Skip to main content

Financial Management and SACM KPIs

A learner who is working towards developing a Cost Management department recently asked about key performance indicators (KPIs) for the Financial Management and Service Asset and Configuration Management (SACM) processes.    

ITIL 2011 actually maps Critical Success Factors (CSFs) to KPIs for each process.  Key performance indicators for Financial Management can be found in section 4.3.8 of the Service Strategy book while those for SACM can be found in section 4.3.8 of the Service Transition book.

While I cannot list all of the KPIs for both processes, here is a good sample:

Financial Management
  • The financial management for IT services framework specifies how services will be accounted for, and regular reports are submitted and used as a basis for measuring the service provider’s performance.
  • All strategies have a comprehensive analysis of investment and returns, conducted with information from financial management for IT services.
  • Internal service providers receive the funding required to provide the agreed services – showing a break-even at the end of the financial planning period.
  • Customer and service assets are recorded in the configuration management system, and all required financial information is complete.
  • Regular reports are produced on the costs and utilization of customer and service assets and action plans are targeted for any deviations from required performance or utilization.
  • The cost of each service is reported on a monthly, quarterly and/or annual basis, and compared with the return achieved by that service
  • The service provider uses an accounting system, and this is configured to report on its costs by service.
  • Regular reports are provided on the costs of services in design, transition and operation.
  • Improved accuracy in budgets and charges for the assets utilized by each customer or business unit
  • Increase in re-use and redistribution of under-utilized resources and assets
  • Reduction in the use of unauthorized hardware and software
  • Reduction in the average time and cost of diagnosing and resolving incidents and problems
  • Improved ratio of used licences against paid-for licences
  • Improvement in time to identify poor-performing and poor-quality assets
  • Reduction in risks due to early identification of unauthorized change
  • Increased quality and accuracy of configuration information
Service Asset and Configuration Management
  • Improved accuracy in budgets and charges for the assets utilized by each customer or business unit
  • Increase in re-use and redistribution of under-utilized resources and assets
  • Reduction in the use of unauthorized hardware and software
  • Reduction in the average time and cost of diagnosing and resolving incidents and problems
  • Improved ratio of used licences against paid-for licences
  • Improvement in time to identify poor-performing and poor-quality assets
  • Reduction in risks due to early identification of unauthorized change
  • Increased quality and accuracy of configuration information

Comments

annasalvator said…
I like your post and truly speaking it was awesome. Anyways keep it up and keep continue with your valuable thoughts.Thanks for sharing this. high interest savings account

Popular posts from this blog

What is the difference between Process Owner, Process Manager and Process Practitioner?

I was recently asked to clarify the roles of the Process Owner, Process Manager and Process Practitioner and wanted to share this with you.

Roles and Responsibilities:
Process Owner – this individual is “Accountable” for the process. They are the goto person and represent this process across the entire organization. They will ensure that the process is clearly defined, designed and documented. They will ensure that the process has a set of Policies for governance.Example: The process owner for Incident management will ensure that all of the activities to Identify, Record, Categorize, Investigate, … all the way to closing the incident are defined and documented with clearly defined roles, responsibilities, handoffs, and deliverables. An example of a policy in could be… “All Incidents must be logged”. Policies are rules that govern the process. Process Owner ensures that all Process activities, (what to do), Procedures (details on how to perform the activity) and the policies (r…

How Does ITIL Help in the Management of the SDLC?

I was recently asked how ITIL helps in the management of the SDLC (Software Development Lifecycle).  Simply put... SDLC is a Lifecycle approach to produce the software or the "product".  ITIL is a Lifecycle approach that focuses on the "service".
I’ll start by reviewing both SDLC and ITIL Lifecycles and then summarize:
SDLC  -  The intent of an SDLC process is to help produce a product that is cost-efficient, effective and of high quality. Once an application is created, the SDLC maps the proper deployment of the software into the live environment. The SDLC methodology usually contains the following stages: Analysis (requirements and design), construction, testing, release and maintenance.  The focus here is on the Software.  Most organizations will use an Agile or Waterfall approach to implement the software through the Software Development Lifecycle.
ITIL  -  is a best practice for IT service management (ITSM) that focuses on aligning IT services with the needs …

ITIL 4 – Mapping the Customer Journey

All service providers are in the business of customer and user experience. It is not enough to compete on products and services, how services are delivered is as important as what is delivered.

The customer journey is the complete end-to-end experience customers have with one or more service providers and/or their products through the touchpoints and service interactions with those providers. In order to focus on the outcomes and on the customer/user experience, service providers are seeking to master the art of mapping their customer journey. Doing so allows them to maximize stakeholder value through co-creation of value throughout the entire value chain.

The customer journey begins by understanding the overall macro-level of steps or groups of activities that generate the need for interaction between the customer and the service provider. These activities begin at “Explore” and end with “Realize” where the value is actually being consumed by the end-users.
The Band of Visibility