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