How to develop KPI for IT department?

Answer QuestionsCategory: ITHow to develop KPI for IT department?
asked 8 years ago
2 Answers
Aleksey Savkin Staff answered 8 years ago

Dear Pasun,
A general algorithm to define any KPIs including for the IT department was described here. And for sure, there are some more or less standard indicators that with minor modifications can be applied to any business (listing them below).
Finance:

  • IT expense as a percentage of total expense
  • IT expense per employee
  • Support expense per user

Customers:

  • User request response time
  • The number of critical problems reported by user
  • Business System Utilization

Internal:

  • Mean Time Between Failures (MTBF)
  • Mean Time to Repair (MTTR)
  • Availability (uptime)
  • Downtime related to security issue

Learning & growth:

  • The number of returning problems
  • Restore success rate

 

Aleksey Savkin Staff answered 8 years ago

Additional note: you can find more information about IT KPIs + example of the Balanced Scorecard for IT in this new article.


KPIs or Strategy – which comes first?

Start free wizard to create your strategy map Ideally, you need to have a strategy before start thinking about KPIs. How to create a good strategy? It's tricky and will require your expertise:
  • You will need to understand what your customers want and
  • How to give them what they want in the most effective way.
  • You will need to think about your competitors and, for sure, about your team.
Sounds like something complex? Not at all! Use this free Strategy Map Wizard and you will have your strategy map in 6 minutes.

10-Step System to Find Tailor-Made Key Performance Indicators

kpi-system-240

Examples of KPIs

It is easier to get started with KPIs when you have some good examples to follow. Find here examples of KPIs for various domains.

Winning KPI Crash Course

premium-bsc-training Even the best KPIs won't change anything if they are not properly aligned with a business context, if a company's strategy is not well defined, if there is no clear understanding about what the company is measuring and way...

Check out a "crash-course" for the Balanced Scorecard and KPIs.

Find us on Google Plus