Provision of services - Part 3: Management of Performance Measurement - Guidance on the mechanism to measure performance as part of service contracts

This document provides guidance on setting up the mechanism for Performance Measurement management as a part of an entire service contract.
This document is applicable to:
a)   Any organization regardless of its type or size
b)   service buyers; and
c)   service providers who may be inside or outside the service buyers' organization.
This document is not applicable to business-to-consumer (B2C) service contracts or for works contracts.
NOTE 1   ‘Works contracts’ are contracts that have as their object the execution, or both the design and execution, of a work are not covered. Contracts having as their object only the design of a work are covered.
NOTE 2   ‘Work’ means the outcome of building or civil engineering works taken as a whole which is sufficient in itself to fulfil an economic or technical function.

Dienstleistungserbringung - Teil 3: Management der Leistungsmessung - Leitlinien für den Mechanismus zur Leistungsmessung im Rahmen von Dienstleistungsverträgen

Dieses Dokument stellt eine Leitlinie zur Festlegung des Mechanismus für die Steuerung der Leistungs¬messung als Teil eines Gesamtdienstleistungsvertrages bereit.
Dieses Dokument gilt für:
a)   jedes Unternehmen, unabhängig von seiner Art oder Größe;
b)   Dienstleistungskäufer; und
c)   Dienstleister, die innerhalb oder außerhalb der Organisation der Dienstleistungskäufer tätig sein dürfen.
Dieses Dokument gilt nicht für Dienstleistungsverträge zwischen Unternehmen und Verbrauchern (B2C) oder für Bauaufträge.
ANMERKUNG 1   "Bauaufträge" sind Verträge, die die Ausführung oder sowohl die Planung als auch die Ausführung eines Bauwerks zum Gegenstand haben und nicht in diesem Dokument behandelt werden. Verträge, die nur die Gestaltung eines Bauwerks zum Gegenstand haben, werden abgedeckt.
ANMERKUNG 2   "Bauarbeiten" bezeichnet das Ergebnis von Hoch- oder Tiefbauarbeiten insgesamt, das allein ausreicht, um eine wirtschaftliche oder technische Funktion zu erfüllen.

Prestation de services - Partie 3 : Management du mesurage des performances - Recommandations relatives au mécanisme de mesurage des performances dans le cadre des contrats de services

Le présent document fournit des recommandations sur la mise en place d’un mécanisme de management du mesurage de la performance dans le cadre d’un contrat de services complet.
Le présent document s’applique à :
a)   tout acheteur de services et prestataire de services, quels que soient le type, la taille ou la nature des services ;
b)   tout prestataire de services qui peut être interne ou extérieur à l’organisme des acheteurs de services ;
c)    toute partie intéressée qui est directement ou indirectement impliquée dans, ou affectée par, un processus d’achat.
Le présent document ne s’applique pas aux contrats de services entre entreprises et particuliers (B2C) ni aux marchés de travaux.
NOTE 1   Les « marchés de travaux » sont des contrats ayant pour objet soit l’exécution seule, soit à la fois la conception et l’exécution d’un ouvrage et ne sont pas couverts par le présent document. Les contrats ayant pour seul objet la conception d’un ouvrage sont couverts.
NOTE 2   Le terme « ouvrage » désigne le résultat d’un ensemble de travaux de construction ou de génie civil, suffisant en soi pour remplir une fonction économique ou technique.

Zagotavljanje storitev - 3. del: Upravljanje merjenja zmogljivosti - Navodilo za mehanizem merjenja zmogljivosti kot dela storitvenih pogodb

General Information

Status
Published
Public Enquiry End Date
19-Jun-2019
Publication Date
13-Aug-2020
Technical Committee
Current Stage
6060 - National Implementation/Publication (Adopted Project)
Start Date
30-Jul-2020
Due Date
04-Oct-2020
Completion Date
14-Aug-2020

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SLOVENSKI STANDARD
SIST EN 17371-3:2020
01-oktober-2020
Zagotavljanje storitev - 3. del: Upravljanje merjenja zmogljivosti - Navodilo za
mehanizem merjenja zmogljivosti kot dela storitvenih pogodb

Provision of services - Part 3: Management of Performance Measurement - Guidance on

the mechanism to measure performance as part of service contracts

Dienstleistungserbringung - Teil 3: Management der Leistungsmessung - Leitlinien für

den Mechanismus zur Leistungsmessung im Rahmen von Dienstleistungsverträgen
Prestation de services - Partie 3 : Management du mesurage des performances -
Recommandations relatives au mécanisme de mesurage des performances dans le
cadre des contrats de services
Ta slovenski standard je istoveten z: EN 17371-3:2020
ICS:
03.080.01 Storitve na splošno Services in general
SIST EN 17371-3:2020 en,fr,de

2003-01.Slovenski inštitut za standardizacijo. Razmnoževanje celote ali delov tega standarda ni dovoljeno.

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SIST EN 17371-3:2020
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SIST EN 17371-3:2020
EN 17371-3
EUROPEAN STANDARD
NORME EUROPÉENNE
July 2020
EUROPÄISCHE NORM
ICS 03.080.01
English Version
Provision of services - Part 3: Management of Performance
Measurement - Guidance on the mechanism to measure
performance as part of service contracts

Prestation de services - Partie 3 : Management du Dienstleistungserbringung - Teil 3: Management der

mesurage des performances - Recommandations Leistungsmessung - Leitlinien für den Mechanismus

relatives au mécanisme de mesurage des performances zur Leistungsmessung im Rahmen von

dans le cadre des contrats de services Dienstleistungsverträgen
This European Standard was approved by CEN on 3 May 2020.

CEN members are bound to comply with the CEN/CENELEC Internal Regulations which stipulate the conditions for giving this

European Standard the status of a national standard without any alteration. Up-to-date lists and bibliographical references

concerning such national standards may be obtained on application to the CEN-CENELEC Management Centre or to any CEN

member.

This European Standard exists in three official versions (English, French, German). A version in any other language made by

translation under the responsibility of a CEN member into its own language and notified to the CEN-CENELEC Management

Centre has the same status as the official versions.

CEN members are the national standards bodies of Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia,

Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway,

Poland, Portugal, Republic of North Macedonia, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and

United Kingdom.
EUROPEAN COMMITTEE FOR STANDARDIZATION
COMITÉ EUROPÉEN DE NORMALISATION
EUROPÄISCHES KOMITEE FÜR NORMUNG
CEN-CENELEC Management Centre: Rue de la Science 23, B-1040 Brussels

© 2020 CEN All rights of exploitation in any form and by any means reserved Ref. No. EN 17371-3:2020 E

worldwide for CEN national Members.
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SIST EN 17371-3:2020
EN 17371-3:2020 (E)
Contents Page

European foreword ....................................................................................................................................................... 3

Introduction .................................................................................................................................................................... 4

1 Scope .................................................................................................................................................................... 5

2 Normative references .................................................................................................................................... 5

3 Terms and definitions ................................................................................................................................... 5

4 Context ................................................................................................................................................................ 9

5 Performance Measurement model ........................................................................................................ 10

6 Performance Measurement execution ................................................................................................. 13

Annex A (informative) Service Assurance Model .......................................................................................... 16

Annex B (informative) Examples of specific sectors .................................................................................... 19

Bibliography ................................................................................................................................................................. 33

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EN 17371-3:2020 (E)
European foreword

This document (EN 17371-3:2020) has been prepared by Technical Committee CEN/TC 447

“Horizontal standards for the provision of services”, the secretariat of which is held by BSI.

This European Standard shall be given the status of a national standard, either by publication of an

identical text or by endorsement, at the latest by January 2021, and conflicting national standards shall

be withdrawn at the latest by January 2021.

Attention is drawn to the possibility that some of the elements of this document may be the subject of

patent rights. CEN shall not be held responsible for identifying any or all such patent rights.

This document has been prepared under a mandate given to CEN by the European Commission and the

European Free Trade Association.

According to the CEN-CENELEC Internal Regulations, the national standards organisations of the

following countries are bound to implement this European Standard: Austria, Belgium, Bulgaria,

Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland,

Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Republic of

North Macedonia, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey and the

United Kingdom.
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EN 17371-3:2020 (E)
Introduction

This document is part of a series of European Standards that address different phases in the provision

of services (see Figure 1): the service procurement phase (EN 17371-1), the service contracting phase

(EN 17371-2 ) and the service execution phase (EN 17371-3).

Each part of the series can be used individually or in combination with the other parts.

Figure 1 — Phases in the provision of services

The drafting of the series was initiated after CEN presented the findings of a study on the potential and

a possible impact of horizontal service standards on the EU single market for services. This study was as

a response to the standardization request M/517 from the European Commission for programming and

development of horizontal service standards. The objective of this standardization request was to

encourage the development of voluntary European Standards covering issues common to many service

sectors. Such standards should aim to facilitate compatibility between services providers, improve

information and the quality of services to the recipient.

This document aims to facilitate the discussion between the service buyer and the service provider on

service performance. For example, service buyer and service provider can use this standard to:

a) enable benchmarking;
b) facilitate the setting of industry-specific best practice KPIs;
c) enable fair comparison of different approaches;
d) enable comparison between external providers and an internal department;
e) make a clear distinction between facts and, anecdotes or exceptions; and
f) enable escalations to be performed in a structured and well-informed way.

This document also aims at specifying targets for regular services, e.g. in terms of reliability, defect

density, quality as well as targets for response services, e.g. in terms of response and resolution times

and defect removal efficiency. The aim of this document is to provide guidance on the performance

measurement.
Under preparation. Stage at the time of publication: prEN 17371-2.
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EN 17371-3:2020 (E)
1 Scope

This document provides guidance on setting up the mechanism for Performance Measurement

management as a part of an entire service contract.
This document is applicable to:

a) Service buyers and service providers regardless of type, size or the nature of the services; and

b) Service providers who may be inside or outside the service buyers’ organization.

c) Any interested parties who are directly or indirectly involved in or affected by a procurement

process.

This document is not applicable to business-to-consumer (B2C) service contracts or for works

contracts.

NOTE 1 ‘Works contracts’ are contracts that have as their object the execution, or both the design and

execution, of a work are not covered. Contracts having as their object only the design of a work are covered.

NOTE 2 ‘Work’ means the outcome of building or civil engineering works taken as a whole which is sufficient in

itself to fulfil an economic or technical function.
2 Normative references
There are no normative references in this document.
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.

ISO and IEC maintain terminological databases for use in standardization at the following addresses:

— IEC Electropedia: available at http://www.electropedia.org/
— ISO Online browsing platform: available at https://www.iso.org/obp
3.1 Terms related to services in general
3.1.1
capacity management

process at the discretion of a service provider to forecast resource requirements to meet future demand

for services
3.1.2
change management

process between a service buyer and service provider to control changes to the services

3.1.3
problem management

process to undertake root cause analysis and determine potential actions to prevent the occurrence or

recurrence of service incidents, and to minimize the impact of service incidents that cannot be

prevented.
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3.1.4
quick fix

method to address the symptoms of a service incident as initial response and to reach at least a level of

minimum acceptable service performance

Note 1 to entry: A quick fix is not a permanent solution to fix the root cause of an incident.

3.1.5
regular service
continuous or periodic provision of a service by a service provider

Note 1 to entry: The primary focus is on satisfying pre-documented and agreed requirements of service buyer.

3.1.6
service

intangible output and result of a process that includes at least one activity that is carried out at the

interface between the supplier(provider) and the customer

Note 1 to entry: Service provision can take many forms. Service can be provided to support an organization’s

own products (e.g warranty service or the serving of meals).

Note 2 to entry: Conversely, a service can be provided for a product supplied by a customer (e.g. a repair service

or a delivery service).

Note 3 to entry: Service can also involve the provision of an intangible thing to a customer (e.g. entertainment,

ambience, transportation, or advice).
[ISO 9000:2015]
3.1.7
service buyer
organization that buys services from a service provider

Note 1 to entry: In public procurement, the service buyer may also be known as the contracting

authority/entity.
3.1.8
service incident

unplanned interruption to a service, or a reduction in the quality of a service, or an event that can

impact the service to a service recipient
3.1.9
service nonconformity
failure to meet a service performance target or other contractual obligations
3.1.10
service provider

organization or part of an organization that offers, delivers and/or manages one or more services

Note 1 to entry: Service providers can be external or internal to the service buyer’s organization.

3.1.11
service recipient
organization or a natural person who receives a service
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EN 17371-3:2020 (E)

Note 1 to entry: Examples of service recipients include end users, consumers, clients, beneficiaries, and retail

customers.
3.1.12
service request

request for information, advice, investigation, access to a service or a pre-approved change within the

scope of the services
Note 1 to entry: A service request is usually unplanned or ad hoc.
3.1.13
service response

process between a service buyer and service provider to deal with service requests and to respond to

service incidents

Note 1 to entry: The primary focus is on satisfying unplanned requirements of service buyer and dealing with

unexpected issues.
3.2 Terms related to Performance Measurement
3.2.1
attribute

measurable and tangible aspect relevant to service delivery including physical observations and

recipient perception of a service.
3.2.2
key performance indicator
measure that quantifies performance of a service

Note 1 to entry: A key performance indicator provides quantitative information about regular services, e.g. in

terms of reliability, defect density, quality and availability, and about response services, e.g. in terms of response

times, resolution times and defect removal efficiency.

Note 2 to entry: Key performance indicators refer to a certain time period, e.g. hour, day, week, month, quarter

or year. It is important to follow the development of the value of a key performance indicator with the course of

time (trend).
3.2.3
measurement period
time period in which the measurement is done and service metrics are gathered

Note 1 to entry: The start of a measurement period is characterized by resetting all data points of the Performance

Measurement Model.
3.2.4
minimum acceptable service performance

level of a key performance indicator that may be lower than the service performance target but that

allows a service buyer to meet the business obligations of the service
3.2.5
operating window
time period for the operation of regular services

Note 1 to entry: A service provider may define additional windows where different service performance targets

apply, e.g. to differentiate between office hours and night shifts and between office days and weekends.

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3.2.6
reaction time

service metric that represents the time between either the logging or the notification of a service

incident or the issuance of a service request and the moment a service provider acknowledges to a

service buyer

Note 1 to entry: Examples of logging or notification of a service incident include an alert or a phone call by an

impacted person.
Note 2 to entry: Example of a service request is a ticket.
3.2.7
resolution time

service metric that represents the time between the logging or notification of a service incident or the

issuance of a service request, and the moment a definitive solution is implemented that meets the

service performance target

Note 1 to entry: The implementation of a definitive solution may be dependent on the processes of third parties

or on processes of the service buyer.
3.2.8
restoration time

service metric that represents the time between the logging or notification of a service incident or the

issuing of the service request, and the moment the service provider provides a quick fix

3.2.9
sampling

taking a number of service units into account relative to the total number of service units

3.2.10
service indicator
service metrics analysed and summarized in a representative way.

Note 1 to entry: Summarizing service metrics can include statistical analysis to balance accuracy and cost

relative to sampling.
3.2.11
service metric

value obtained by measuring and collecting data points of agreed attributes over time

Note 1 to entry: A service metric can also be composed of base measures and derived measures.

Note 2 to entry: A service metric can also be delivered by an instrument, device or automated tool.

3.2.12
service performance

actual level of a key performance indicator relative to the agreed service performance target

3.2.13
service performance target

target level of a key performance indicator to express the need, expectation, or obligation of a service

buyer
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EN 17371-3:2020 (E)
3.2.14
service unit
granularity with which services are measured and reported

Note 1 to entry: A service unit can be expressed as a ‘single delivery of service to a person’ or as the delivery of

services per ‘unit of time’, ‘unit of space’, ‘volume of work’ (e.g. number of people, number of locations or number

of function points) or any other relevant unit.
4 Context

Before starting the service procurement phase, the service buyer should articulate its ‘business goals.’

Goals might be expressed as balanced business objectives that include financial, organizational,

customer, corporate identity and legal perspectives. The service provider should show that its services

contribute to meeting these goals and performance targets should be derived from these goals.

This document addresses the different phases of service sourcing: the service procurement phase, the

service contracting phase and the service execution phase.

During the service procurement phase, the service provider and service proposition are selected that

effectively meet the service buyer’s business goals and service requirements. The service provider

should use service performance targets to demonstrate how their service proposition meets the goals.

The service buyer and service provider may use benchmarking to compare performance with an

industry sample, with another part of the same organization or with the same part of the organization

from a previous period of time.

During the service contracting phase, the agreement between the service buyer and service provider is

defined. The service buyer and service provider should use this document to specify the service

provider’s commitment for the service performance targets relative to their service proposition in the

form of a Service Level Agreement.

During the service execution phase, the services are provided to the service buyer including responses

to service requests and service incidents. The service buyer and service provider should use this

document to measure service performance against the agreed service performance targets.

Measuring service performance is a part of a “control cycle” (see Figure 1). The key performance

indicators should provide the information which is required by the management of the service buyer

and service provider in a manner that eliminates misinterpretation (see Figure 2). Careful selection of

suitable key performance indicators together with clear and unequivocal definitions is therefore

necessary. In practice the service performance target is often defined not as a single value but as a range

within which the value of a key performance indicator should stay.

Failure to meet service performance targets might result in the following considerations:

• improving the processes at the discretion of the service provider (escalation level 1);

• renegotiating the service contract or applying service penalties / service credits (escalation level 2

to the service contracting phase);

• revisiting the procurement (escalation level 3 to the service procurement phase);

• resetting the goals and requirements (escalation level 4).

Figure 2 illustrates this “control cycle” and the interaction between service Performance Measurement

and the service sourcing phases.
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SIST EN 17371-3:2020
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Figure 2 — Service execution in the service sourcing phases

This document specifically addresses the activities listed between the dashed lines:

a) offering a service proposition and demonstrating that goals can be met by using service

performance targets in the service procurement phase;

b) committing to a service proposition by committing to service performance targets in the service

contracting phase;

c) measuring service performance by comparing key performance indicators against service

performance targets in the service execution phase.

To make this document as practical as possible, it includes information on a Service Assurance Model

with maturity levels as well as examples of how to implement the document in different sectors. See

Annex A: Service Assurance Model Annex B: Examples of specific sectors.
5 Performance Measurement model
5.1 General

The service Performance Measurement model described in Figure 2 is an interpretation of the

measurement information model presented and explained in [ISO/IEC/IEEE 15939]. The model helps

to define the service Performance Measurement structure to facilitate service monitoring,

measurement, analysis, and evaluation. The core of the model is that it makes a strong distinction

between measurements and indicators. Measurements and data collection provide statistics and

anecdotal evidence, while indicators provide management information.

The model describes how attributes of relevant entities can be quantified and converted to indicators

that provide a basis for decision making. The model is a structure which starts with linking information

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needs to the relevant attributes of concern. For example, the information need can be how responsive a

service provider is to service incidents. Attributes include elements of processes, physical quantities,

and perceptions such as temperature, food taste, number of defects, and availability. From these

attributes, service metrics can be deduced. And from service metrics, according to the significance and

importance to the service buyer’s goals, key performance indicators can be deduced.

Figure 3 — Service Performance Measurement model
5.2 Measure and collect to obtain Service Metrics

The measure and collect method is the low-level process to collect attribute data from devices,

instruments, tools and surveys. The collection of data should be sufficiently scalable in order to obtain

representative large samples. For physical observations, an attribute should be observed over time in

order to level out spikes and outliers in an appropriate, documented and agreed way. When capturing

perceptions of service recipients using survey questions, responses should be obtained using a

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normalized scale. Such scale can, for example, be a variation of “very good”, “good”, “rather bad”,

“disgusting”.
5.3 Convert and aggregate to calculate Service Indicators

The convert and aggregate process converts the raw service metrics (for example for reasons of

normalization) and aggregates them into representative service indicators. In order to provide

meaningful service indicators, the aspect ‘representative’ is critical, which means that an appropriate,

documented and agreed sampling strategy should be adopted to avoid false conclusions. For example, a

sample of two incidents where one failed to meet its target would show a failure rate of 50 % which

would be an unfair reflection on such a small sample. A sample of one failure out of 100 incidents would

show a failure rate of 1 % which would be a fair reflection.

Sampling and the corresponding service indicators should be reset at the start of each measurement

period.

NOTE 1 It can be useful to use statistical analysis techniques. Specifying statistical analysis, however, is not in

the scope of this document.

NOTE 2 A service indicator can be mapped one-to-one onto a service metric in case the latter has sufficient

statistical relevance in itself.
5.4 Weight and combine to calculate Key Service Indicators

The weight and combine method is the process of weighting the service indicators and combining them

into key performance indicators to provide insight on actual service performance.

The service provider and service buyer should agree on key performance indicators and associated

service performance targets to reflect the service buyer’s goals with sufficient levels of accuracy,

completeness and confidence. The service provider and service buyer should avoid to simply use

attributes and service metrics as key performance indicators.

NOTE Weighting factors can be used to differentiate between normal service operating windows and other

windows, e.g. night shifts and weekends.

EXAMPLE A key goal of the service buyer is to “offer its employees a canteen with a variety of qualitative

lunches”, then service performance could be measured as follows:
• Determining which attributes of the goal can possibly be measured:
a) perception of taste of a meal by an employee
b) perception of visual presentation of a meal by an employee
c) composition of a meal
• Calculating individual service metrics:

i. response to a survey question on a scale of “very good,” “good,” “rather bad,” “disgusting”

ii. response to a survey question on a scale of “attractive,” “good,” “not appealing,” “awful”

iii. logging the ‘meal composition’ as ‘ingredients and cooking style’
• Aggregating the results into representative service indicators:

1. perceived quality of the meals on a combined scale of “very good,” “rather good,” “rather bad,” and “bad”

based on a sample of 10 % of the employees surveyed on 3 separate dates within a specific month

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2. number of different meal compositions in a specific month relative to the number of business days

• Determining the key performance indicator for “serving qualitative lunches”:

o (% of meals perceived as “very good”) x weight-1 + (% of meals perceived as “good”) x weight-2 + (% of

different meal compositions) x weight-3
6 Performance Measurement execution
6.1 General

The service Performance Measurement structure distinguishes measurement of the regular services

provided on a continuous/periodic basis and measurement of the processes between customer and

provider in response to requests and service incidents.
6.2 Measuring regular services

Regular services refers to the recurring (continuous or periodic) provision of services. The primary

focus is on satisfying the documented needs of service recipients.

Regular services require a continuous availability of adequate resources, e.g. trained and motivated

staff, an appropriately sized infrastructure, tools, processes and consumables. For example, over time

infrastructure might need to be upgraded, replaced, or retired; service delivery staff might need to be

retrained, augmented, rotated, or reduced; and consumables might need to be replenished to ensure

that the service is delivered in accordance with service agreements.

Measuring regular services involves the three levels of the service Performance Measurement model for

the recurring (continuous or periodic) provision of services.

In order to provide the regular services, service provider may perform capacity management. Since the

capacity management process should be left at the discretion of service provider, it is not targeted by

this document.
6.3 Measuring response services
6.3.1 Service request lifecycle

Even given recurring regular services, customers and service recipients should be able to notify the

service provider of their needs for specific instances of service delivery. These needs can be

communicated in different ways, including tickets, face-to-face encounters, phone calls, e-mails, and

even non-verbal signals (pressing the bell button at a reception desk).

Regardless of its type of notification, a service request identifies one or more desired services that the

requestor expects to be included in the scope of an existing service agreement. These requests are often

generated over time by customers and service recipients as their needs develop. In this sense, service

requests are triggering events that cause service delivery to occur.

To fulfil a request, processes such as capacity management, problem management and change

management might need to be invoked. A service request which is deemed to represent a change

relative to the original intent and scope of the service agreement is out of the scope of this document.

However, a service request which is requesting a change to the service to correct an error or make an

improvement is within the scope of this document.

Measuring a request fulfilment process involves measuring the lifecycle of all service requests. The

lifecycle includes capturing service requests and fulfilling them within the service performance targets.

The lifecycle of a request might include approving, prioritising and scheduling it and notifying the

requestor of its status. Measuring the lifecycle might involve logging all key
...

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