| The IT/IS department's role is to provide technical | | | | alignment and performance: |
| support for the entire organization. While we know | | | | - Which of your business unit's processes support the |
| that this alone is a complex task, today's business | | | | organization's mission the most? |
| model requires IT/IS to not only support users, but | | | | - Do the metrics we report on drive those |
| to align technology to meet the business needs of | | | | processes? |
| the organization. Understanding business unit | | | | - Are you satisfied with the current performance |
| objectives and translating them quickly and accurately | | | | throughout your organization? |
| into IT priorities is essential today. Just as critical is | | | | - Do our metrics address the company's critical |
| the ability to effectively communicate IT planning and | | | | needs? |
| performance data in a way that is useful to business | | | | - Do our reports provide the required information to |
| unit management. The growing complexity of IT/IS, | | | | make business decisions? |
| the frequent technology changes which take place, | | | | - Do they identify areas of misalignment? |
| and its continuous impact on organizations, have | | | | - Do IT initiatives appear to be prioritized |
| made managing IT performance a critical function for | | | | appropriately? |
| most organizations. Executives are constantly looking | | | | Inputs into the IT Performance Management Process |
| for ways to use IT/IS more effectively, and identify | | | | IT Performance success and organizational success in |
| uses which generate a higher value add. At the same | | | | general begin with defining organizational goals and |
| time they must guarantee the effective integration | | | | objectives. It is critical that IT functions are centered |
| and return on investment in order to achieve | | | | around helping the organization reach it's goals and |
| organizational goals and gain a competitive edge. | | | | objectives. If obtaining the best customer satisfaction |
| So how does a performance management team | | | | results is important to your organization, then |
| measure how well an organization's IT/IS is aligned to | | | | measuring how many tickets your help desk |
| organizational objectives? To answer that, first let's | | | | generates is not the most important metric to pay |
| take a look at the different vehicles for aligning and | | | | attention to. Customer satisfaction rating, customer |
| measuring IT performance. The IT Performance | | | | loyalty and time to resolve issues would be more |
| Management System utilizes the following vehicles to | | | | appropriate. When you are determining which metrics |
| generate reports that help an organization understand | | | | you'd like to include in your service level agreements, |
| how well they are measuring up to business | | | | make sure you identify measurements that drive |
| objectives: | | | | your organizational goals. |
| - Service Level Agreements | | | | Budget, schedule and project risks are also important |
| - Performance-Based Contracts | | | | when managing your organization's IT performance. |
| - Products and services catalogs | | | | The key to successfully managing any project is to |
| Performance Based Contracting (PBC) and | | | | make sure you accomplish your tasks under budget |
| Performance Based Acquisition (PBA) are techniques | | | | and within schedule. By integrating these factors into |
| for structuring all aspedcts of an acquisition around | | | | your service level agreements and other |
| the purpose and outcome desired as opposed to the | | | | performance based contracts greatly increases the |
| process by which the work is to be performed. | | | | success of your performance initiative. |
| Performance-based contracts are predefined by an | | | | Outputs to the IT Performance Management Process |
| agreement between the user community, the | | | | Once you have setup the service catalog and |
| organization and external service providers. | | | | performance-based contracts you can focus on the |
| A Service Level Agreements (SLAs) is a seamless | | | | outputs that your performance team will produce. |
| contract that establishes specific services that the | | | | These outputs include: |
| organization will deliver to the end-user community | | | | - data |
| with regards to various timeliness, availability, | | | | - internal reports (how well are day-to-day operations |
| performance, and problem resolution criteria. The | | | | being executed?) |
| metrics contained in a performance based contract | | | | - customer-based reports (how satisfied are your |
| need to be specific, measurable, trackable, and | | | | customers?) |
| meaningful. Performance-based contracts state what | | | | - performance reports (is your performance meeting |
| a vendor will perform and how well they must | | | | the standards of the performance-based contracts?) |
| perform that activity in order to fulfill its | | | | - contractor-based reports (how well is the service |
| commitments. This gives the vendor the freedom to | | | | that your contractors/service providers are |
| approach the task however it deems fit, in order to | | | | providing?) |
| meet the agreed upon requirements. | | | | The IT Strategic Planning Process |
| Product and service catalogs document the products | | | | The planning process involves asking such questions |
| and services that the IT department provides. They | | | | as who participates in the work group, who is |
| underpin the service level management process. The | | | | responsible for the plan, how can user participation be |
| service desk uses the product and services catalog | | | | guaranteed, how can coordination of the different |
| to advertise IT services, and to assist in day to day | | | | departments involved be assured and how can the |
| activities. Documenting these services allow your | | | | quality of the process be reached. The composition |
| organization and customers to negotiate SLAs, | | | | of the group responsible for IT/IS planning is a key |
| establish Operating Level Agreements (OLAs) and | | | | factor in the planning process. Therefore, the team |
| execute underpinning contracts. | | | | that finally approves the strategic plan for IT/IS is |
| These vehicles are all extremely important in ensuring | | | | usually comprised of the top management of the |
| that your IT performance program is aligned to | | | | company, the managers of the different functional |
| organizational goals and objectives and that the | | | | areas and by the IT/ IS managers whom, with their |
| metrics you are reporting drive your organization to | | | | teams, prepare the plan. Companies that fail to |
| achieve them. | | | | commit senior and departmental management to the |
| Which Functions Does Your IT Department Support? | | | | strategic plan have a difficult, if not impossible task |
| What functions does your IT department support? | | | | of aligning IT systems to Business Strategy. |
| Help desk, capacity planning, data integration, security | | | | Why is it important to evaluate strategic planning |
| and custom business application development are a | | | | when it comes to Performance Management? |
| few of the functions most IT departments today | | | | Because measuring the right processes is the |
| support which are critical to the success of a | | | | difference between an organization that is functional |
| business. It is the performance management team's | | | | and one that's highly efficient. Measuring the right |
| responsibility to ensure that they identify and report | | | | processes allows an organization to eliminate |
| on metrics that capture true business effectiveness. | | | | investments that are not producing favorable results. |
| Questions the performance management team | | | | And because it allows them to focus on the areas |
| should ask senior management regarding IT strategic | | | | that most affect the success of the organization. |