A performance measurement framework for IT service management

A performance measurement framework for IT service management

The use of Information Technology (IT) has become more pervasive and, progressively, there has been a shift from a technology focus to a service focus in managing IT. The performance measurement of IT service management (ITSM) is a major challenge faced by organisations adopting best practice frameworks. The extensive adoption of ITSM frameworks by organisations may point to the acceptance by IT service managers that best practice frameworks such as Information Technology Infrastructure Library (ITIL®) and standards such as ISO/IEC 20000 can deliver real operational efficiencies, ultimately translating into business benefits. Some organisations implementing ITSM initiatives have reported realisation of benefits in cost savings and standardisations in delivery of IT service.
Despite the appeal and the potential to realise benefits, the implementation of ITSM initiatives is complicated by the complexity in measuring performance. Measurement of the performance of ITSM is critical due to the size of the investment and the crucial importance of IT services to organisations. Few guidelines on the performance measurement of ITSM exist for industry practitioners; and scant academic research has been conducted on the performance measurement of ITSM. The objective of this research is to develop a framework that can be used to measure the performance of ITSM and, hence, contribute to ITSM initiatives in organisations.
To achieve this objective, the study uses a mixed-method and multi-paradigm approach to develop an ITSM performance measurement framework and contingency theory for the performance measurement of ITSM. The study uses a survey of ITSM benefits and performance measurement to identify ITSM performance measurement practices. A survey was conducted on the ITSM performance measurement practices of members of the IT Service Management Forum of Australia (itSMFA). The survey findings were used to identify six ITSM performance measurement exemplar organisations for case study. The case studies provided further insight into ITSM performance measurement practices. The results of the literature review, survey and case studies formed the basis for the design of the ITSM performance measurement framework. The design science approach of Design Science Research Methodology (DSRM) and the design method of Matching Analysis Projection and Synthesis (MAPS) were used to develop the ITSM performance measurement framework.
The study provides a comprehensive literature review on the performance measurement of ITSM. A review of the existing industry and academic literature showed a gap in theory for performance measurement of ITSM. There was also a lack of a contextualised performance measurement framework for ITSM. The study developed categories for types of organisation level and process level ITSM, and categories for types of ITSM performance metrics. The performance measurement framework developed by the study is structured using the Balanced Scorecard (BSC) and can be used to quantify benefits and link organisational level benefits and metrics with process level metrics. The developed framework includes a consolidated ITSM metrics catalogue structure. The study identified the internal and external organisational factors that influence the selection of ITSM performance metrics and proposes a contingency theory for the performance measurement of ITSM. The study makes theoretical and practical contributions in ITSM performance measurement by extending ITSM performance measurement theory, IS design theory and developing a holistic multi-level ITSM performance measurement framework that can be used by organisations.
This dissertation is a result of a study funded by an Australian Research Council (ARC) linkage project grant in partnership with Queensland Health (QH) and the IT Service Management Forum (itSMF) Australia. The study contributes to the linkage project by addressing the complex interactions of benefits, performance metrics and methods to enable Chief Information Officers (CIOs) and IT service managers to measure the performance of IT service management.