5 Essential Insights to Master Metrics and KPIs in Service Management

Metrics and KPIs are the lifeblood of effective service management. They help organizations tell their story, align with business goals, and drive meaningful outcomes. Yet, many professionals struggle with identifying the right metrics, defining their value, and using them to guide decision-making. If you’ve ever felt overwhelmed by the sheer volume of data or unsure about how to measure success, Doug Tedder’s insights from his recent presentation at the ICMI and HDI Idea Exchange offer a roadmap to clarity.

Doug Tedder, a recognized thought leader in service management and recipient of the 2025 HDI Lifetime Achievement Award, has spent nearly 30 years helping organizations navigate the complexities of metrics and reporting. In his engaging September session, Doug shared actionable strategies to help service management professionals not only measure performance but also tell their story effectively. Here are five essential insights from Doug’s presentation to help you master metrics and KPIs in your organization.

1. Understand the Difference Between Outputs and Outcomes

One of the most common mistakes organizations make is focusing solely on outputs rather than outcomes. Outputs are the tangible results of processes, like the number of calls handled or tickets resolved. While these are important, they don’t tell the full story. Outcomes, on the other hand, reflect the value delivered to the organization or customer.

Doug illustrated this concept with a simple analogy: delivering a pizza. The pizza itself is the output, but the taste and satisfaction it provides are the outcomes. Similarly, in service management, resolving 10,000 tickets is an output, but ensuring customer satisfaction and business alignment are the outcomes that truly matter.

To avoid this pitfall, always ask: What is the outcome we’re trying to achieve, and how do our outputs contribute to it?

2. Align Metrics with Organizational Strategy

Metrics should never exist in isolation. Doug emphasized the importance of aligning metrics with your organization’s mission, vision, goals, and objectives (MVGO). These elements act as your North Star, guiding what you measure and why.

For example:

• Mission: Why does your organization exist?

• Vision: Where is your organization headed?

• Goals: What steps will help achieve the mission and vision?

• Objectives: How do you measure success toward those goals?

By grounding your metrics in MVGO, you ensure they are purposeful and relevant, rather than arbitrary or reactive.

3. Focus on Key Performance Indicators (KPIs)

Not all metrics are created equal. Doug explained that while there are thousands of things you can measure, only a select few qualify as Key Performance Indicators (KPIs). KPIs are metrics that directly support critical business objectives and drive decision-making.

To identify KPIs, ask:

• Does this metric underpin a critical business goal?

• Would the organization invest resources to achieve this metric?

• Does this metric reveal trends that impact strategy?

For example, measuring “first-call resolution rate” might be a KPI for a support center focused on efficiency and customer satisfaction.

4. Tailor Metrics to Your Audience

Doug stressed the importance of understanding your audience when reporting metrics. Different stakeholders have different priorities, and your reports should reflect that.

For instance:

• Business Executives: Focus on outcomes that align with organizational goals, such as customer satisfaction or revenue impact.

• IT Leaders: Highlight operational efficiency and alignment with IT strategy.

• Team Members: Share metrics that motivate and guide performance, like individual contributions to team goals.

By tailoring your metrics to each audience, you ensure your reports are actionable and resonate with their needs.

5. Use Metrics to Tell Your Story

At the heart of Doug’s presentation was a powerful reminder: Metrics are a way to tell your story. They provide a window into the value your team delivers and the challenges you overcome.

Doug encouraged attendees to ask two key questions:

• What do I need my audience to know?

• What do they want to know?

When you answer these questions, you can craft reports that show your team’s value and build trust and credibility across the organization.

Join Doug Tedder at Service Management World

Doug’s expertise in metrics and KPIs is just the tip of the iceberg. At Service Management World, he’ll be leading the Support Center Manager class and sharing even more actionable insights to help you elevate your service management practices.

Don’t miss this opportunity to learn from one of the industry’s top thought leaders. Register now and use the code JOINUS to save $400 on your registration.