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8.7 CSFs and KPIs
Chapter 8 ■ Continual Service Improvement
The governance, tracking, and monitoring for services, processes, and projects are
performed through two key concepts: critical success factors and key performance
indicators. These two set the base for creating metrics and measurements and are also
utilized to identify whether the improvements are effective. They are also employed to
track the overall performance of various IT services, processes, and related activities.
8.7.1 Critical Success Factors
The official definition of a critical success factor, according to the ITIL CSI publication,
is something that must happen if an IT service, process, plan, project, or other activity is
to succeed.
In essence, for an IT service or an ITIL process to succeed, there are certain CSFs
identified during the definition phase. These CSFs provide the various elements that are
needed to achieve all the objectives set forth.
For example, “safeguard ATM machines” is a CSF in the banking industry, more
specifically in the money disbursal services that the bank offers its customers. So for
the money disbursal to happen successfully, it is critical that the ATM machines are
safeguarded from thieves, skimmers, and hackers. It is a common occurrence in countries
such as India where ATM machines are wheeled away in the middle of the night. In
African and American countries, there have been countless cases of ATMs being rigged
to capture the debit card information. To counteract this, the CSF mentioned in this
example sets the direction.
Let’s look at an IT example that we are familiar with. “Assess changes for risk and
impact” is a CSF for the change management process. To elaborate, all changes need to
be assessed for potential risks and impact before they are allowed to be implemented.
This is necessary in the interests of the business and for service continuity. This CSF for
the change management process ensures that for the process to succeed, assessment
must happen.
8.7.2 Key Performance Indicators
Key performance indicators (KPIs) are the key components used to measure success.
Simply put, they define the measure and the trends that make or break the output of a
process or a project.
As the name states, they are performance indicators, and they indicate whether the
performance is on the expected lines or going downhill.
In the IT service management industry, we use KPIs to measure the outcome of an IT
service, a process, or a function.
Defining a KPI is an art driven by the maturity of an individual or the organization.
It is of prime importance to identify individuals who can make a particular activity a
stunning success or a lame duck. Identifying KPIs is not as easy as differentiating white
from black, but rather is like picking out iron filings from a heap of sand. You need to use
the magnetic wand, which in this case is the diligence of a mature professional.
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