What should be the best value for Incident Closure Rate KPI (70%, 80% or 90%)?

[VCN]

We are checking the Incident Closure Rate using the below formula and would like to understand the standard/best practice for this KPI.

Incident Closure Rate = (Total No. of Incidents Closed/Total No. of Incidents Created/Opened)*100

[AndersBGS]

Hi @VCN ,

Don't think you get a best practice, do to it differs from company to company. Furthermore, out of curiosity, what will you gain from the number/What will it show you? 

If my answer has helped with your question, please mark my answer as accepted solution and give a thumb up.

best regards

Anders

[VCN]

Hi @AndersBGS ,

Thanks for your reply.

Yeah, that's what I thought of but I was just thinking if there would be any standards to maintain this KPI since my customer is looking for recommendations on this KPI.

This is to know how effectively the teams are working on the Incidents created and how successful they are in resolving the tickets. 

[AndersBGS]

Hi @VCN ,

Ok, but basic, if I should give a recommendation for the KPI, then I would say that it really doesn't show much. It could be that a lot of incidents has been generated hence the backlog has grown and by that the incident closure rate has dropped. On the other hand, if business is running smoothly and no incidents is generated, then more incidents will be resolved than created, and by that have a incident closure rate at +100 or more... 

If my answer has helped with your question, please mark my answer as accepted solution and give a thumb up.

best regards

Anders

[Cheshire Cat]

From a lean perspective, incidents are defined as waste. They are either unplanned interruptions of service or reduction in quality of services provided. Because IT application services are tied to business services an organization provides, these incidents create a loss in productivity and diminished internal & external customer morale. For IT, Incidents slow their ability to complete requests, projects, affect morale, and overload our already full schedules.

The question your IT customer should be asking is how they can reduce the number of incidents to improve both their internal & external customer experience with IT services, but also improve their own work life. What would be the impact if they could reduce the number of incidents instantiated? What would be the impact if they could reduce the number of incidents resolved by support greater than first level? How would this improve their internal & external customer experience in addition to their own stress level?

Incident Management is tied to several other practices and a broader but concise set of metrics (3-5) should be used to drive practice improvement. KPI’s examples I would recommend off the top of my head would be number of incidents resolved by second level support or greater without a knowledge article attached to the incident, number of users who browse a service portal knowledge base who create incidents or cases (User Experience Analytics), percentage of incidents reassigned at least once, percentage of SLA breaches, percentage of incidents tied to active problems.