Monday, October 3, 2016

The Monthly Performance Insight: IT Performance Management Oct. 2016

CIOs need to focusing on managing IT performance effectively via selecting key indicators, measuring both the right things and measuring them in the right way.

Corporate Performance Management is a management control from strategy till shop floor. "If you can't measure, you can't manage," legendary management guru Peter Drucker once asserted. He was right Managing performance means understanding results, setting metrics, fixing plans, and making decisions to ensure it happens. It takes multifaceted approaches from multidimensional perspectives.

 IT Performance Management

Three Challenging Aspects of Performance Indicators? You can only manage what you measure, Performance measures and management is not a simple task though, approximately there’re more than ten thousand KPIs around today, a bit overwhelming, let's not forget that there is a "K" in KPI for a reason: Why do you select the certain set of performance measures? What’re the most challenging aspects of working with KPIs? How to leverage the right set of performance indicators in measuring whether the organization is functioning well or dysfunctional? Which management metrics shall you apply to measure organizational overall health and maturity? Who and what tools are being applied to measure if an organization is healthy or sick? Proactive or reactive? Intelligent or dumb? Customer-centric or operational driven? And what are those challenging aspects of performance measurement??

Five Digital Capabilities to Improve IT Performance IT plays a significant role in building business competency and driving digital transformation. IT needs to continually assess its own capabilities and evaluate overall performance via multidimensional lenses and via a set of questions, such as: How to map IT strategy to business strategy? What things are in place that will enable the business strategy? What can be done to strengthen them? What things are in place that will inhibit or endanger the business strategy? What can be done to minimize them? Are the right skills in place? Are projects delivered not just on time, on budget, but more importantly on VALUE? Are costs in line with the long-term plan and short-term goals? How can IT make a continuous delivery of improving its own performance and overall business results?

How to Improve IT Performance via Objective Assessment? Many IT organizations are at the inflection point for digital transformation, they are also reinventing themselves from a cost center to a value-added business partner, and continue to improve IT efficiency, effectiveness, and agility. Therefore, making an objective IT assessment helps IT management to diagnose the early signal for dysfunctional IT, as well as help to take a critical look at IT strength and weakness, in order to move up its overall maturity.

Three Aspects of IT Performance Management: Traditional IT organizations were running inside-out operation driven, CIOs and technique managers assess IT performance via the lenses of IT, and mainly about “keeping the business bottom line.” Hence, business partners perceive IT as a cost center, or support desk only, because they don’t have a clear picture with quantitative information about contemporary IT's value proposition, and thus, lack of knowledge on how critical IT contributes to the business’s top-line growth and customer satisfaction. Thus, managing performance and improving IT reputation means understanding results, setting metrics, fixing plans, and making decisions to ensure the strategic goals are on the right track to get implemented, and communicated effectively at the different level of the business. In order to reinvent the tarnished reputation of IT, CIOs need to focusing on managing IT performance effectively via selecting key indicators, measuring both the right things and measuring them in the right way.

IT Management Dashboard The dashboard is an effective method to show IT value. The dashboard is also a good tool to provide input to the decision maker such as IT leaders and managers. Further, it encourages the IT departments to create their own marketing plan for dealing with their different 'customers inside and outside of the organization.?

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