KPI reporting in IT Operations

[AndyW]

Hi,

our company produces a lot of reports on different things. Most of the reports are pretty much effort to create whereas the result (reading and controlling the environment) is pretty low.

My boss asked me to establish a smart KPI reporting for our IT Operations key areas.
I wonder if somebody can point me in the right direction what is the best approach to establish such reporting (maybe there is an ITIL source also worth reading).
The reports from the past always had the problem that they were too detailed and nobody read through it.
What would be the best approach on this? And which key areas should defineately be included in such a reporting?

Thanks for your help,

[Diarmid]

The easiest approach must be to report to customers on what is in your SLA with them, and to report to your own management on the performance attributes that are needed to meet the SLA(s), the organizational matters that affect cost and quality and all matters that are identified in documented objectives policies ansd strategies. That way it should be clear what the purpose of the report is and who is interested in it and what it is needed for.

I know that doesn't help on the surface, but if you pursue it and find the links hard to make then you are finding weaknesses in your documented management system. If someone demands information not referenced clearly in any of these documents then they need to also specify its context and put it in the appropriate document.

Whereas, coming up with a list of plausible KPIs will lead to reports that are hard to use and have an unclear purpose. The plausible list may well be incomplete and acting on incomplete information is not always good (every KPI tends to skew reality and needs balancing).

Not to mention that if you report on something not subject to agreed and documented meaning then figures can look bad and can cause ructions without anyone knowing how they fit in the big picture.
_________________
"Method goes far to prevent trouble in business: for it makes the task easy, hinders confusion, saves abundance of time, and instructs those that have business depending, both what to do and what to hope."
William Penn 1644-1718

[AndyW]

ok thanks - thats a good recommendation.
Is there any from of information available on the web which points me in the right direction on how to setup such kind of KPI reporting.

as a first step I would particularly be interessted in the high level steps to take.

Cheers,

[Diarmid]

Andy,

my first para was an attempt to suggest the high level steps you might take.

I don't believe in generic KPIs for three reasons: firstly, although sounding plausible a particular measure may be of little use to you for any number of reasons; secondly, being generic, they lack a clearly defined meaning; and thirdly, because they sound plausible, they are likely to be plugged in without anyone properly thinking through their purpose.

another approach you can follow is to examine the purpose of each of your current reports. not that they are to provide information, but what that information is to be used for. You can then examine how well they meet that purpose, both in terms of the information they provide and in terms of the actions resulting from the provision.

Try withdrawing (or offering/threatening to withdraw) reports that do not seem to be used for anything and then deal with the clamour of "we need this" by asking what for. Then you can refine the reports for the purposes identified.

The underlying situation is this: "we need KPIs" is never the place to start. Rather "we need to know how well we are doing /have been doing such and such because ..." is the start point. That way KPIs emerge from requirements and have at least a chance of being useful.
_________________
"Method goes far to prevent trouble in business: for it makes the task easy, hinders confusion, saves abundance of time, and instructs those that have business depending, both what to do and what to hope."
William Penn 1644-1718

[AndyW]

ok thanks for your reply.
As said, right now I'm looking into a formal approach how to set up a KPI reporting.
Are there any specific steps I should check / take?