The Measuring Process
Measuring performance should be viewed as a process involving many key and inter-related steps. Often,
IT managers fail to establish an effective way to address each step, or don't fully understand or
appreciate the significance of each one within an overall process. The article below provides a detailed
description of a seven-step measurement process, which includes a close look at how to link key
performance indicators and results back to operational, tactical and strategic level goals.
The Measuring Process
Figure 1.1
Seven-Step Process To Measurement
The seven steps of measurement are used as follows:
1. Define What You Should Measure
Based on the goals of the target audience (operational, tactical, or strategic) a process owner
needs to define what you should measure linking these back to organizational goals. To do this,
map the activities of the process you need to measure. Then consider what measurements
would indicate that each activity is being performed consistently and can determine the health of
the process.
2. Define What You Can Measure
Identify the measurements you can provide based on existing tool sets, organizational culture and
process maturity. Note there may be a gap in what you can measure vs. what you should
measure. Quantify the cost and business risk of this gap to validate any expenditures for tools.
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3. Gathering The Data
Gathering the data is a repetitive set of tasks. Consider automation, or assign the tasks to gather
the data to the appropriate roles in your organization.
4. Processing The Data
This step begins the transformation of raw data into packaged information. Use the information to
develop insight into the performance of your process. Exceptions and alerts need to be
considered at this step as they can serve as early indicators that processes are breaking down.
Process the data into information, i.e. creating logical groupings which allow you to perform step
five. Remember, integrity of data is key; Garbage in, garbage out!
5. Analyzing The Data
Data analysis transforms the information into knowledge of the events that are affecting the
organization. More skill and experience is required to perform data analysis than data gathering
and processes. A check back against goals and objectives is expected during this activity. This
check validates that objectives are being supported and value is being added.
6. Presenting & Using The Information
Consider the target audience, make sure that you identify exceptions to the process, benefits that
have been revealed, or can be expected. Data gathering occurs at the 4th level of an organization
(see figure 1.2). Format this data into knowledge that all levels can appreciate and gain insight
into their needs and expectations.
7. Implementing Corrective Action
Use the knowledge gained to optimize, improve and correct processes. Managers need to
identify issues and present solutions. At this activity, link back to the goals of your audience.
Explain how the corrective actions to be taken will improve their performance.
While these seven steps to measurement appear to form a circular set of activities, in fact, they constitute
a knowledge spiral. In actual practice, knowledge gathered at one level of the organization becomes a
data input to the next. (see figure 1.2)
First To Fourth Order
Figure 1.2
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Organizational Levels
The strategic, tactical and operational goals and objectives for an organization, align to the four levels or
orders in a hierarchal model. Understanding the order your intended audience occupies and their drivers
helps you present the issues and benefits of your process.
At the highest level of the organization are the strategic thinkers. Reports need to be short, quick to read
and aligned to their drivers. Discussions about risk avoidance, protecting the image or brand of the
organization, profitability and cost savings are compelling reasons to support your improvement efforts.
The Second Order consists of Vice Presidents and Directors. Reports can be more detailed, but need to
summarize findings over time. Identifying how processes support the business objectives, early warning
around issues that place the business at risk, and alignment to existing measurement frameworks that
they use are strong methods you can use to sell the process benefits to them.
The Third Order consists of Managers and Supervisors. Compliance to stated objectives, overall team
and process performance, insight into resource constraints and continuous improvement initiatives, are
their drivers. Measurements and reports need to market how these are being supported by the process
outputs.
Lastly at the Fourth level of the hierarchy are the staff members and team leaders. At a personal level,
the personal benefits need to be emphasized. Therefore metrics that show their individual performance,
provide recognition of their skills (and gaps in skills) identifying training opportunities are essential in
getting these individuals to participate in the processes willingly.
Want To Learn More?
1. Attend Measuring, Reporting & Improving The IT Infrastructure According To ITIL Best
Practices, which is being presented in Orlando on August 9 – 11, 2006.
This three day certification course is designed for anyone who needs to understand methods for
measuring and reporting IT results from a business perspective, and how to use measurement
activities defined within the ITIL framework.
http://www2.pinkelephant.com/redirect.asp?page=mrina&id=pl61na
2. Attend Pink Elephant’s IT Executive Management Certification course, which is being
presented in Orlando on August 2 – 4, 2006.
This three day certification course is designed for anyone in IT who wants to understand the
key business and IT management skills necessary to become a successful senior IT manager,
and build high performance IT teams.
http://www2.pinkelephant.com/redirect.asp?page=itcna&id=pl61na
PinkLink – May, 2006. © Pink Elephant. All rights reserved.
Learn more about ITIL by visiting: www.pinkelephant.com.
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ITIL® is a Registered Trade Mark and a Registered Community Trade Mark of the Office of Government Commerce, and is
Registered in the US Patent and Trademark Office.