If I had a dollar for every time someone asked me “What should I measure?” I would probably be poolside right now, sipping an umbrella drink instead of shivering through this seemingly eternal winter (that’s a whole other blog).

KPIs (key performance indicators), measurements, metrics—words we throw around so readily, yet they are something people struggle with when it comes to service management.

As the old saw goes, “You can’t manage what you can’t measure.” Without measurements and tangible “proof,” best guestimates or gut feel become the barometer for determination and decision making. But they will only get you so far.

Let’s explore the utilization of KPIs in your service management implementation and/or improvement journey. First, it’s probably prudent to provide some definitions:

Metric: A metric is a measure of performance, effectiveness, or efficiency. Metrics are used to validate, direct, justify, and intervene.
Key performance indicator (KPI): Key performance indicators are a measure of progress toward achieving one’s goals and objectives. KPIs are specific to the goals of the organization.
Baseline: A baseline is a set of support center performance measurements taken prior to an improvement project or a planned change. Baselining allows you to take a snapshot of your current services. That reference point is then used to measure the impact of change over time.
Benchmarking: Benchmarking is a process used to evaluate various aspects of an organization’s processes with regard to best practices, usually within its own industry or sector. This allows organizations to develop plans for adopting best practices and improving performance.
Earlier in this blog series, I talked about a phased approach to service management. I’m going to revisit that approach here, and help you understand where metrics and KPIs become the key to the whole approach.

[Source] http://www.hdiconnect.com/blogs/servicemanagement/022311/1289/service-management-and-kpis.aspx