In a 2017 survey of 900 small and mid-size organizations, Kaseya reported that only half of the respondents admitted to IT using basic Service Level Agreements (SLAs). Previously, IT was necessary to keep the lights on. However, with digital transformation becoming a byword for modernization of businesses, it is crucial to measure the value you are deriving from IT departments. In this article at Jive, Hillary Gamblin explores the six essential KPIs you need to understand your IT department’s value addition.
Having a Strategy in Place for IT
CIO.com and Kaseya have created models that showcase the different roles IT departments play in today’s business. While CIO.com has categorized IT maturity levels as functional, transformational, and strategic, Kaseya has come up with an IT management maturity model that has six stages—reactive, efficient, proactive, aligned, and strategic. When your IT department is resolving IT problems in your organization, it is functional. When you are setting aside a budget to try out new technologies, the team is transforming your business. Finally, when you are analyzing how these new technologies align with your company objectives, you are thinking strategically about IT. As per the Kaseya study, only 10 percent of reactive IT departments measure their performance based on SLAs while 46 percent of strategic enterprises are actively using them.
This is a functional KPI which measures IT’s efficiency in performing basic responsibilities, like addressing a ticket raised in your organization’s IT service portal. Ticket response rates, resolution rates, employee satisfaction rate, etc. are some of the indicators.
Another functional KPI is crisis management wherein it showcases how fast and effectively IT is helping your organization handle emergencies. Mean Time to Recover (MTTR) and system or technology downtime are popular KPIs in this category.
First among the three transformational KPIs, security is a major concern for CEOs and directors. As data breach, identity thefts, and fraudulent transactions are rampant nowadays, this can well be categorized as something that can transform how businesses run.
Customer Relationship Management
Since businesses are customer-centric today, it is essential that your IT department innovate and scale up to latest technologies. Adam Dennison, senior vice president and publisher of CIO.com, reports that 76 percent of IT leaders are gaining knowledge about customer needs through frequent communication.
Cost and Time
If you are using the right technology, your IT department will save a lot of money and time. Rather than maintaining legacy systems and facing business downtime if your IT desk works on modern platforms, it will be easier for your enterprise resources to showcase their productivity.
For your IT departments to realize benefits, you must set a realistic budget. When ROIs turn in your favor, it will help earn respect from your business owners. Sri Adusumilli, vice president, CIO, and IT leader of Centric Parts StopTech Qualis, has come up with five more strategic KPIs that you can explore.
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