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Service Financial Management
KPIs
Description | Source | How to calculate | How to use it |
|---|---|---|---|
Budget Accuracy | Financial reports, budgets | (Actual spend / Budgeted amount) * 100 | Evaluate the accuracy of IT budget forecasts and financial planning |
Cost per Service | Financial records, service usage data | Total cost of service / Number of service units | Determine the cost-effectiveness of each IT service |
Cost Recovery Rate | Financial reports | (Revenue from services / Costs of services) * 100 | Measure the percentage of IT costs recovered through internal or external charging |
ROI on IT Investments | Financial records | (Net profit from IT investments / Cost of IT investments) * 100 | Assess the profitability and effectiveness of investments in IT services |
Variance from Budget | Budget reviews, financial statements | Budgeted amount - Actual spend | Monitor deviations from the allocated budget to manage and adjust financial planning |
Total Cost of Ownership (TCO) | Purchase, operation, maintenance records | Sum of all costs related to a service over its lifecycle | Calculate the comprehensive cost of owning and operating an IT service |
Service Charging Compliance | Charging logs, compliance reports | Percentage of services correctly charged according to policy | Ensure all IT services are charged accurately and in compliance with financial policies |
Financial Efficiency Ratio | Financial records | (IT operational cost / Total revenue) * 100 | Evaluate the efficiency of IT spending relative to the organization's revenue |
Capital Expenditure (CapEx) vs. Operating Expenditure (OpEx) | Financial records | Ratio of CapEx to OpEx | Understand the balance between capital and operational spending |
Service Investment Analysis | Financial reports, service performance data | Analysis of financial investment against service performance | Align financial investments with service delivery outcomes |
Cost Reduction Initiatives | Project reports, financial records | Number of initiatives implemented to reduce costs | Track efforts and effectiveness of cost reduction measures |
Cost Transparency | Stakeholder surveys, financial reports | Degree to which stakeholders understand cost drivers | Improve clarity on what drives costs within IT services for better decision-making |
Billing Error Rate | Billing records | (Number of billing errors / Total bills issued) * 100 | Measure accuracy in the billing process to ensure financial integrity and customer satisfaction |
Financial Compliance Audit Findings | Audit reports | Number of issues found during financial audits | Identify and correct compliance issues in financial management practices |
IT Financial Literacy | Training records | Number of IT staff trained in financial management | Enhance the financial understanding of IT staff to improve financial decision-making |
Budget Utilization Rate | Budget monitoring reports | (Amount spent from budget / Total budget) * 100 | Monitor how effectively the IT budget is being used |
Cost of Financial Management | Financial reports | Total cost associated with performing financial management activities | Evaluate the cost incurred in managing finances relative to the value provided |
Revenue Generated from IT Services | Sales records, financial statements | Total revenue from IT services | Measure the revenue contribution of IT services to the organization |
Financial Planning Cycle Time | Planning documents, timelines | Time taken to complete financial planning cycle | Assess the efficiency of the financial planning process |
Stakeholder Satisfaction with IT Value | Surveys | Stakeholder satisfaction survey results regarding the value derived from IT investments | Gauge how satisfied stakeholders are with the ROI and overall value provided by IT services |
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