The Multi-faceted IT Performance Measurement
Three Levels of IT Performance Management IT is an enabler of current and future business capability for both the organization and its ecosystem, It should be framed in respect of the organizational activities and practices, contribute both strategically and operationally to capture both short-term gain and long-term win of the business. As there are different target audiences who are interested in IT value presentation such as IT staff, business leaders or customers, and each has a different focus. It is a very good idea to make IT metrics transparent to the varying departments. It’s also important to develop a systematic measurement approach to assess its multi-dimensional value beyond just monetary benefit. Here are three levels of IT performance management.
Taking a Logical Scenario for Measuring IT Performance Organizations rely more and more on information and technology. IT is a key enabler to build almost all differentiated business digital capabilities nowadays. IT needs to be run as a business in the business. IT performance has to be clearly linked with business performance and IT should work with stakeholders to develop the right set of measurements that shows how IT is improving business execution and enforcing business capabilities. It’s important to take a logical scenario for managing IT performance by measuring right, adjusting plans, understanding results dynamic, and making business decisions to ensure the strategic goals are on the right track to achieve.
CIOs as “Chief Improvement Office”: IT Performance Quadrants Forward-looking IT organizations are transforming from a cost center to a value creator, from a support desk to the “digital brain” of the business, and from a back office function to an innovation engine. IT should also shift from inside-out IT lens to measure performance to an outside-in business and customer lens to manage the stakeholders’ expectation which is the key to the success of IT. So, depending on which stakeholder and what the role of the CIO is to your organization, metrics can be created that show effectiveness, efficiency, and maturity of IT. Plus, IT measurement should be focused on what is relevant to the target audience with a clear purpose as to what is being measured and why. Here are the IT performance Quadrants which help IT move up its maturity and demonstrate multidimensional business values.
Measure Things Matter to Drive IT Digital Transformation Forward-thinking IT organizations reach the inflection point of digital transformation. A strategic inflection point is a time when the business fundamentals such as people, process, technology, or cultures are about to change with accelerated speed. A measurement system is a necessary foundation for continuous improvement. CIOs need to understand how to measure IT performance with the right reasons, identify the right measurement and measure them in the right way to drive IT transformation smoothly.
CIOs as "Chief Investment Officer": Three Aspects of IT Performance Measurement IT organizations today intend to reinvent the tarnished image since traditional IT is still being labeled as a cost center and support desk only. Because its business value hasn’t been conveyed in a structured or quantified way yet. And it only focuses on measuring internal value (cost efficiency, internal customer satisfaction), or the things only internal IT is interested in. The measures often do not reflect the full set of value IT can bring to accelerate business growth or delight end customers. If we can only manage what we measure, the issue here is how to measure IT performance effectively?
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2 comments:
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