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How To Measure IT Performance In 2022? 7 Key Metrics For Success In IT

Updated: May 18, 2023

measure it performance bright horse

You have to agree that the need to measure IT performance has to be one of the most painstakingly important tasks that differentiate successful companies from the ones that “aren’t as successful”. When done correctly, the analysis and assessments can lead to thousands if not millions of pounds in saving unnecessary costs, better deliverance of services and an overall rise in profit-making. Conversely, incorrect measurement of IT may lead to inaccurate data which could mean a severe loss of finances, unhappy customers and a drastic depreciation of company value.


What Is A Performance Review In IT?


A performance review, similar to an employee evaluation, serves a different objective. It is a long-term objective evaluation of an employee’s talents and ambitions.


Similarly, the periodic evaluation of the infrastructure’s effectiveness and prospects for improvement is at the heart of an IT performance review. The analysis looks at things like performance, dependability, capacity, architecture, and configuration, as well as any significant flaws. Reviews, therefore, provide a critical evaluation that may be used to guide high-level company responsibilities including planning and budgeting, improvement initiatives, and technology expenditures.


5 Step Process To Measure IT Performance In 2022

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Establish Objectives Of The Measuring Assessment


Concentrate your assessment on facts that will help you make the decision you need to make, whether it’s to upgrade a product or cut IT expenditures.


Set A Range For Efficient Measurement


Although it is possible to assess the performance of every piece of hardware and software, such efforts take an awful lot more time than a targeted study and are usually not worth it. The extent of the review is determined by its objectives. Limit performance evaluations to storage systems, such as disc capacity, and related resources, such as an automated data tiering tool, if the aim is to analyse and minimise storage expenses.


Data Collection


The third step in the process would be to gather as much relevant data as possible. Use current systems management and monitoring technologies to create a plethora of data and derive actionable key performance indicators (KPIs) from systems and applications. If for some reason the  KPIs aren’t accessible, IT employees should run tests and generate KPIs to help with the evaluation.


Analysis Of The Collected Data


Make objective conclusions regarding the status of the infrastructure, systems, and applications that function within the scope of the evaluation by mapping the measurements and KPIs to the goals. If possible, compare the present data to similar data from past evaluations to see how performance has evolved.


Provide Suggestions And Recommendations


The concerns or opportunities revealed by the evaluation are generally addressed via recommendations.

7 Metrics To Measure IT Performance In 2022


Metrics are critical for IT companies that want to meet their objectives. They may, however, be tricky to choose from. Hence picking the correct measurement parameters is crucial.


Availability and Performance of Online Applications


It refers to how much of the time the programme is working properly. Is a programme “available” if it is accessible to certain users but not all? Furthermore, the average time that is taken for a screen or page to be loaded should also be assessed.


Fulfilment of XLAs


XLAs (Experience Level Agreements) are an evolved version of the typical Service Level Agreements (SLAs) that IT Service Providers sign with their customers. It not only focuses on the KPIs but also goes the extra mile to ensure that its customers are getting the desired outcome as well. With the kind of cutthroat competition IT MSPs are finding themselves in 2021, providing and measuring XLAs over SLAs is the next step towards long-term success.


Want To Know More About XLAs? Check Out: Why SLAs Aren’t The Future Of IT


Production incidents


The quantity of production issues that are split by their severity.


Project Cost And Satisfaction.


The percentage of projects completed within the estimated budget. The average score from your customers’ post-project assessment through surveys and questionnaires.


Limitation of Faults


The defect percentage should be included inside the test settings. It is commonly recognised that fixing errors in manufacturing is substantially more expensive. This measure compares the number of flaws detected in the first 30 days of production to the number of problems repaired throughout the development process.


Budget Deviation


Access if the actual and planned expenses are contrasted. Since direct expenditures (salaries) are more manageable, this should be done for both direct and inter-company expenses (allocations from other departments).


Resource Cost


This indicator shows how well managers are controlling expenses by employing lower-cost outsourcing labour, being careful with higher-cost temporary labour, and operating a company that isn’t overburdened with costly staff.


Information Credit: CIO.

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