The following ISM3 table suggests the elements that must be known for a
metric to be fully defined. This table is criticized sometimes as it omits
controls against bias.
Element
Description
Metric
Name of the metric
Metric Description
Description of what is measured
Measurement Procedure
How is the metric measured
Measurement Frequency
How often is the measurement taken
Thresholds Estimation
How are the thresholds calculated
Current Thresholds
Current range of values considered normal for the metric
Target Value
Best possible value of the metric
Units
Units of measurement
Metrics are used in business model, CMMI, ISM3, Balanced scorecard and
knowledge management. These measurements or metrics can be used to track trends,
productivity, resources and much more. Typically, the metrics tracked are key
performance indicators, also known as KPIs. For example, you would use metrics
to better understand how a company is performing compared to other companies
within its industry.
Most methodologies define hierarchies to guide organizations in achieving
their strategic or tactical goals. An example can be:
Objectives
Goals
Critical success factor (CSFs)
Key Performance Indicators (KPIs or Metrics).
The intention is to identify future-state objectives, relate them to specific
goals that can be achieved through critical success factors or performance
drivers which are then monitored and measured by key performance indicators.
Through this hierarchy, organizations can define and communicate relationships
between metrics and how they contribute to the achievement of organizational
goals and objectives.
Metrics are important in IT Service Management including ITIL; the intention
is to measure the effectiveness of the various processes at delivering services
to customers. Some suggest that data from different organizations can be
gathered together, against an agreed set of metrics, to form a benchmark, which
would allow organizations to evaluate their performance against industry sectors
to establish, objectively, how well they are performing.
