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Key Performance Indicators



Some of the KPIs and metrics that can be used to judge the efficiency and effectiveness of the Capacity Management activities should include:

  • Accurate business forecasts:
    • Production of workload forecasts on time
    • Percentage accuracy of forecasts of business trends
    • Timely incorporation of business plans into the Capacity Plan
    • Reduction in the number of variances from the business plans and Capacity Plans.
  • Knowledge of current and future technologies:
    • Increased ability to monitor performance and throughput of all services and components
    • Timely justification and implementation of new technology in line with business requirements (time, cost and functionality)
    • Reduction in the use of old technology, causing breached SLAs due to problems with support or performance.
  • Ability to demonstrate cost-effectiveness:
    • Reduction in last-minute buying to address urgent performance issues
    • Reduction in the over-capacity of IT
    • Accurate forecasts of planned expenditure
    • Reduction in the business disruption caused by a lack of adequate IT capacity
    • Relative reduction in the cost of production of the Capacity Plan.
  • Ability to plan and implement the appropriate IT capacity to match business needs:
    • Percentage reduction in the number of incidents due to poor performance
    • Percentage reduction in lost business due to inadequate capacity
    • All new services implemented match Service Level Requirements (SLRs)
    • Increased percentage of recommendations made by Capacity Management are acted on
    • Reduction in the number of SLA breaches due to either poor service performance or poor component performance.

Information Management

The aim of the CMIS is to provide the relevant capacity and performance information to produce reports and support the Capacity Management process. These reports provide valuable information to many IT and Service Management processes. These reports should include the following.

Component-based reports

For each component there should be a team of technical staff responsible for its control and management. Reports must be produced to illustrate how components are performing and how much of their maximum capacity is being used.

Service-based reports

Reports and information must also be produced to illustrate how the service and its constituent components are performing with respect to their overall service targets and constraints. These reports will provide the basis of SLM and customer service reports.

Exception reports

Reports that show management and technical staff when the capacity and performance of a particular component or service becomes unacceptable are also a required from analysis of capacity data. Thresholds can be set for any component, service or measurement within the CMIS. An example threshold may be that processor percentage utilization for a particular server has breached 70% for three consecutive hours, or that the concurrent number of logged-in users exceeds the agreed limit.



In particular, exception reports are of interest to the SLM process in determining whether the targets in SLAs have been breached. Also the Incident and Problem Management processes may be able to use the exception reports in the resolution of incidents and problems.





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