Defining business value in units meaningful to the business and connecting these to the measures of performance for the project that produce this business value.
5. Positioning
BSC has many confusing and sometimes conflicting definitions
IT Performance Management applies these concepts to the strategic,
tactical and operational aspects of IT
5/104
8. Drivers
† “The Balanced Scorecard: To Adopt or not to adopt?” Kevin Hendricks, Larry Menor
and Christine Wiedman, Ivey Business Journal, Nov/Dec 2004
8/104
9. Drivers
Balanced Scorecard would more likely benefit firms that
followed a Prospector or Analyzer strategy, and likely not
benefit firms that followed a Defender or Reactor strategy.
† “The Balanced Scorecard: To Adopt or not to adopt?” Kevin Hendricks, Larry Menor
and Christine Wiedman, Ivey Business Journal, Nov/Dec 2004
9/104
11. Drivers
“There is no such thing as a free lunch,” — Milton Friedmann
† “New Math for the New Economy,” Baruch Lev, Fast Company, 31, January, 2000
11/104
14. Approach
Balanced Scorecard Is 1 Of 4 Needed Capabilities For Success
Business and Technology Governance
Competitive Advantage
Real Options Enterprise
Sustained
Capabilities
Balanced Based Program &
Based
Scorecard Portfolio Project
Planning
Management Management
Enterprise Class Tools and Work Processes
Readiness Assessment
Mobilization
Alignment
Sustainment
14/104
15. Approach
Mission and Vision are starting points for developing a Balanced
Scorecard from the “top down.” Without a Mission and Vision, the
underlying performance measures have no foundation on which to rest.
Balanced Scorecard
Mission Why We Exist
Values Guiding Principles
Vision Picture of the Future
Strategy Differentiating activities
15/104
16. Approach
Identifying the strategic initiatives that support the organization strategies is key
beneficial outcome of deploying a Balanced Scorecard in IT
General Mission What do we do?
Strategic Themes Why is it important?
Desired Outcomes What results do we want?
How will we know when we’ve
Metrics achieved these results?
What specific actions do we
Strategic believe will lead to these results?
Initiatives
Connecting specific actions with the strategy of the
firm is the role of a Balanced Scorecard
16/104
17. Approach
The four phases of the Balanced Scorecard deployment are broad and
general purpose, focused on increasing maturity. The details of the
deployment must be developed in order to achieve success
Readiness Mobilization Alignment Sustainment
Assess readiness Mobilize change Translate the Motivate the staff
for BSC initiative through executive strategy Govern the
Identify gaps & leadership Align the organization
closure plans organization
Conduct Achieve Define and clarify Focus the staff
Readiness commitment from the strategy Align
Assessments the top connections accountability and
• Cultural Build the Establish long rewards
• Operational executive team term targets Develop human
• Data Build the case for Communicate the capital
• Governance change strategy Re–define
Identify and close Identify initial Connect measures governance
gaps KPIs, CSFs, Goals with strategies Get results
Prepare for and Initiatives
deployment Identify target
strategies
Discovery Missionary Change Agent Strategy Focused
17/104
18. Approach
Readiness Mobilization Alignment Sustainment
Translate the strategy
Assess readiness for
BSC initiative
Mobilize change
through executive Align the organization
Motivate the staff
Govern the
The four phases of the
Identify gaps & leadership organization BSC deployment are a
closure plans
sequence that builds
Conduct Readiness Achieve commitment Define and clarify the Focus the staff
Assessments from the top strategy connections Align accountability the increasing maturity
• Cultural
• Operational
Build the executive
team
Establish long term
targets
and rewards
Develop human of the scorecard.
• Data Build the case for Communicate the capital
• Governance change strategy Re–define
Identify and close Identify initial KPIs, Connect measures governance
gaps CSFs, Goals and with strategies Get results
Prepare for Initiatives
deployment Identify target
strategies
Discovery Missionary Change Agent Strategy Focused With the scorecard in place, the
Capabilities needed to fulfill the
strategy, the options trade–offs
for existing and future projects,
and the enterprise tools to
manage this portfolio.
Business and Technology Governance
Competitive Advantage
Real Options Enterprise
Sustained
Capabilities
Balanced Based Program &
Based
Scorecard Portfolio Project
Planning
Management Management
Enterprise Class Tools and Work Processes
18/104
19. Approach
† Alignment: Using Balanced Scorecard to Create Company Synergies,
Norton and Kaplan, Harvard Business School Publishing Company, 2006
19/104
20. Approach
Clarify mission &
Mission Vision statement
Vision
Develop
Strategic Goals
Strategic Goals
Balanced Scorecard
Derive Strategy Map
Sub–Goals Sub–Goals Stakeholder Perspective
Service Attributes Relationships Image
Recognition Stakeholder
Application Quality Time to Delivery System Capabilities
of Value Relations
Internal Processes Perspective
Map Sub-Goals to Operations
Management
Stakeholder
Management
Innovation
Processes
Regulatory
Processes
each quadrant of the Learnings & Growth Perspective
Human Capital
Information Capital
Balanced Score Card Culture
Organizational Capital
Leadership Alignment Teamwork
Budget Perspective
Project Budget Resource
Performance Management Management
GQ(I)M KPI’s, Targets,
Goal
Question
For each BSC Quadrant CSF’s for each
Indicator Objective
Measure Apply GQ(I)M to: Indicators
– Identify measurement areas
Trouble Reports
– Develop measurement goals
– Pose relevant questions Module
Derived from – Postulate indicators Performance Data
“Developing Enterprise–Wide
Measures for Tracking
– Identify data elements Elements
Performance,” Software
Engineering Institute
20/104
21. Approach
Focusing on Goals, the Success Criteria separates the measures of success
from the task progress indicators. This separation distinguishes physical
progress from business value – both are needed, but they are not the
same.
Success
Goal Criteria
Strategy to Success Indicators
accomplish
the goal %
1 2 3 4 1 2 3 4
Reporting Periods
Analysis Indicators
100
80
60 Tasks to Accomplish
40
20 goal
Tasks Progress Indicators
Task 1
Task 2 100 Actual
Test Cases
Complete
80
Task 3 60
• 40 Planned
Functions
• 20
Task n Reporting Periods
Derived from “Developing Enterprise–Wide Measures for Tracking Performance,” Software Engineering Institute”
21/104
22. Approach
GOAL(s)
Question 1 Question 2 ••• Question n
SLOC Staff-hours Trouble Reports Milestone Dates
Derived from “Developing Enterprise–Wide Measures for Tracking
Performance,” Software Engineering Institute``
22/104
23. Approach
IT Development
Balanced
Scorecard
Business IT
Balanced Balanced
Scorecard Scorecard
IT Operations
Balanced
Scorecard
23/104
27. Themes
If executives are having a normal meeting and talking about strategy, but
instead focusing on tactics – then they’re not fulfilling their roles as
leaders of their respective organizations
27/104
32. Positioning
From, Functions of an Executive, Chester Barnard, 1938.
Barnard laid the foundations of management theory. Bernard is widely
credited with having originated the “Systems” approach to the study of
organizations. He recognized that in order for the organization to survive in
the external environment and to succeed in the long run, it was necessary
to sustain cooperation from employees by satisfying the condition of
efficiency.
32/104
36. Positioning
The original 4–quadrant BSC fails to make the cause and effect connection
between action and outcome – strategy maps replace this approach and
show how to “connect the dots”
1.
2.
3.
36/104
37. Positioning
A scorecard practice should move the client toward the 3rd generation.
They’ll have to get there eventually in order to impact their organization
– might as well start out headed in that direction on day one.
First Generation Second Generation Third Generation
BSC as a BSC as a
BSC as a framework for
performance management
organizational change
evaluation system system
• Performance measures • Organizational learning • Organizational change
• Breakdown of strategy • Identifying and solving • Strategy maps
• Four perspectives operational problems • Strategy patterns
• Strategic objectives, • Feedback for planning • Integration of budget
performance indicators, key • Organizational and personnel plans
performance parameters knowledge • Changing the
• Performance linked to organizational behavior
compensation
37/104
42. Positioning
The four primary barriers that lay the seeds of strategy failure …
Only 10% of organizations successfully execute their strategies
Vision Barrier
Only 5% of the workforce 85% of executive teams spend
understands the strategy less than one hour per month
Informed action is virtually discussing strategy
impossible without sound Without a clear and concise
knowledge of the organizations blueprint for success – the
strategy strategy – manage will focus
People Barrier on financial and operational
details
Only 25% of managers have Resource Barrier
incentives linked to strategy
Incentives linked to short- 60% of organizations don’t
term financial targets, leads to link budget to strategy
less than rational decision Based on strategy, what
making at the expense of long initiatives distinguish us from
term sustainable success our competition?
† Norton and Kaplan and, in Balanced Scorecard Diagnostics: Maintaining Maximum Performance,
Paul R. Niven, John Wiley & Sons and Strategy Safari, Mintzbert, Ahlstrand and Lampel, The Free
Press, 1998.
42/104
43. Positioning
Instituting change is at the heart of a successful Scorecard
In many studies of patients who have undergone coronary bypass
surgery, only one in nine people, on average, adopts healthier day-to-day
habits […] [even if] they clearly see the value of changing their behavior.
“The Neuroscience of Leadership,” David Rock and Jeffery Schwartz, strategy+business, Summer 2006
43/104
44. Positioning
All five components of strategy are needed for true success
Vision Skills Incentives Resources Action Plan Success
Vision Skills Incentives Resources Action Plan Confusion
Vision Skills Incentives Resources Action Plan Anxiety
Incentives Resources Action Plan Gradual
Vision Skills
Change
Vision Skills Incentives Resources Action Plan Frustration
Vision Skills Incentives Resources Action Plan False Starts
44/104
45. Positioning
The BSC must be placed in the context of process improvement
Deriving Enterprise-Based Measures Using the Balanced Scorecard and Goal-Driven measurement Techniques, Wolfhart
Goethert and Matt Fisher, Software Engineering and Measurement Analysis Initiative, CMU/SEI-2003-TN-024, October 2003
45/104
46. Positioning
A simple set of goals provides a good staring point for a BSC
Strategies Key Performance Indicators
Customer satisfaction
User Be the supplier of User survey score
Orientation choice for services
Percentage of projects delivered on time
Total business impact
Focus resources on Service budget as a percentage of revenue
Business attaining business
Value strategies through Cost impact for each release
effective delivery Percentage of budget allocated to new
development
Budget versus actual
Operational Deliver timely andat Staff utilization
Excellence effective services
or under budget Staff turnover
Historical availability
Develop internal
Future capabilities toto
learn Number of documented best practices
Orientation and innovate
exploit future Existence of Process Architecture
opportunities
46/104
47. Positioning
Stakeholder Perspective
Service Attributes Relationships Image
Recognition Stakeholder
Application Quality Time to Delivery System Capabilities
of Value Relations
Internal Processes Perspective
Operations Stakeholder Innovation Regulatory
Management Management Processes Processes
Learnings & Growth Perspective
Human Capital
Information Capital
Organizational Capital
Culture Leadership Alignment Teamwork
Budget Perspective
Project Budget Resource
Performance Management Management
Connecting Critical Success Factors with Key Performance Indicators provides
traceability from execution at the project level to fulfillment of strategic
objectives.
47/104
49. Positioning
Vision Top Down
Positively Impact Making the effect-and-cause connection between
Financial
Performance
Strategy and Key Performance Indicators is the role of
an Balanced Scorecard automation system
Strategic Objective Performance Goal Critical Success Key Performance
Factor (CSF) Indicator (KPI)
Be The Preferred
Supplier Of Business Provide on-time, on- Budget Variance BPI ≥ 0.95
Applications budget, on-
Schedule Variance CPI ≥ 0.97
Traceable to specification for our
Increased Customer enterprise applications Function Points
Revenue % Requirements
Delivered ≥ 90%
Variance
Target
Cost of Delivery Declining Cost per
Provide scalable Impact Customer
platform for
SLA Compliance ≥
acquisition and Performance Impact
0.98
growth of our
customer base Global Operational 24/7/365 Non-Stop
Baseline Operations
Why What How Measures
Flow Down from Strategy to KPIs
49/104
50. Positioning
Vision Bottom Up
Positively Impact Making the cause-and-effect connection between Key
Financial
Performance
Performance Indicators and Strategy is the role of an
Balanced Scorecard automation system
Strategic Objective Performance Goal Critical Success Key Performance
Factor (CSF) Indicator (KPI)
Be The Preferred
Supplier Of Business Provide on-time, on- Budget Variance BPI ≥ 0.95
Applications budget, on-
Schedule Variance CPI ≥ 0.97
Traceable to specification for our
Increased Customer enterprise applications Function Points
Revenue % Requirements
Delivered ≥ 90%
Variance
Target
Cost of Delivery Declining Cost per
Provide scalable Impact Customer
platform for
SLA Compliance ≥
acquisition and Performance Impact
0.98
growth of our
customer base Global Operational 24/7/365 Non-Stop
Baseline Operations
Why What How Measures
Flow Up from KPIs to Strategy
50/104
51. Positioning
Many organizations have operational metrics in place. Identifying the Key
performance measures is the starting place for developing a strategy
based Scorecard
Vision Moving from ad hoc collections of performance metrics to Key Performance Metrics (KPI) to a
Strategy Focused Organization (SFO), is a natural progression for many organizations.
Positively Impact
Financial Making the connections between “ad hoc” metrics to KPI’s then to CSF’s creates a Line of Sight
Performance between tactical performance measurement of strategy.
Strategic Objective Performance Goal Critical Success Factor Key Performance
(CSF) Indicator (KPI)
Be The Preferred
Supplier Of Business Provide on-time, on- Budget Variance BPI ≥ 0.95
Applications budget, on-
Schedule Variance CPI ≥ 0.97
Traceable to specification for our
Increased Customer enterprise applications Function Points
% Requirements
Revenue Delivered ≥ 90%
Variance An ad hoc collection of
Target
existing operational
Cost of Delivery Declining Cost per performance metrics.
Provide scalable Impact Customer Each metric was
platform for created for a good
Performance Impact SLA Compliance ≥ 0.98
acquisition and growth reason, but not
of our customer base Global Operational 24/7/365 Non-Stop necessarily for a the
Baseline Operations measurement of a
strategic objective
Why What How Measures
Flow Up from Ad Hoc to KPIs to CSF to Goals to Strategy
51/104
52. Positioning
Stakeholder Perspective
Service Attributes Relationships Image
The Metrics Map describes the
Bi-directional
Recognition Stakeholder
relationships between the Key
Application Quality Time to Delivery System Capabilities
of Value Relations
Internal Processes Perspective
traceability Performance Indicators, Critical
Regulatory
between Success Factors, and
tactics and
Operations Stakeholder Innovation
Management Management Processes Processes
Performance Goals in support
Learnings & Growth Perspective strategy of a Strategic Objective
Human Capital
Information Capital
Organizational Capital
Culture Leadership Alignment Teamwork
Budget Perspective Vision Bottom Up
Project Budget Resource Making the cause-and-effect connection between Key
Positively Impact
Performance Management Management Financial Performance Performance Indicators and Strategy is the role of an
Balanced Scorecard automation system
Strategic Objective Performance Goal Critical Success Factor Key Performance
(CSF) Indicator (KPI)
Be The Preferred Budget Variance BPI ≥ 0.95
Provide on-time, on-
Supplier Of Business
budget, on-specification
Applications Traceable Schedule Variance CPI ≥ 0.97
for our enterprise
to Increased Customer
applications
Revenue
% Requirements Function Points
Variance Delivered ≥ 90% Target
The Strategy Map described the
cause and effect connection
Declining Cost per
Cost of Delivery Impact
Customer
Provide scalable
between each Strategic
platform for acquisition
Performance Impact SLA Compliance ≥ 0.98
and growth of our
customer base
Objective Global Operational
Baseline
24/7/365 Non-Stop
Operations
Why What How Measures
Flow Up from KPIs to Strategy
52/104
55. Strategy
Obtaining
commitment for a Staking out the
grand purpose Territory
Core Risks to be
Belief
Systems
Values Avoided Boundary
Systems
Business
Strategy
Critical
Interactive Diagnostic
Control Strategic Control
Systems
Uncertainties Performance Systems
Variables
Positioning for Getting the job
tomorrow done
† “Levers of Control: How Managers Internal Controls
Use Innovative Control Systems to
Drive Strategic Renewal ,” R. Simons,
Harvard Business School, 1995
55/104
56. Strategy
† “The Balanced Scorecard: To Adopt or not to adopt?” Kevin Hendricks, Larry Menor
and Christine Wiedman, Ivey Business Journal, Nov/Dec 2004
56/104
57. Strategy
Mission and Vision provide the anchors for developing strategy. Without
a mission and vision the underlying performance metrics don’t have a
foundation on which to stand. “Why are we measuring this activity?” Ask
the Mission and Vision for the answer
‒ ‒
‒
‒ ‒
57/104
58. Strategy
To be effective, the scorecard should have attributes like these
† Implementing Balanced Scorecard, Jessica Keys, and compensation is important, but it is also important to
The connection between scorecard performance Auerbach, 2005
understand that this connection comes ONLY in a mature organization where the scorecard and the resulting
performance has been operational for some time. Without this maturity the expected benefits will not appear
58/104
59. Strategy
It is easy to fall into the trap of being metrics focused rather than strategy
focused. Make sure these “sins” are not present in the BSC. If they are,
take explicit actions to remove them
Common Pit Falls Impact on the Performance Initiative
An IT centric view of IT Lack of senior management involvement in metrics
Selection
performance selection and refinement
Measures that don’t No explicit link between metrics and IT strategy
matter to the business
Lack of common ground Lack of common metrics definitions complicates
Collection
aggregation
An over reliance on tools Lack of focus on data collection processes leads to
inaccurate and outdated data
No drill–down capability Unavailable context for scorecard–level metrics
Reporting
hinders interpretation
Too many metrics Lack of aggregation and screening of low–level
metrics results in cumbersome reports
No individual impact Individual lack incentives to impact scorecard
Use
Implementing Balanced Scorecard, Jessica Keys, Auerbach, 2005
performance
59/104
60. Strategy
It is VALUE we’re after with the IT Balanced Scorecard
“The Market–Based Adaptive Enterprise: Listening, Learning and Leading Through Systems Thinking, Vincent
P. Barabba, in Proceedings Russell L. Ackoff and The Advent of Systems Thinking, March 1999
60/104
61. Strategy
In order to deliver value we must first be ready to deliver value
61/104
62. Strategy
¾’s of the BSC value comes from intangible assets.
Only the financial quadrant can be traced to tangible assets
62/104
63. Strategy
An example of intangible asset manage built around a scorecard
Strategy converts intangible assets into tangible outcomes
63/104
66. Planning
Planning is a continuous improvement process
Information Outlook Online, March 2005
66/104
67. Planning
Role Responsibilities
Assumes ownership for the Balanced Scorecard project
Provides background information to the team on the strategy and methodology
Executive Maintain communication with senior management
Sponsor Commit resources to the team
Provide support and enthusiasm for the Balanced Scorecard throughout the
organization
Coordinates meetings; plans, tracks and reports team results to all audiences
Balanced Provides thought leadership on the Balanced Scorecard methodology
Scorecard Ensures that all relevant background material is available to the team
Champion Provides feedback to the executive sponsor and senior management
Facilitates the development of an effective team through coaching and support
Provide expert knowledge of business unit or functional operations
Inform and influence their respective senior executives
Team Members
Act as Balanced Scorecard ambassadors within their business units
Act in the best interest
Increase awareness of organizational change issues
Organizational
Investigates change-related issues affecting the Balanced Scorecard project
Change Expert
Works with the team to produce solutions mitigating change-related risks
Balanced Scorecard Diagnostics: Maintaining Maximum Performance, Paul R.
Niven, John Wiley & Sons
67/104
68. Planning
1 1 1 1 1 1 1 1 1 1 2
Planning Phase 1 2 3 4 5 6 7 8 9
0 1 2 3 4 5 6 7 8 9 0
1 Develop objectives for the BSC
2 Determine the appropriate business unit
3 Gain executive sponsorship
4 Build the BSC team
5 Formulate the project plan
6 Develop the communication plan
Development Phase
1 Gather and distribute background material
2 Develop or confirm, mission, values, vision, & strategy
3 Conduct executive interviews
4 Develop objectives and measures
4a Executive workshop
4b Gather employee feedback
5 Develop cause and effect linkages
5a Executive workshop
6 Establish targets for measures
6a Executive workshop
7 Develop ongoing Balance Scorecard plan
Balanced Scorecard Diagnostics: Maintaining Maximum Performance, Paul R.
Niven, John Wiley & Sons
68/104
70. Beneficial Outcomes
The benefits appear “soft” at first, they are “booked” as well
Allan R. Bailey, Chee W. Chow, and Kamal M. Haddad,
"Continuous Improvement in Business Education: Insights from the
For-Profit Sector and Business School Deans," Journal of
Education for Business, January-February 1999, pp. 165-181
70/104
75. Measurement
Information Needs Techncial & User Feedback
Management
Processes
Core Measure Processes
Establish
Plan Perform Evaluate
Commitment
Analysis
Results
Improvement Actions
75/104
76. Measurement
People Procedures Data Software Hardware
Owner of the Procedures Performance Software for Personal
PMS and rules for relevant data, the extraction, computers
People the definition of the “as is” transformation Servers
accountable for the values and loading of
performance the data Communication
the units of “To be” values infrastructure
measure indicators of the Database
Rules for data performance management Storage
People who set
up and management indicators software. Data
maintain the Rules for data Performance warehousing
PMS communication results software
Data suppliers Rules for the (calculated Data analysis
use of the data) software
Internal and
external users performance Meta data Presentation
of the PMS results description of and
the communication
Internal and performance software
external indicators
stakeholders
76/104
77. Measurement
Guide to a Balanced Scorecard
Performance Management Methodology,
National Partnership for Reinventing
Government, U. S. Department of
Commerce, 1999
77/104
79. Measurement
It’s easy to create “ugly” measures, so test the outcomes of each measure before use
“What to do with your ugly measures!,” Stacey Barr, www.staceybarr.com
79/104
80. Measurement
Too many CXOs judge implementations by measuring the technical
capacity of a project, instead of considering how it has improved their
companies' business
“The Metrics Trap,” CIO Magazine, Feb 15, 2004
80/104
81. Measurement
Each metric needs to be tested against these attributes
1.
2.
3.
4.
5.
“Two Mistakes Most Professional Services Organizations Make,” Thomas Lah,
Technology Professional Services Association (TPSA)
81/104
83. Measurement
Metrics are useful, indicators are better suited for strategy
Deriving Enterprise-Based Measures Using the Balanced Scorecard and Goal-Driven measurement
Techniques, Wolfhart Goethert and Matt Fisher, Software Engineering and Measurement Analysis Initiative,
CMU/SEI-2003-TN-024, October 2003
83/104
87. Stakeholder Perspective
Service Attributes Relationships Image
Recognition Stakeholder
Application Quality Time to Delivery System Capabilities
of Value Relations
Internal Processes Perspective
Operations Stakeholder Innovation Regulatory
Management Management Processes Processes
Learnings & Growth Perspective
Human Capital
Information Capital
Organizational Capital
Culture Leadership Alignment Teamwork
Budget Perspective
Project Budget Resource
Performance Management Management
87/104
88. “Do the right things, do them well, do them with less, to…”
Business
Results
……reduce overall
……reduce overall …enable profitable
…enable profitable …enable firm to accelerate
…enable firm to accelerate
operating costs -- R2
operating costs R2 operations -- R1
operations R1 market deployment -- R3
market deployment R3
Competency Contribution
Expectations
Competency Credibility Contribution
Project
“Keep my
“Keep my “Manage to
“Manage to “Understand my “Implement timely and cost-
“Understand my “Implement timely and cost-
systems running”
systems running” corporate goals”
corporate goals” operation” -- E3 effective solutions” -- E4
operation” E3 effective solutions” E4
-- E1
E1 -- E2
E2
Operational Excellence
Operational Excellence Project // IT Alignment
Project IT Alignment Solutions Leadership
Solutions Leadership
Reduce the cost of
Reduce the cost of Provide appropriate technology to
Provide appropriate technology to Provide innovative
Provide innovative
providing services -- P1
providing services P1 enable success -- P2
enable success P2 solutions -- P3
solutions P3
Internal Processes
Deliver solutions
Deliver solutions Manage
Manage Leverage
Leverage
Improve
Improve requirements -- P7
on schedule -- P6
on schedule P6 requirements P7 knowledge and
knowledge and
processes for
processes for
best practices -- P10
best practices P10
efficiency
efficiency
and quality --
and quality Centralize IT
Centralize IT Enhance customer
Enhance customer
P4
P4 resources -- P5
resources P5 relationships -- P9
relationships P9
Strategically deploy services -- P8
Strategically deploy services P8
People and
Develop and
Develop and Recognize team
Recognize team Provide employees with
Provide employees with
Tools
Build a high performance
Build a high performance
retain critical
retain critical and individual
and individual the tools and knowledge
the tools and knowledge
culture -- S2
culture S2
skills -- S1
skills S1 performance -- S3
performance S3 they need -- S4
they need S4
88/104
92. Enterprise mission % mission improvement (cost, time, quantity) attributed to
goals IT solutions and services
% planned IT benefits achieved
% IT strategies fully matched to enterprise strategies
Portfolio Analysis % IT portfolio reviewed and disposed
and Management % compliance to approved IT solution deployment
% reusability of core modules
Financial and % total IT costs by major asset categories (hardware,
investment software, personnel, facilities, management)
performance IT budget as % of operational budget and compare to
industry average net present value, internal rate of return,
return of investment, return on assets percentages
(aggregate or by project)
IT resources % databases that can be shared
usage % hardware/software with interoperability capabilities
92/104
93. Customer % cooperative customer and IT applications design
partnership and % joint development service level agreements
involvement % customers attending IT investment meetings
% customers reporting full use of applications
% customers satisfied with IT application design
% customers satisfied with IT maintenance and
Customer support
satisfaction
% of problems resolved within target time
% products launched on time taken to fulfill service
requests
degree to which IT solution support process
improvement plans
degree to which IT aids process analysis
Business
process support degree to which IT solutions can adapt to new
requirements
incremental cost to transfer application to new
hardware platform
93/104
94. % procurement exception to architecture
standards
Architecture
N variations from standards detected by
standards review and audit per year
compliance
% increase in systems using standard
architecture
% projects on time, on budget
% projects using standard methodology for
Project systems analysis and design
performance
N backlog on enhancement and
maintenance requests
% system availability
Infrastructure % applications availability
availability
on-line system response time
94/104
95. Workforce N staff trained by skill area
competency % staff training uses new technologies and
and techniques
development % staff professionally certified
% IT budget devoted to training and staff
development
Employee % employees satisfied with the existing
satisfaction technical and operating environment to
deliver quality products or services
% employees satisfied with training
% employee turnover by function
95/104