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

Four Service Characteristics

Recently I came across several articles by researchers and experts that laid out definitions and characteristics of services. ITIL provides us with a definition that can help drive the creation of value-laden services: A means of delivering value to customers by facilitating outcomes customers want to achieve without the ownership of specific costs and risks. An area that ITIL is not so clear is in terms of service characteristics. Several researchers and experts put forth that services have four basic characteristics (IHIP): Intangibility—Services are the results of actions not things. They have no physical presence and represent a logical set of elements. One way to think of service is “work done for others.” Heterogeneity—Also known as “variability”; services are unique items because of the mechanisms used to deliver services, which is people. Because the people element adds variability, the service is variable. This holds true, especially for the value proposition—not eve...

What Is A Service Offering?

The ITIL 4 Best Practice Guidance defines a “Service Offering” as a description of one or more services designed to address the needs of a target customer or group. As a service provider, we can’t stop there! We must know what the contracts of our service offering are and be able to put them into context as required by the customer. Let’s explore the three elements that comprise a Service Offering. A “Service Offering” may include: Goods, Access to Resources, and Service Actions 1. Goods – When we think of “Goods” within a service offering these are the items where ownership is transferred to the consumer and the consumer takes responsibility for the future use of these goods. Example of goods that are being provided in the offering – If this is a hotel service then toiletries or chocolates are yours to take with you. You the consumer own these and they are yours to take with you. ...

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

This article was originally published in 2015. With the Introduction of ITIL 4, some of this best practice has changed. See ITIL 4 and the Evolving Role of Roles . Updated Definitions in ITIL 4: Process Owner: In ITIL 4, the concept of 'processes' has expanded into broader 'practices.' Consequently, the Process Owner is now often referred to as the 'Practice Owner.' This individual is accountable for the overall design, performance, integration, and improvement of a specific practice within the organization. They ensure that the practice achieves its intended outcomes and aligns with the organization's objectives. Process Manager: Now commonly known as the 'Practice Manager' in ITIL 4, this role is responsible for the day-to-day management of the practice. The Practice Manager ensures that activities are carried out as intended, manages resources assigned to the practice, and oversees the practitioners performing the work. Process Practit...

Search