Managing IT: Metrics and Measurements
Instructor:Â Kevin Miller
Updated: February 14, 2025
Many IT professionals want to take the leap into IT management. One of the necessary skills is a firm understanding of metrics and measurements. In this course, Managing IT: Metrics and Measurements, you'll learn why you should measure and specifically what you should and should not measure in practice. First, you'll explore critical success factors (CSFs) and key performance indicators (KPIs). Then, you'll gain the knowledge of various metric cascades, hierarchies, and categories. Finally, you'll delve into assessments, reports, and dashboards. When you’re finished with this course, you'll have strong knowledge of the importance of taking measurements and setting metrics, as well as the ability to complete ten toolkit templates.
Free Clips
Only Measure What's Important
As I alluded to at the end of the previous clip, it is critical that you only measure what's important. Why? Because measurements are not free. Every measurement takes time to obtain, and every measurement takes time to review. You know what they say:Â time is money. This is time that could and should be better spent obtaining and reviewing measurements that matter.
Over time, measurements build up. All the extra measurements that are not being used are a distraction. You will waste time and energy sorting through them when attempting to find the ones you actually want. I'll give you an example. Things generally start small, with only a single measurement or two. But then you think of a few more key measurements, which can help. Pretty soon, you will have an entire table full of data. To better understand that data, you turn it into a visual report. You realize the report is not quite complete, so you collect a few more measurements and enhance that report. So far, things are looking good.
As time moves on, some people leave the company, and new people get hired. One of those new people is a leader and wants to see a slight change in that old report you built last year. They have some brilliant ideas from their previous employer that they want to implement here, but they need the measurements to back those ideas up. The first thing you do is capture the additional measurement that this new person seeks. Once you've confirmed its accuracy and value, you replace an older measurement on your report with a new one. You have talent. There's no doubt about that. You knew where to find that additional measurement and added it to the report quickly. This updated report is going to enable the new leader to make informed decisions, and you helped to provide the data behind those decisions. Well done. Now, before you go celebrating with all of your friends and coworkers, you have a little bit of cleanup to do.
If that old measurement isn't being used anymore, you shouldn't still be collecting it. Now I know what you're thinking. I've had these thoughts myself in the past. That measurement took a lot of effort to obtain. It doesn't make sense to throw all of that effort away. Yes, it does. We may need it again in the future. You're right, you may, but those odds are small. Plus, you can always re-obtain it. That decision isn't up to me. While you may not have the authority, the decision most certainly is up to you. Make a case for your boss to stop collecting measurements that add no value. If he or she resists, send them the link to this course, this module, and this exact clip because here is what will happen if you make excuses not to get rid of useless measurements. As you collect more and more new measurements, these old measurements will start piling up. Pretty soon, you'll be looking for a needle in a haystack to find the measurement you actually need. And why would you want to do that? Make things easier on yourself and everyone who follows you by dropping the old measurements that are no longer used. They had their time of importance, but that time has passed.
How SMART Are You?
SMART is an acronym to help you remember what it stands for, which is specific, measurable, achievable, relevant, and time-bound.
Let's do a deep dive on each of those adjectives to better understand what they mean and define why they are important.
When you are specific with a KPI, it can be used to validate, direct, justify, or intervene. You need to ensure it is clear, unambiguous, and focused.
A KPI is a metric used to demonstrate achievements, judge progress, or show trends, so it needs to be measurable.
In order for a KPI to have any impact, it must be an achievable metric. If it isn't, people will ignore it, and it will not drive the desired behavior.
KPIs need to always be relevant in relation to a CSF. Otherwise, the KPI is an extra metric not worth tracking.
Finally, KPIs need to be time-bound. Without a deadline, one could argue that the metric just needs more time to get to the standard that has been set.
The IT Triangle
Finally, I get to talk about tension metrics, or, as I like to refer to them, the IT triangle. This triangle is used in many industries, not just information technology. It's used to visually explain the pull between three competing elements. Think about the last time you were given an assignment at work. Any assignment. Your boss wanted three things from you. They wanted your work to be of high quality. They wanted you to deliver your work quickly and didn't want to have to invest a lot of money in it. In other words, they wanted your work to be good, fast, and cheap. It's what everyone wants with everything.
Think about when you bought a house or rented an apartment. You wanted it in a good location with a lot of room, available to move in soon, and at a steal of a price. Did you get the best house or apartment available with a quick move-in date at a price that was below market? Nope. You had to give up at least one of those things. That's how this triangle works. Good, fast, and cheap—pick any two. If you want something good and fast, it won't be cheap. If you want something good and cheap, it won't be fast. And if you want something fast and cheap, it won't be good.
Let's look at this from another angle. A college student wants good grades, which are high quality, and a good social life, which means not spending a lot of time studying and getting a lot of sleep. Time is the currency used to obtain good grades and a good social life. He or she can pick any two because, as a college student will tell you, having all three is impossible.
So how does this relate to work? It's pretty simple, actually. On your next assignment, your boss is going to ask for high quality, a speedy delivery, and little to no cost. It's up to you to find out which of the three has the most wiggle room.