It service management towards a contingency theory of performance measuremente 20111206

IT Service Management: Towards a Contingency Theory of Performance Measurement

IT Service Management: Towards a Contingency Theory of Performance Measurement

Francis Gacenga, Aileen Cater-Steel, Mark Toleman, Wui-Gee Tan

Prof. Aileen Cater-Steel

Prof. Mark Toleman

Dr. Wui-Gee Tan

Francis Gacenga

Partners Research Team

Road MapRoad Map

Factors influencing selection of ITSM metrics

Research method

Definitions: ITSM, Performance, Contingency

Research findings

Conclusions

IT Service ManagementIT Service Management

ITSM Performance MeasurementITSM Performance Measurement

“The process of quantifying the efficiency and effectiveness of action” (Neely et al., 2005).

A broad term that “covers both overall economic and operational aspects” (Tangen, 2005) including measures of productivity, profitability and quality.

Contingency TheoryContingency Theory

May lead to a better understanding of ITSM performance measurement by enabling the identification of “specific aspects of a performance measurement system that are associated with certain defined circumstances” (Rejc 2004).

Contingency theory has been used in previous studies that focused on IS. Saunders and Jones (1992) and Myers et al. (1997).

ITIL performance measurement studiesITIL performance measurement studies

Research approach (authors)

Underlying theory/ model Study main purpose

Qualitative (Case study)

Hochstein (2004)

SERVQUAL and IT SERVQUAL

Quality of IT individual services

Theoretical (Literature review), market acceptance survey

Praeg and Schnabel (2006)

Value based management SERVQUAL, BSC

IT services procurement

Theoretical (Literature review)

Donko and Traljic (2009)

BSC, activity diagrams Explaining measuring quality through variation in service level and business loss

Design science

McNaughton et al. (2010)

IS SERVQUAL and IS Reverse SERVQUAL

Building a framework for measuring benefits and value of ITIL

Research MethodResearch Method

Survey of ITSM

benefits and metrics

• Quantitative and qualitative analysis of surveys

6 case studies

• Content analysis of case studies

• Cross case analysis

$

Client Services Director

• Admin - IT MSP• 200 to 999 staff

$5 to $9 Million

ITSM 4 years$

Service Plan Director,Performance Manager

• Health & community services • > 10,000 Staff

> $150 Million

ITSM 8 years

$

Service Desk Manager

•Health & community services•2,000 to 4,999 staff

> $150 Million

ITSM 1 year

$

Services Manager, Reporting Analyst, Project Office Manager, Operations Manager

•Not for Profit •200 to 999 staff

> $150 Million

ITSM 3 years

A B $

Biz Integration Manager, Service Level Manager, Service Manager, IT Serv. Office Director,

•Education•5,000 to 9,999 staff

> $150 Million

ITSM 4 years D

$

QA & Certification Manager

• IT MSP• > 10,000 staff

> $150 Million

ITSM 7 years C E F

6 Case Study Organisations6 Case Study OrganisationsPublic

Private

StrategyBCDE

SizeDE

GoalsADEF

CultureABDEF

Organisation

HRA

PerformanceAD

GovernanceABCDEF

Framework

NeedsABD

CIO InfluenceBDE

PhilosophyACDEF

Metrics SupportF

Senior Management

StructureABCDEF

BudgetABE

SizeDE

GoalsBEF

IS Function

MaturityCEF

BooksDEF

StaffADEF

ToolsABCDEF

ManagerABCEF

ITSM

ProcessE

Internal Customers

ADEF

Process Complexity

E

ITSM Knowledge

FEase of Use

C

Internal FactorsInternal Factors

IndustryACDEF

External Customers

ACD

CompetitionCF

CultureC

LegislationABCEF

ConsultantC

StandardsD

External FactorsExternal Factors

Organisation

Cross Case Analysis SummaryCross Case Analysis Summary

A

B

C

D

E

F

INT1. governance, 2. strategy & goals 3. IS Function

structure4. ICT tools in use

1. Organisation culture INT

2. ITSM manager perspective INT

3. Legislation EXT

1. Senior management philosophy INT

2. Industry sector EXT

ITSM Performance Metrics DimensionsITSM Performance Metrics Dimensions

• The ITIL continual service improvement

(OGC 2007a) book classifies metrics into:

Technology

Process

Function

Service

Selection of ITSM

Performance Metrics

External Contingency Factors

• Legislation (5)• Industry sector (5)• ITSM resources (4)• External customers (3)

ITSM Performance DIMENSIONS & Sample Metrics

SERVICE• Customer satisfaction of end-to-end

service• Response time• Transaction time

FUNCTION• Actual spend against budget• Number of complaints and

compliments

PROCESS• Number of incidents• Number of successful changes• Incidents caused by changes• Operating level agreement

breaches

TECHNOLOGY• Network bandwidth usage• Server power consumption

Parent Organisation• Governance framework (6)• Corporate strategy & goals (6)• Organisation culture (5)• Senior management philosophy (5)• Internal customers (4)• Corporate performance framework

(3)• Senior management needs (3)• CIO influence (3)

IS Organisation• IS function structure (6)• ITSM & ICT tools in use (6)• IS manager perspective (5)• IS function size (4)• IS goals (3)• IS function maturity (3)• IT operations staff influence (3)

Internal Contingency Factors

Based on Saunders and Jones (1992) and Myers et al. (1997).

ITSM Performance Measurement ModelITSM Performance Measurement Model

ConclusionConclusion

3 categories of factors influence selection of ITSM metrics – external environment, parent organisation and IS organisation.

4 factors common to 6 cases: governance framework, corporate strategy and goals, IS function structure and ITSM and ICT tools in use.

Practitioners should tailor ITSM performance metrics to the organisation’s environment

Links to publications available at: THANK YOU

Francis Gacenga

[email protected]

http://eprints.usq.edu.au/view/people/Gacenga=3AFrancis=3A=3A.html