The ITIL Performance Benchmarking Model – measuring the business benefits of digital technology
What is the risk for organizations that don’t assess how digital technology supports their business performance?
Failing to do this risks several negative consequences: business inefficiencies, potential financial loss, and making decisions based on subjective perceptions, without the necessary data to make the right commercial choices.
I know that businesses are concerned by this, based on the number of requests from customers – in my previous consultancy life.
And this is why we have now devised a solution that organizations and their consultants can use and benefit from immediately: the ITIL Performance Benchmarking Model (ITIL PBM).
A new measurement model – complementing ITIL (Version 5)
While PeopleCert’s existing ITIL Maturity Model has allowed organizations and Accredited Consulting Partners to assess their level of capability in digital and IT governance, organizations need something else too: the ability to measure how digital technology supports their performance.
Despite the many perspectives and challenges to devise a holistic way of assessing performance and to connect it with business outcomes, the ITIL Performance Benchmarking Model offers a way to do this. And it mirrors the concepts which underpin ITIL (Version 5): going beyond the IT function to address enterprise success through the effective management of digital technology.
The model’s benchmarking element- allowing organizations to measure and compare against external, industry performance levels - also invites enterprises to submit responses to a survey. You can help establish industry benchmarks for digital technology management by taking part in the first international ITIL Performance Benchmarking study. Click here to launch the survey and everyone who completes it gets full access to the analytical report.
How the ITIL Performance Benchmarking Model (ITIL PBM) works
The ITIL PBM offers a structured method for organizations to assess how effectively they use and manage digital technology to support business objectives.
Understanding this supports strategic decision making based on data, helps prioritize improvements and measurement across four focus areas:
• Business alignment
• Organizational resilience
• Organizational agility
• Operational excellence
Each strategic focus area contains a set of key metrics covering the effective use of digital technology for business outcomes. For example, organizational resilience includes measurement for incident rate and on-time incident resolution.
In all, there are 12 key metrics across the strategic focus areas, each of which includes:
• A definition: e.g., incident rate is the number of incidents per user, per month.
• Measurement instructions: e.g., value = number of monthly incidents/number of users and how to benchmark for consistency.
• Analysis guidelines: guidance for analysis and improvement
The critical element about the analysis section is the way it advises on how to identify reasons for underperformance and then links directly to the guidance, including specific ITIL management practices and other best practices from the PeopleCert portfolio brands, such as PRINCE2 and DEVOPS INSTITUTE.
The ITIL Performance Benchmarking study – aimed at executives, business unit heads, and other stakeholders dependent on IT-enabled services – provides questions which establish levels of satisfaction or dissatisfaction with digital and IT services.
Unlike other measurement models – which tend to be more narrowly and technically-focused – the ITIL model makes a direct connection with business outcomes.
Making the (B)right choice
Whether an organization chooses to appoint a PeopleCert Accredited Consulting Partner (ACP) to deliver the ITIL Performance Benchmarking Model, or to perform the assessment itself, the benefits are clear:
B: Business aligned – metrics that combine digital technology and business outcomes.
R: Relevant – to different organizations.
I: Integrated – with ITIL practice guides and the ITIL Maturity Model.
G: Global – ITIL is trusted worldwide.
H: Holistic – covering four strategic focus areas.
T: Transparent – measurement and defined metrics.
The model, we believe, offers the right balance between complex measurement, analysis, and a holistic approach.
And, as more organizations sign up to share their survey information, the more robust the external benchmarking data will be, enabling enterprises to compare performance with their industry peers.
However, in the interim, organizations and consulting partners can explore the model immediately; review the metrics and analysis sections to begin their performance improvement journey.
Kaimar Karu, an expert who contributed to the creation of the model, said:
“I believe that a standardized model that helps technology teams place their digital performance metrics in a wider organizational context, and shift the focus from "technology running" to "technology supporting the business", is very valuable.
“It places greater emphasis not just on activities performed, but on value co-created. The benchmarking element also allows organizations to compare their current capabilities with those of similar enterprises.
‘In doing so, conversations about improvement and investment shift away from the too-frequent gold-plating of technology and towards real impact felt across the organization, all in service of its strategy.”