ITAM KPIs: Before We Begin
If you’re new to IT Asset Management (ITAM), you’ve probably been introduced to the concept of license compliance as the ultimate goal—where reconciling your software purchases with installations for giants like Microsoft, Oracle, and IBM is the pinnacle of success. It’s almost as if achieving this will have angels singing your name for all eternity. But let’s take a moment to step back from this idealized notion and ask ourselves a critical question: How exactly does compliance impact the bottom line?
The answer? It doesn’t. Not directly, anyway.
In fact, an overly rigid ITAM function might even be viewed as the department that hinders progress, especially if it insists on absolute license compliance 24/7/365, preventing any changes until they’re sure everything is perfectly in order. No business wants to deal with such restrictive practices, so it’s time for a reality check.
So, how do we present KPIs that demonstrate governance without becoming a bottleneck?
ITAM KPIs: Let’s Go!
First things first, we need to understand who we’re reporting to and what data they need to see to confirm that their department or business practice is running smoothly. As I often say, Perspective is Subjective—and the best way to illustrate this is through an example.
Let’s consider the software request process, which could be described as the peak of the Bermuda Triangle of Software Asset Management (SAM).
- From an Information Security perspective, the key KPI might be the number of software requests fulfilled that weren’t on the Supported Software Catalog. This would highlight potential security risks being introduced without proper vetting.
- For Service Management, the focus might be on the time taken to fulfil a software request. This KPI ensures that employees aren’t left unproductive while waiting for new tools.
- SAM/ITAM, on the other hand, might concentrate on the cost or quantity of software requests fulfilled from the license pool each month. This would demonstrate effective use of existing licenses, ensuring that requests aren’t rubber-stamped for purchase every time they are asked for.
Returning to the topic of license compliance, we must remember that many processes contribute to creating that perfect Effective License Position (ELP). These include Entitlement Importation, Inventory Importation, Procurement, Deployment, Joiners, Movers and Leavers, and managing Lost and Stolen Devices. It’s crucial to keep your ELPs potent by ensuring that the underlying data is as fresh and accurate as possible.
Imagine if senior management requested a compliance report and you handed them the same report you provided six months ago. You might find yourself considering a career change to something far removed from IT!
KPIs: Trend Analysis
Let’s circle back to those KPIs for the software request process. Notice that these are monthly reports. Quality ITAM isn’t about reaching a final destination—it’s about the journey. Presenting measurable data over time reveals trends, and these trends require careful analysis.
For example, if the accepted value for software requests from the license pool is $3,000.00 per month, but in September it suddenly jumps to $6,000.00, you need to investigate. Was this due to an influx of interns or some other factor? If you can justify the exception, you can avoid having to ask the CFO for additional funds.
For Service Management, comparing request completion times across the board might not take into account the complexity of different tasks—like installing a database versus a desktop application. Some nuance is necessary here.
KPIs: Conclusion
One final tip: Make your KPIs financially oriented. This way, you’ll spend less time explaining the significance of a well-run process to those outside of IT—after all, everyone understands the language of money!
Keep in mind that KPIs may not always be immediately obvious from your SAM suite. It’s a tool for compliance, not a magic bullet that instantly reveals governance weaknesses. Sometimes, you need to step back, unplug from the suite, and consider the bigger picture to gather the precise data senior management and the business needs.
