IT Service Management:
Towards a Contingency Theory
of Performance Measurement

Francis Gacenga, Aileen Cater-Steel, Mark
...
Partners

Research Team

Prof. Aileen Cater-Steel
Prof. Mark Toleman
Dr. Wui-Gee Tan
Francis Gacenga
Road Map
Definitions: ITSM, Performance, Contingency
Research method
Research findings

Factors influencing selection of I...
IT Service Management
ITSM Performance Measurement
“The process of quantifying the efficiency and effectiveness
of action”
(Neely et al., 2005)....
Contingency Theory
May lead to a better understanding of ITSM
performance measurement by enabling the
identification of “s...
ITIL performance measurement studies
Research approach
(authors)

Underlying theory/ model

Study main purpose

Qualitativ...
Research Method
Survey of
ITSM benefits
and metrics

• Quantitative and qualitative
analysis of surveys

6 case studies

•...
6 Case Study Organisations
Service Plan Director,
Performance Manager

Client Services Director

P
u
b
l
i
c

• Health & c...
Internal Factors
Manager
ABCEF

Tools
ABCDEF
Staff
ADEF

Books
DEF
Process
E

ITSM
Culture
ABDEF
Goals
ADEF

Strategy
BCDE...
External Factors
Legislation
ABCEF

Industry
ACDEF

External
Customers
ACD

Culture
C

Organisation
Competition
CF

Consul...
Cross Case Analysis Summary
1. Organisation
culture INT
2. ITSM manager
perspective INT
3. Legislation EXT

A

B

4.

F

E...
ITSM Performance Metrics Dimensions
• The ITIL continual service improvement
(OGC 2007a) book classifies metrics into:
Ser...
ITSM Performance Measurement Model
ITSM Performance
DIMENSIONS & Sample
Metrics
SERVICE
• Customer satisfaction of end-to-...
Conclusion
3 categories of factors influence selection of ITSM
metrics – external environment, parent organisation
and IS ...
Links to publications
available at:

http://eprints.usq.edu.au/view/peo
ple/Gacenga=3AFrancis=3A=3A.h
tml

THANK YOU

Fran...
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It service management towards a contingency theory of performance measuremente 20111206

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'IT service management: towards a contingency theory of performance measurement', International Conference on Information Systems ICIS 2011 Proceedings Paper 5, Shanghai, December 4-7.

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  • Why measure the performance of ITSM – significant investment in IT and ITSM, problematic for theory and practice, Understanding factors influencing the selection of ITSM performance measurement will contribute to addressing this problem.
  • USQ researchers Prof. Cater-Steel, Prof. Toleman, Dr. Tan and myselfPartners – ARC, QH and itSMF
  • Why we conducted the studyHow we conducted the studyWhat we learnt from the study
  • ITSM is an approach to customer oriented IT functionsITSM focuses on service creation, design, delivery and maintenance.Typically adopting ITSM involves consultant, training, ITIL books, itSMF, ITSM software
  • Measurement is one of the underlying elements of service science.This paper focuses on the selection of ITSM performance metrics and contingency theory provides a theoretical foundation.
  • Value co-creation of services requires we understand how the environment influences the management of IT as a serviceCT - loosely organised propositions that endorse view that there are no universally valid rules of organisation and managemement (Luthans 1973, Rejc 2004)CT enables researcher to relax assumptions underlying theoretical propositions and systematically introduce factors to explain phenomena (Umanath 2003)----- Meeting Notes (23/11/11 16:00) -----`
  • Methods: Case studies, LRs, DSTheory/Model – SERVQUAL BSCFocus: Quality, benefits and value evaluationWe advance this area by considering the factors that influence the selection of ITSM performance metrics
  • Survey – 2085 ITSMFA members in 2009Case Study – 2 hour interviews at 6 organisationsContent Analysis – 4 researchers, interview transcripts, survey responses, organisation documentsCross-Case Analysis – used to aggregate case study findings
  • Org A: MSP Undergoing organisation structure changes. Main influence organisation cultureOrg B: Health: Series of changes in CIOs, BSC tapered off. CIO influence main factorOrg D: EDU: Changing over the ITSM tool. CIO influence and to an extent legislation were influencesOrg C: MSP: Used a combination of frameworks & stds. IS function structure and external customers main influenceOrg E: Charity: No specific framework for measuring performance. Internal customers were key influence.Org F: Community: Early stages of implementing ITSM. ITSM Manager perspective, tools and IS goals key influence.
  • Environment variables are factors beyond the control of the organistations resource managers (Luthans and Stewart 1977)Internal environment factors – within the organisation but outside the control of the ITSM manager (Luthans and Stewart 1977)Organisations: A to FFont size represents the frequency of factor across the organisation.
  • External factors – outside the organisational system
  • Case study findings suggest that selection of ITSM performance metrics is influenced by a range of internal and external environment factors.Case A and C the two MSPs both had external customers as an influencing factorThe was variation in the range of influencing factors. Case E reported 16 environmental factors and Case D reported 6 external factors
  • The case study organisations primarily measured performance usingtechnology, process and function metrics. Few end to end (service) metricsTechnology e.g. Network bandwidth usageProcess e.g. Number of incidentsFunction e.g. Actual spend against budgetService e.g. customer satisfaction
  • The selection of ITSM performance metrics is influenced by internal and external environment factorsNew internal contingency factors such as ITSM and ICT tools and corporate performance measurement frameworkOf the external factors identified in previous studies only industry sector and resourcesOrganisations using a corporate performance framework (ACD) had a clearly defined set of metrics
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  • It service management towards a contingency theory of performance measuremente 20111206

    1. 1. IT Service Management: Towards a Contingency Theory of Performance Measurement Francis Gacenga, Aileen Cater-Steel, Mark Toleman, Wui-Gee Tan
    2. 2. Partners Research Team Prof. Aileen Cater-Steel Prof. Mark Toleman Dr. Wui-Gee Tan Francis Gacenga
    3. 3. Road Map Definitions: ITSM, Performance, Contingency Research method Research findings Factors influencing selection of ITSM metrics Conclusions
    4. 4. IT Service Management
    5. 5. ITSM Performance Measurement “The process of quantifying the efficiency and effectiveness of action” (Neely et al., 2005). A broad term that “covers both overall economic and operational aspects” (Tangen, 2005) including measures of productivity, profitability and quality.
    6. 6. Contingency Theory May lead to a better understanding of ITSM performance measurement by enabling the identification of “specific aspects of a performance measurement system that are associated with certain defined circumstances” (Rejc 2004). Contingency theory has been used in previous studies that focused on IS. Saunders and Jones (1992) and Myers et al. (1997).
    7. 7. ITIL performance measurement studies Research approach (authors) Underlying theory/ model Study main purpose Qualitative (Case study) SERVQUAL and IT SERVQUAL Quality of IT individual services Value based management SERVQUAL, BSC IT services procurement Hochstein (2004) Theoretical (Literature review), market acceptance survey Praeg and Schnabel (2006) Theoretical (Literature review) BSC, activity diagrams Donko and Traljic (2009) Design science McNaughton et al. (2010) IS SERVQUAL and IS Reverse SERVQUAL Explaining measuring quality through variation in service level and business loss Building a framework for measuring benefits and value of ITIL
    8. 8. Research Method Survey of ITSM benefits and metrics • Quantitative and qualitative analysis of surveys 6 case studies • Content analysis of case studies • Cross case analysis
    9. 9. 6 Case Study Organisations Service Plan Director, Performance Manager Client Services Director P u b l i c • Health & community services • > 10,000 Staff • Admin - IT MSP • 200 to 999 staff $ $5 to $9 Million $ • IT MSP • > 10,000 staff > $150 Million ITSM 7 years > $150 Million $ Service Desk Manager •Health & community services •2,000 to 4,999 staff •Not for Profit •200 to 999 staff $ > $150 Million ITSM 3 years > $150 Million ITSM 4 years Services Manager, Reporting Analyst, Project Office Manager, Operations Manager QA & Certification Manager $ •Education •5,000 to 9,999 staff ITSM 8 years ITSM 4 years P r i v a t e Biz Integration Manager, Service Level Manager, Service Manager, IT Serv. Office Director, $ > $150 Million ITSM 1 year
    10. 10. Internal Factors Manager ABCEF Tools ABCDEF Staff ADEF Books DEF Process E ITSM Culture ABDEF Goals ADEF Strategy BCDE Size DE Organisation Structure ABCDEF Budget Goals ABE BEF Maturity CEF Size DE IS Function Philosophy ACDEF CIO Influence Needs BDE ABD Metrics Support F Senior Management Governance ABCDEF Performance AD HR A Framework Internal Customers ADEF ITSM Knowledge F Process Complexity E Ease of Use C
    11. 11. External Factors Legislation ABCEF Industry ACDEF External Customers ACD Culture C Organisation Competition CF Consultant C Standards D
    12. 12. Cross Case Analysis Summary 1. Organisation culture INT 2. ITSM manager perspective INT 3. Legislation EXT A B 4. F E C 1. Senior management philosophy INT 2. Industry sector EXT 1. 2. 3. D INT governance, strategy & goals IS Function structure ICT tools in use
    13. 13. ITSM Performance Metrics Dimensions • The ITIL continual service improvement (OGC 2007a) book classifies metrics into: Service Function Proces s Technology
    14. 14. ITSM Performance Measurement Model ITSM Performance DIMENSIONS & Sample Metrics SERVICE • Customer satisfaction of end-to-end service • Response time • Transaction time FUNCTION • Actual spend against budget • Number of complaints and compliments PROCESS • • • • Number of incidents Number of successful changes Incidents caused by changes Operating level agreement breaches TECHNOLOGY • Network bandwidth usage • Server power consumption External Contingency Factors Legislation (5) Industry sector (5) ITSM resources (4) External customers (3) • • • • Internal Contingency Factors Parent Organisation Governance framework (6) Corporate strategy & goals (6) Organisation culture (5) Senior management philosophy (5) Internal customers (4) Corporate performance framework (3) Senior management needs (3) CIO influence (3) • • • • • • • • IS Organisation • • • • • • • IS function structure (6) ITSM & ICT tools in use (6) IS manager perspective (5) IS function size (4) IS goals (3) IS function maturity (3) IT operations staff influence (3) Based on Saunders and Jones (1992) and Myers et al. (1997). Selection of ITSM Performance Metrics
    15. 15. Conclusion 3 categories of factors influence selection of ITSM metrics – external environment, parent organisation and IS organisation. 4 factors common to 6 cases: governance framework, corporate strategy and goals, IS function structure and ITSM and ICT tools in use. Practitioners should tailor ITSM performance metrics to the organisation’s environment
    16. 16. Links to publications available at: http://eprints.usq.edu.au/view/peo ple/Gacenga=3AFrancis=3A=3A.h tml THANK YOU Francis Gacenga gacenga@usq.edu.au

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