Skip to main content

KPIs and SLAs

A short while ago I was asked this question from one of our reader: “I want to set a KPI around how much of the time we meet the SLA. Like 'meeting the SLA x% of the time'. Can someone advise what would be that 'x'? What is the common practice?  Is there an industry standard around this?”  I’m going to have to go with the consultant answer and say it depends.   First, are we talking about a single service to a single customer? Are we talking about multiple services to multiple customers or somewhere in between those two extremes?

Your SLAs should include details of the anticipated performance that your customer expects.  First thing you need to do is discuss with your customer what are the levels of utility and warranty they are expecting? Then document and agree these targets are reachable given the resources that are at your disposal and any constraints that may be discovered. The requirements for functionality (utility) should be defined by your BRM process and documented in the SLR document.

When you say that we want to meet SLA x% of the time, there are many factors that could have an impact on your ability to meet or not meet that target. How well are these services documented in your service portfolio and catalog? How mature is your Service Level Management process, Incident and Problem Management processes?  How often do you have to allow for changes to services, which could possibly impact the availability of your service?   These and other factors can have a distinct impact on meeting SLAs.  So here are a couple of KPIs you might want to explore:
  • KPI: Total number and percentage increase in the number of SLAs in place
  • KPI: Percentage increase in SLAs agreed against operational services being run
  • KPI: Frequency of service review meetings
  • KPI: Reduction in average response time to outages and incidents
  • KPI: Reduction in outstanding (unresolved) problems for services being delivered
  • KPI: Percentage increase on issues being raised at service and SLA review meetings that are being followed up on and resolved
  • KPI: Increase in number of services with timely reports and active service levels
I hope this will be enough to get you started and stay busy for a while.  Good luck! 

For more information on KPIs and SLAs, consider ITSM Academy's ITIL Foundation and check out our Free Resource Center

Comments

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 …

Incidents when a Defect is Involved

Question: We currently track defects in a separate system than our ticket management system. With that said, my question is does anyone have suggestions and/or best practices on how to handle incidents when a defect is involved? Should the incident be closed since the defect is being worked on in another defect tracking system if it is noted in the incident ticket? I am considering creating an incident statuses of 'closed-unresolved' so the incident can still be reported on in our ticket management system but know it is being worked on/tracked in the defect system. With defects, it is possible that we may never work on them because they are very low priority and the impact is low to the user. However, in some cases a defect is being worked on. Should we create a problem ticket instead?
Thanks, René W.

Answer: RenĂ©. In ITIL, the activity you are describing is handled by the Problem Management process. ITIL does not use the term “defect” but it does use the term “known error” to…