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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")
Performance Indicators are Selected
The operations analysis group does not manage IT projects; that’s the IT organization’s job. Nonetheless, they need to know what is going on. To do this they choose a few key performance indicators; in effect, the gauges that tell them if things are happening the way the IT organization said it would.
They choose two indicators for the Whizbang project; two significant, tangible and measurable attributes:
- Project Budget Spending (from the Budget Plan)
- Project Milestones (from the Project Plan)
It is January, the Whizbang project has just started; January actual data won't be collected until after the month closes. Following is an excerpt from a performance measurement system report on key indicators.
ORGANIZATION
PERFORMANCE MEASUREMENT SYSTEM |
||||
| Key Indicators | Whizbang Project | No. 1234 | ||
| A. Budget Performance | Project Budget |
Budget Plan |
Budget Actual |
Variance |
| Plan vs. Actual | $500,000 |
$25,000 |
$0 |
$0 |
| B. Operational Performance | Project |
Milestone Plan |
Milestones |
Variance |
| No. of Milestones Planned vs. No. Achieved |
5 |
0 |
0 |
-0- |
Go to the next page for the Monitoring step.
IT Investment Management Approach, Lesson 15 of 21
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