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Key Metrics You Should Use when Measuring IT Service Delivery

There is an old adage in business success that says, “You cannot manage what you fail to measure.”  This is a valid point when it comes to focusing on a set of metrics that provide the best solutions in IT service delivery.  The type of metrics which are used will depend upon the needs of the enterprise.  However there are key metrics which should be used across the board regardless of business objectives.

IT Spend Ratio


Some companies fail to balance IT spending between improved business processes and routine maintenance of IT infrastructures.  Expenditures for IT maintenance tend to outweigh spending on process improvements that contribute to increased profit margin, improved customer service and satisfaction, and shareholder value.  By using an IT spend ratio for measuring IT service delivery companies can ensure that spending is allocated to business process innovation and general maintenance of IT respectively.

Key Performance Indicators


To make sure a company reaches its goals in terms of IT service delivery Key Performance Indicators are used to define various steps which are required to meet specific goals and objectives. When establishing KPIs companies tend to define each Key Performance Indicator in small increments which ensures focus on each step that leads to the bottom line.


Critical Business Service Availability


Critical business services are processes that serve the customer base and other mission critical applications within the organization.  Critical business service metrics help you to determine the source of process malfunctions in order to initiate redundant systems to provide improved sustainability for critical business applications.  Business service availability is measured by conducting a review of business process requirements.  The measurement helps companies to ensure the best contingency strategies are in place and that they undergo periodic testing.

Cumulative Business Value of IT Investment


The cumulative business value is measured by determining the net present value (NPV) of each project in an IT portfolio and then organizing them according to their value.  The project with the most value being the highest and then the remaining projects sorted in descending order down to the project with the least NPV.

Operational Performance


Operational performance is an important measurement that helps companies to determine level of productivity, management effectiveness, customer service levels, and worker performance for specific activities. By using operational performance metrics you can measure the outcome for each completed project.

The operational performance metric also allows for measurement of current project performance for making improvements during the course of each task.  Other operational performance metrics include productivity tracking of departmental and company productivity and engineered standards which are established company-wide.


As a final note, investment in IT should always align with the business strategies for the company to ensure sustainability.  This means that your company IT portfolio should include measurements that ensure there is a correlation between IT investment and business objectives. If you want to improve IT service delivery while increasing your profit margin, contact Thrive Networks today for assistance with designing a strategy that is tailored to the needs of your business.