1. Copyright 2003 to present. School of Government. University of North Carolina Chapel Hill Performance Metrics For IT

2. What are Metrics? Why Should We Have Metrics?

3. The Metrics Development Process 1.Involve the people responsible for the work 2.Identify critical work processes and customer requirements. 3.Identify critical results desired and align them to customer requirements. 4.Develop measurements for the critical work processes or critical results. 5.Establish performance goals, standards, or benchmarks.

4. Three Levels of Performance Goals 1.Objectives: Broad, general areas of review. These generally reflect the end goals based on the mission of a function. 2.Criteria: Specific areas of accomplishment that satisfy major divisions of responsibility within a function. 3.Measures: Metrics designed to drive improvement and characterize progress made under each criteria. These are specific quantifiable goals based on individual expected work outputs.

5. SMART Metrics  Specific,  Measurable,  Actionable,  Relevant, and  Timely

6.  Not SMART Specific  Average System Response Time Measurable  Employee Feelings Actionable  Number of PC techs Relevant  Icons per web page Timely  Last Year’s Budget Performance

7. Types of Metrics 1.Trending against known standards: the standards may come from either internal or external sources and may include benchmarks. 2.Trending with standards to be established: usually this type of metric is used in conjunction with establishing a baseline. 3.Milestones achieved.

8. Yes/No Metrics 1.Establish/implement a system. 2.Reporting achieved (without analyses). 3.System is in place (without regard to effectiveness). 4.Threshold achieved (arbitrary standards). 5.Analysis performed (without criteria).

9. Quality of Metrics 1.Is the metric objectively measurable? 2.Does the metric include a clear statement of the end results expected? 3.Does the metric support customer requirements, including compliance issues where appropriate? 4.Does the metric focus on effectiveness and/or efficiency of the system being measured? 5.Does the metric allow for meaningful trend or statistical analysis? 6.Have appropriate industry or other external stands been applied? 7.Does the metric include milestones and/or indicators to express qualitative criteria? 8.Are the metrics challenging but at the same time attainable? 9.Are assumptions and definitions specified for what constitutes satisfactory performance? 10.Have those who are responsible for the performance being measured been fully involved in the development of this metric? 11.Has the metric been mutually agreed upon by you and your customers?

10. Internal and External Internal External Process Compliance Number of escalations Process Results PCs delivered on time Staffing On time hiring Service Phone answered in 15 seconds Quality Number of errors per run Changes installed without error Process Results Water bills print met SLA Application function delivered Project Management Number of on time checkpoints Budget Met or under-spent Necessary to Control the Organization - Diagnostic Necessary to Describe Business Results - Performance

11. Sample Metrics Customer Perspective  On Time Solutions  Client Satisfaction

12. Sample Metrics Internal Business Perspective  Availability  Batch  MTTR  Help Desk % Resolved at Level 1  Help Desk Satisfaction  Change Management Success

13. Example I/T Scorecard Financial Perspective  Business Process – Total Cost  Financial Performance

14. Example I/T Scorecard Innovation/Learning  Teaming  Skill Development and Retention  Employee Satisfaction  Process Maturity Index  Innovation and Value Add