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Subject: IT Performance Management

Tutorial: Introduction To IT Performance Management And Measurement


What is the performance management issue for IT organizations?

Many senior managers believe that IT organizations are:

  • wasteful and inefficient (as evidenced by chronic project cost overruns, late deliverables, etc.), and
  • not aligned with strategic goals and business objectives.

Senior management is often handicapped in its decision-making for IT because it has difficulty determining:

  • if the most important strategic and business needs are being met
  • if they have been presented with the best IT options for decision-making
  • the appropriate funding levels for IT projects / activities (how much to budget)
  • whether the IT organization is likely to deliver the promised benefits and results on time and within budget

Typically, these are characteristics of organizations that have paid insufficient attention to measuring and managing IT performance and results, and have failed to establish an overall analytic framework for IT evaluation and decision-making (See the tutorial "The IT Investment Management Approach" for a description of an extended analytic framework.)

Instituting adequate performance management is an important step that CIOs and IT organizations can take to restore their credibility. Meaningful performance measurement and management reporting will tell IT and senior management what is working and what is not; especially important is the ability to recognize potential problems in time to take corrective action.

Introduction To IT Performance Management And Measurement, Lesson 2 of 13

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