It is almost impossible to imagine running a company without a good IT infrastructure, regardless of size and segment. If a while ago, the IT professional was just a service provider, for spot corrections, today, he is part of the client’s company’s succession planning. In this sense, collaborating directly for the good development of the product or service that it makes available. This goes through the metrics in IT.
The IT team needs to create a routine to optimize their services to obtain the best results. In this scenario, as in any sector of a company, it is necessary to analyze some metrics. Thus, aiming to correct specific problems, such as low productivity, service bottlenecks, and misalignment with the company’s final purpose, among others.
If well evaluated, IT metrics will collaborate to create a culture of improvements in the IT infrastructure and in the supplier’s relationship with the company. In addition, managers will be able to calculate the impact of this sector on the company’s revenues in the short, medium, and long term.
When we talk about metrics, there are always some questions in the air: how to stipulate the right indicators? How to measure results? How to fix errors? So, to help with these questions and answer other questions, we made this post. In it, you will see a complete overview of IT metrics. Good reading!
How do IT metrics work?
For a long time, IT metrics were just for evaluating the service. Therefore, they did not take into account the real impact that the actions had on the strategy of the company in which the professional worked. In the programming area, for example, productivity was measured by lines of code per period, and the deadline for delivering a project, among others.
Support teams only focused on metrics related to the number of issues resolved, showing a total focus on IT staff productivity, without any alignment or concern with the customers’ core business.
By evaluating only metrics that measure the amount of problem resolution and placing this as a positive factor for the efficiency of the IT team, the supplier will be able to mask the dissatisfaction of the infrastructure users, who are the company’s employees. In other words, a high rate of resolutions can be linked to low productivity, delay, irritation of those who depend on computers, and the perception that IT delays the company’s life.
To do a complete analysis, you should look at other metrics. Numbers that show how the systems are available, the recurrence of problems in production, and other factors that increase the operational costs of the client’s company.
What are performance metrics?
Performance metrics are those that serve to measure the impact of IT operations on customers’ business strategies and results. Their definition involves the company’s profile and even the enterprise’s benchmarking process.
It is only when there is this alignment and this concern that it becomes possible to specify the effectiveness of a metric and assess the main points of action for improvement. In this sense, without this keen eye, metrics become just numbers, without a goal, and can even be configured as vanity metrics. Check out what they are below.
What are vanity metrics?
Vanity metrics are those that, despite showing a number that seems positive about your operation, are not effective in the final strategy. These are metrics that do not generate an increase in productivity for the company, do not show how to optimize the flow of activities, and do not help in decision-making.
Not that you should ignore them, but they shouldn’t be viewed as a success without being matched with other data. Let’s look at an example of a metric that, if poorly evaluated, can become a vanity metric — the number of calls a technician has.
The number of calls from an IT technician can give the impression that there is a high level of employee productivity, but that, if looked at further and looked at in the right way, could indicate a problem in the client’s company’s infrastructure.
Another example of a vanity metric in IT is the number of downloads of software that has a trial version. The high rate of people who downloaded a trial version cannot be considered a success if we don’t take into account the number of users who purchased the paid version, as well as those who uninstalled it or gave it a low rating in the reviews.
To use a metric, it is always necessary to have an assessment of the context, needs, and objectives of the company, after all, numbers by numbers can deceive and mask serious problems.
What are the top 6 metrics in IT?
Our goal here is not to exhaust all IT metrics. Below, we list only the main ones that have some relation to customer productivity, as this should be the focus of the modern IT professional.
There is a huge range of metrics that can be analyzed and it will be up to you to have the sensitivity to perceive the need to analyze them according to the events in your day-to-day. Check out the metrics we selected for this post below.
1. Tickets created
By itself, the number of tickets created is already a metric that can give a signal about the IT infrastructure as a whole. But knowing what types of tickets are created most often can help you understand which areas require the most attention. In addition, you will be able to draw up a plan of action to solve the problems of recidivism and set a goal for that specific rate to fall.
For this to be possible, you will need to segment the tickets by priority, as explained below:
- We have low priority — an occurrence that affects only the user and does not interfere with the client’s core business;
- Medium priority — affects a group of people, impairs performance, but does not prevent tasks from being carried out;
- High priority — when it directly affects the productivity and progress of the company, harming all users;
- Planned — when the problem is related to an activity that does not impact tasks that can be rescheduled.
Your alert should be turned on when the rate of medium and high-priority tickets is too high. You should also segment tickets by issue type and devices. As below:
- Computers — desktops and laptops;
- Software, management systems, or others;
- Servers — dedicated or virtual;
- Viruses, malware, and ransomware;
2. Uptime Index
In the literal translation, uptime means uptime, and that’s exactly what this metric shows us: the period in which a company’s IT equipment is in uninterrupted activity. It is an index that must be taken very seriously, because, in the long term, it can generate financial and credibility losses for a company.
Infrastructure is only viable and productive if it is available. Therefore, the uptime rate requires a rate above 99% to be acceptable. If the index is below the recommended value, specific work will be required, which may culminate in the renewal of the company’s equipment and software.
The uptime index must be calculated using two variables: the MTBF, which refers to the average time between one failure and another, and the MTTR, an index that shows the average time for the problem to be corrected by the YOU. Here’s how the calculation is done:
- MTBF = (total time available – time lost) / number of stops;
- MTTR = total repair time/number of failures;
- Uptime = MTBF / (MTBF + MTTR).
3. ROI — Return on Investment
ROI is the acronym for Return on Investment. As its name suggests, it is the indicator that will tell you whether you are making or losing money with the acquisition of IT assets.
This metric will determine whether infrastructure investments are aligned with the company’s strategy and the level of efficiency of spending. In addition, an analysis can be made to see which equipment is causing this loss and how important they are to operations. To measure ROI, do the following calculation:
- ROI = (gain obtained – initial investment) / initial investment.
4. Security incidents
Information security is among the biggest concerns for companies, as many of them work with sensitive and valuable information. Just imagine: a company is working on a highly confidential prototype and there is a leak of an image that reveals important details of the project. It will be a full plate for the competition.
No matter how small, security incidents must always be monitored by the IT team, with well-defined metrics and indicators. Intrusion attempts, activation of firewalls, and errors in data security and leaks must be documented so that punctual actions can be taken, and the periodic evolution of cases monitored. Create a security policy to define which metrics should receive more attention.
There are no formulas for this indicator. In this way, it must be analyzed according to the occurrence and period, and you can create a fee for monitoring. Use your service management software to get the data, and don’t forget to buy the best backup and recovery on the market to ensure quick action in the event of a disaster.
5. TMA — Average Service Time
It is an indicator that directly affects customer activity, as fast service indicates less downtime and, consequently, greater productivity. TMA is calculated based on the time it takes a technician to resolve a ticket or interact with a user.
The TMA can be used to analyze some situations, among them, the need to qualify the technician to deal with a specific problem, which will require a longer resolution time.
It can also indicate the lack of automation of some processes or documents to speed up the diagnosis of some problems. Also, a high TMA can be an indicator that it’s time for your team to expand.
The TMA calculation must be done by dividing the total time of calls in minutes by the number of calls performed in a given period. Check the formula below:
- TMA = total minutes in calls/number of calls.
6. FCR — First Call Resolution
First-call resolution — or first-contact resolution, in Portuguese — as its name suggests, is the metric that will indicate the tickets that were immediately resolved by the IT team. This metric greatly influences customer satisfaction with support, due to the reduction in waiting time and the possibility for the same technician to resolve a greater number of requests on the same day.
For the IT manager, this could mean a decrease in costs per call, and an increase in revenue, due to the possibility of solving more problems with a single employee.
Despite the importance that FCR has, care must be taken so that it does not become a vanity metric. Ideally, there should be a decrease in tickets and not the need to be “putting out fires” all the time in a reactive way, even on the first contact.
For it to become a performance metric, it is also necessary to act so that tickets decrease. Remember that your goal should be to work together to grow the customer’s business, and that includes reducing downtime. See below the formula for calculating the FCR:
- FCR = tickets resolved on first contact/number of open tickets.
There are no magic formulas. The metrics themselves will tell you where and how to act and will indicate the level of urgency of each action.
How to manage IT metrics?
It is not enough to know what metrics are in IT. It is necessary to know how to use them and which ones to use so that they do not become just numbers. Knowing how to track and manage metrics can be the differentiator to leading both the IT team and the customer’s business to success. So, in this topic, we’ve put together some tips so you can track and use the data objectively.
Only use metrics that add value
We have already indicated the main metrics, but they are not the only ones. So, we could make a text with just IT metrics. With such a wide range, knowing how to select the ones that best fit the client’s needs and goals is essential.
Ask questions, find out what are the IT infrastructure bottlenecks, what are the main problems and the real needs of the company in relation to the core of the business. The metric is only valid when it adds some value and helps to obtain results. To not get lost in the midst of so many numbers, choose a maximum of four or five metrics to track.
Ensure implementation
It is no use just choosing metrics, saying that they are important, and thinking that this is enough to present good work. Monitoring metrics by an IT team will require new control mechanisms. The entire team needs to be engaged in this objective, for it to be really effective. As with any change, this new scenario may initially generate conflicts and discomfort.
Hold meetings to clarify which IT metrics you will be monitoring and the reasons for adopting this new methodology. Also explain what advantages this follow-up will bring to the flow of IT work and the success of the client’s strategies — after all, their success is also yours.
Monitor the results
You’ve already chosen the metrics that add value, aligned the execution strategy with your team and customers, and established the objectives. What to do now? Wait? Yes, you will have to set a deadline to follow the numbers periodically, however, nothing prevents you from following them daily to see the evolution – in fact, it is something highly recommended.
By doing this, you will be able to track the immediate impacts of change, even if they are small, and assess the evolution curve of a given indicator over time. Thus, it will be possible to correct any unexpected error and take the necessary actions, even in the middle of a cycle.
Create cycles for metrics management
As we saw above, the monitoring of metrics in IT must be constant, to ensure that everything is under control in the short term. But, as we have discussed throughout this text, metrics management must be based on consistent long-term results.
Establishing cycles will allow you to be able to make periodic comparisons from similar bases. You cannot compare a result collected in a period of one month with another one collected in three months, for example. It would be inconsistent.
It is much easier to make comparisons of data collected at the same time. Comparing data from April to June 2017 with data from April to June 2018 is more efficient than comparing data from July to September 2018. By comparing data from the same time period in different years, you can measure the results obtained under similar conditions and with a complete cycle.
Based on metric information obtained in similar periods, it will be easy to outline objectives for the next cycle.
Does the service delivery model influence the achievement of positive metrics?
Despite becoming an outdated service delivery model, some IT professionals still work with the break/fix model. It is that professional who is always “putting out fires”, who acts in a reactive way, and only appears when there is a problem. This model is already more than outdated and misaligned with your client’s business.
The break/fix method contributes to low customer and IT professional productivity. The customer is affected because he is obliged to stop production whenever he has a problem that has not been previously addressed. In turn, the IT supplier is stuck with a limited portfolio of customers, for not acting proactively.
The result of this is negative metrics that place the IT sector as the villain of a company project and the support professional as the last person that the entrepreneur wants to see in front of him. How will you contribute to improving a company’s uptime rate using the break/fix method? It will be very difficult.
There is no more room for this type of professional in the job market. If you still work on the break/fix model, be aware that there is a high risk that you will be overtaken by the competition.
What is MSP?
The best alternative to the break/fix method is for you to become a Managed Service Provider (MSP). It is a work philosophy that focuses on proactivity and prevention. An MSP avoids problems by using tools that allow the management and automation of tasks.
Thus, this professional can continuously monitor a client’s IT assets, identifying possible threats even before they occur, which guarantees the total availability of the equipment and, consequently, improves the clients’ productivity.
By adopting the managed services model, you will not only improve metrics considered negative, but you will also have more tools and time to act on improving other points, ensuring customer satisfaction and loyalty.
There are no more excuses for not using metrics in IT, after all, the ease of access to technologies and the increase in internet capacity allow access to a range of management and analysis tools that keep us up to date with the smallest details of a strategy from you. In addition, you can create process automation strategies that will allow you to act proactively to reduce negative rates.
If you want to be a modern IT professional and within the requirements that the market demands, you will need to change some attitudes toward IT metrics and work documentation, and your service model.
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Has your company or the clients you accompany ever experienced a problem with the lack of clarity and reconciliation between the Help Desk and the Service Desk? Share your experience in the comments, telling what the solution was adopted and its results.
