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Subject: IT Decision-Making

Tutorial: The IT Investment Management Approach ("Approach")

 

How the Approach Works - Control Phase


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
IT Projects as of January

Key Indicators Whizbang Project No. 1234

A. Budget Performance

Project Budget

Budget Plan
To Date

Budget Actual
To Date

Variance

 
Plan vs. Actual

$500,000

$25,000

$0

$0

 
B. Operational Performance

Project
Milestones

Milestone Plan
To Date

Milestones
Achieved
To Date

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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