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There are two sides of IT performance management: technical and business. Since this web site is concerned with ITís business management issues, we will discuss IT "performance management" from that perspective.
Purpose of IT Business Performance Management
The intent of IT business performance management is to assure that IT projects and activities deliver the results promised, on-time, and within budget. This requires that approved and funded IT projects / activities are effectively controlled by senior organization management as well as IT management.
Effective managers know that it is too late to manage IT performance once a project grossly exceeds cost estimates, is seriously delayed, or fails to deliver promised results. Thatís disaster management, not performance management.
The word "manage" is a verb. To be effective it must be dynamic and continuous, proactive and not reactive.
What does that involve?
There are five prerequisites for effective IT business performance management:
It involves the continuous assessment of IT projects and activities to answer two deceptively simple-sounding questions:
How can an organization hope to answer those questions?
Recent surveys report that the "average" IT budget for large organizations is about $250,000,000 (US). How can senior management and the CIO hope to manage the performance of thousands of technically complex projects and activities?
The answer is that they implement performance management processes and systems that are designed to routinely:
What is an example of performance management?
To illustrate the concept simply, weíll pick an activity that we are all familiar with - driving a car to a particular destination. Here are some of the elements:
Armed with the knowledge of where you want to be, when you want to get there, how you will get there, and the key checkpoints along the way, you now have a plan. But simply having a plan doesnít get you there on time.
Together, these elements provide you with sufficient data to monitor, analyze, and control your journey:
Making sure that you arrive where you want to be, when and how you want to get there, is the essence of performance management. Although decidedly more complex, effective IT performance management is a necessary and attainable goal.
Refer to our tutorial, "Introduction To IT Performance Management And Measurement", for more information.