1) The document discusses a contingency theory approach to IT service management (ITSM) performance measurement. It presents findings from a study of 6 case organizations on factors influencing their selection of ITSM metrics. 2) Both internal factors (e.g. organizational culture, governance) and external factors (e.g. legislation, industry) influence metric selection. Common internal factors across cases included governance framework, corporate strategy/goals, and IT function structure. 3) The study developed a model of ITSM performance measurement with dimensions of service, function, process and technology, and contingent internal and external factors. Organizations should tailor their metrics based on their unique environment and contingencies.

1. IT Service Management:
Towards a Contingency Theory
of Performance Measurement
Francis Gacenga, Aileen Cater-Steel, Mark
Toleman, Wui-Gee Tan

2. Partners
Research Team
Prof. Aileen Cater-Steel
Prof. Mark Toleman
Dr. Wui-Gee Tan
Francis Gacenga

3. Road Map
Definitions: ITSM, Performance, Contingency
Research method
Research findings
Factors influencing selection of ITSM metrics
Conclusions

4. IT Service Management

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. 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. 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. 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. 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. 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. External Factors
Legislation
ABCEF
Industry
ACDEF
External
Customers
ACD
Culture
C
Organisation
Competition
CF
Consultant
C
Standards
D

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. ITSM Performance Metrics Dimensions
• The ITIL continual service improvement
(OGC 2007a) book classifies metrics into:
Service
Function
Proces
s
Technology

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. 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. 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