IT metrics and key performance indicators have been branded as “industry best practices” over the last three decades. For example, the wealth of IT service desk metrics contained within the ITIL body of service management best practice guidance.

However, are all these IT metrics the best way to measure and report on IT success? For many organizations, the answer is “no.” This is because of the difference between the IT organization’s perception of its success versus what the rest of the business thinks of IT’s performance. It can be a significant difference.

There's a wealth of best practice KPIs and IT metrics out there for IT organizations, but are these still the best way to measure and report on IT success? For many organizations, the answer is 'no', and here @SysAid explains why. #ITSM… Share on X

Assessing traditional IT success measures

An IT organization’s performance is usually assessed across various quality, time, and cost parameters. This applies to both running the business (IT operations) and changing the business (development and projects). In terms of the former, this includes customer satisfaction, meeting service level agreement (SLA) speed targets, and budget management.

However, an IT organization can hit targets across all of these areas, but it is still not considered successful by the business as a whole, including its employees. This is because of what the IT industry has called “the watermelon effect.”

The watermelon effect explained

If you think of a watermelon, it has a green exterior, but cut it open, and it’s red inside. The same can happen with IT performance measurement. From the IT organization’s perspective, all of the performance metrics are green. It appears to be successfully achieving everything it needs to. However, from the business perspective, IT’s performance is not meeting expectations – this is the red hidden by the watermelon’s green exterior.

So, when considering IT’s success, it’s essential to address the possible root causes of the watermelon effect.

When considering IT’s success, it’s essential to address the possible root causes of the watermelon effect, says @SysAid. Find out more here. #servicedesk #ITSM Share on X

What causes the watermelon effect in IT?

Many factors can cause the difference between the IT and end-user perceptions of IT performance. However, an IT organization needs to understand those it can control and those it can’t. For example, unrealistic end-user expectations of IT performance – with IT capabilities perhaps limited by budgets – can likely only be managed rather than met.

However, many factors are within the IT organization’s control. A significant issue is that the IT organization measures what it thinks is important, not what’s important to end-users. For example, the IT service desk might measure and report the number of incidents handled per month. From the IT organization perspective, it’s a handy measure of success for the IT service desk. However, it sheds little light on how well end-user needs are being met by the corporate IT support capabilities.

The IT service desk is a good example of how IT metrics can contribute to the watermelon effect. The performance metrics often focus on how long tasks take but can ignore the outcomes of what’s done. IT performance measurement is also frequently taken at the point of supply. This can mean that end-users have a different experience of IT’s performance at their point of consumption.

Traditional IT performance metrics often focus on how long tasks take but can ignore the outcomes of what’s done, thus creating the 'watermelon effect'. So how can you do things differently? Here @SysAid explains. #servicedesk #ITSM Share on X

Ensuring that your IT organization measures its success correctly

While the watermelon effect is cause for concern, it’s not a case of ditching the IT performance management status quo entirely to bring in something new. Instead, IT organizations should take the opportunity to refocus on what matters most. This requires the greater involvement of business stakeholders in performance measure creation and use. 

Understanding which performance measures resonate with stakeholders and where performance targets must change is a relatively quick exercise. However, identifying new performance measures that better assess IT success will take longer. These will likely need to be business-aligned and measure the delivered value. One increasingly popular performance measurement approach that fits here is employee experience measurement, management, and improvement.

Finally, the IT organization’s performance metrics must not be considered the end goal. Instead, capabilities such as those delivered by business intelligence (BI) tools are needed to “better understand the numbers” and what the metrics mean. So that the data and insights can help drive improvements to IT operations and business outcomes.

What this means for your IT organization’s performance measures

When looking at an IT organization’s performance measures and the ability to recognize IT success (or not), it’s essential to have balance across the metrics portfolio. As mentioned earlier, IT service desk metrics tend to be overly operational, and this perspective alone is insufficient to measure IT support success.

When looking at an IT organization’s performance measures & the ability to recognize IT success (or not), it’s essential to have balance across the metrics portfolio. Here @SysAid looks at how you can achieve this. #ITSM #ServiceDesk Share on X

So, ensure that the metrics employed by your IT organization are balanced across these four Balanced Scorecard areas:

1. Operational efficiency – metrics such as availability, incident resolution time, and change success rates.
2. Service quality – metrics such as customer satisfaction (CSAT), although this is being superseded by employee experience metrics, first-contact resolution (FCR), and SLA compliance.
3. Financial performance – metrics such as cost per ticket, the return on IT investments and projects, and total cost of ownership (TCO).
4. Innovation – metrics such as the volume and speed of new IT service delivery and end-user uptake rates.

IT’s performance metrics can also relate to key business focus areas to better meet business needs and expectations and demonstrate success. For example:

• Security – the level of vulnerability patch management or the number of security incidents
• Compliance – audit results and the progress of remedial efforts
• Business impact assessment – how IT projects and improvement initiatives have positively impacted business operations and outcomes.

If you would like to learn more about better measuring success in IT, discover SysAid’s BI Analytics here.