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Subject: IT Decision-Making
Tutorial: The IT Investment Management Approach ("Approach")
How the Approach Works - Control Phase
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Subject: IT Decision-Making
Tutorial: The IT Investment Management Approach ("Approach")
How is IT project / activity performance managed?
Remember that the IT Investment Management Approach establishes an "analytic framework". The framework channels and organizes information from many different sources during Selection; the framework serves the same purpose during the Control phase.
The Control phase uses key information (e.g., project milestones and budget spending schedules) to serve as indicators of performance. Think of a performance indicator as a gauge, a standard or scale of measurement, e.g., a car’s speedometer or gas gauge. Each indicator tells us an important piece of information; multiple indicators can tell management what they need to know.
We’ll use a simple illustration to show some of the key information, a few basic performance indicators (gauges), and how performance management works.
Illustration - Key Information
The Whizbang Software Development Project was approved because it promises to enable field personnel to access the organization’s mainframe client database while they are meeting with the clients. This will enable field personnel to give immediate answers to client’s questions. This is one of several hundred approved and funded projects.
- Project Outcome: Improved client satisfaction; a key business objective.
- Project Deliverable: Fully tested, documented, and functional software program.
- Project Budget: $500,000.
- Project Duration: Nine months; beginning 1/1 and ending 9/30.
- Project Priority: No. 1 (top management priority).
Senior management has tasked the organization’s central operations analysis group to monitor and analyze the performance of all projects. They are required to submit regular reports to senior management.
Go to the next page for the illustration of performance indicators.
IT Investment Management Approach, Lesson 14 of 21
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