It is essential that organizations receive value for every dollar that they invest in IT. In order to achieve this goal, an emphasis on improving the performance of IT (also known as IT Performance Management) is required. For IT to truly be successful in a business, management must put an internal control system in place.
A decade ago the workplace looked much different than it does now. For instance, BYOD and mobility were not the norm and the option to telecommute was not widely accepted as it is now. Now, we are seeing more flexibility in the workplace and the use of various digital devices is rapidly spreading across the enterprise. It can seem overwhelming to many CIO’s who are busy managing daily business requirements, assigning projects, and dealing with continuous demands to monitor the performance of IT, but there is a way to take control and start measuring the metrics that really matter.
As CIO, you can measure the performance of your organization by creating better IT metrics. The best metrics for IT performance are those that show that the company is moving towards defined business goals and is not stuck in a standstill. You should plan to conduct a cost-benefit analysis on each project to understand the profit to your business. Consider including the following metrics in your analysis:
Aligning the Business Strategy and IT. Business objectives and IT strategies should be developed at the same time and they should be closely aligned. When IT and business goals are measured and communicated together it is much easier to understand IT goals and successes as they are related to the overall business.
Looking at Overall Return on IT Investment. It is recommended that you organize all projects by their net present value in descending order. These metrics will indicate whether your IT investments need to be rebalanced.
IT Service Level Satisfaction. Many companies try to determine customer satisfaction rate by running a survey to determine issues that customers are experiencing. These surveys often have low response rates and collect unreliable data. More consistent metrics can be uncovered when you tie IT performance metrics to your service-level agreements (SLAs). These metrics can report on services including, e-mail, customer portals, and customer relationship management (CRM) systems.
Determining IT Spending Ratio. Are you an IT organization who feels locked into a cycle of increased spending each year? You are not alone; many other businesses are in the same boat. With the correct metrics you can figure out whether too much IT spending is directed at maintaining the status quo rather than new IT initiatives that help achieve measurable business results.
IT Health and Stability. Determining the overall health and performance of your IT systems can be an indicator of the company’s perception of IT value and credibility. Metrics should include outage rates, availability of applications and services, and response times. Security issues directly impact your IT health and must also be taken into account. Other useful metrics are the efficiency of IT projects both in terms of time and costs.