In this blog post
Rama Vani Periasamy
In an IT Organization, what is measured as success.? Predominantly it inclines towards the Key Performance Indicators, internally focused metrics, SLAs and other numbers. Why don’t we shift our performance reporting towards ‘value’ delivered to our customers along with the contractually agreed service levels? Because the success of any IT operation comes from defining what it can do to deliver value and publishing what value has been delivered, is the best way to celebrate that success.
It’s been a concern that people in service management overlook value as trivial and they often don’t deliver any real information about the work they do . In other words, the value they have created goes unreported and the focus lies only on the SLA driven metrics & contractual obligations. It could be because they are more comfortable with the conventional way of demonstrating the SLA targets achieved. And this eventually prevents a business partner from playing a more strategic role.
“Watermelon reporting” is a phrase used in reporting a service provider’s performance. The SLA reports depict that the service provider has adhered to the agreed service levels and met all contractual service level targets. It looks ’green’ on the outside, just like a watermelon. However, the level of service perceived by the service consumer does not reflect the ’green’ status reported (it might actually be ’red’, like the inside of a watermelon). And the service provider continues to report on metrics that do not address the pain points.
This misses the whole point about understanding what success really means to a consumer. We tend to overlook valuable data and the one that shows how an organization as a service provider is delivering value and helping the customer achieve his/her business goals.
The challenge here is that often consumers have underdeveloped, ambiguous and conflicting ideas about what they want and need. It is therefore imperative to discover the users’ unarticulated needs and translate them into requirements.
For a service provider, a meaningful way of reporting success would be focused on outcomes rather than outputs which is very much in tandem with ITIL4. Now this creates a demand for better reporting, analysis of delivery, performance, customer success and value created.
Consider a health care provider, the reduced time spent in retrieving a patient history during a surgery can be a key business metric and the number of incidents created, number of successful changes may be secondary. As a service provider, understanding how their services support such business metrics would add meaning to the service delivered and enable value co-creation.
It is vital that a strong communication avenue is established between the customer and the service provider teams to understand the context of the customer’s business. To a large extent, this helps the service provider teams to prioritize what they do based on what is critical to the success of the customer/service consumer. More importantly, this enables the provider become a true partner to their customers.
Taking service desk as an example, the service desk engineers fixes a printer or a laptop, resets passwords. These activities may not provide business value, but it helps to mitigate any loss or disruption to a service consumer’s business activities. The other principal part of service desk activity is to respond to service requests. This is very much an area where business value delivered to customers can be measured using ITSM.
Easier said, but how and what business value is to be reported? Here are some examples that are good enough to get started.
1. Productivity
Assuming that every time a laptop problem is fixed with the SLA, it allows the customer to get back to work and be productive. Value can be measured here by the cost reduction – considering the employee cost per hour and the time spent by the IT team to fix the laptop.
How long does it take for the service provider to provide what a new employee needs to be productive? This measure of how long it takes to get people set up with the required resources and whether this lead-time matches the level of agility the business requires equates to business value.
2. Continual Service Improvement (CSI)
Measuring value becomes meaningless when there is no CSI. So, measuring the cost of fixing an incident plus the loss of productivity and identifying and providing solutions on what needs to be done to reduce those costs or avoid incidents is where CSI comes into play.
Here are some key takeaways:
- Make reporting meaningful by demonstrating the value delivered and co-created, uplifting your operations to a more strategic level.
- Speak to your customers to capture their requirements in terms of value and enable value co-creation as partners.
- Your report may wind up in the trash, not because you have reported wrong metrics, but it may just be reporting of data that is of little importance to your audience.
Reporting value may seem challenging, and it really is. But that’s not the real problem. Keep reporting your SLA and metrics but add more insights to it. Keep an eye on your outcomes and prevent your IT service operations from turning into a watermelon!
References –
- https://www.axelos.com/news/blogs/april-2021/reporting-on-value-in-service-management
- https://www.axelos.com/news/blogs/february-2019/slas-of-future-measuring-outcomes-not-it-availity
- https://www.axelos.com/news/blogs/march-2019/itil-4-and-the-co-creation-of-fast-value
- https://www.axelos.com/news/blogs/april-2020/itil-4-and-value-co-creation
Rama is a part of the Quality Assurance group, passionate about ITSM. She loves reading and traveling.
To break the monotony of life and to share her interest in books and travel, she blogs and curates at www. kindleandkompass.com
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