Developing an IT scorecard

6 must-dos for successfully developing an IT scorecard for your organization

By ITworld tips  1 comment

by Robert A. Ryan -- Development of an IT scorecard is often a "once in a career" event for IT managers. Do not let your IT scorecard project fail!

The objective of performance management is to track organizational performance through specific performance measures, commonly referred to as an IT scorecard. These performance measures provide meaningful information to organizational decision-makers about the progress an organization is making toward a defined organizational goal.

[ See also: Don't call it brainstorming: 10 tips for better innovation ]

Here are 6 must-dos for successfully developing an IT scorecard for your organization:

1. Obtain executive sponsorship for your IT scorecard project. Your CIO and senior staff in your IT organization need to provide visible support for an IT scorecard, and commit organizational resources (i.e., staff, technology, funding) to the development and integration of performance management.

2. Select and empower a cross-functional internal team to develop the initial IT scorecard. Effective development of an IT scorecard requires expertise from different organizational units within your IT organization, in addition to input from your key customers and users. You should also include your Enterprise Architect or your Data Architect in your cross-functional internal team.

3. Consider using an external consultancy or individual expert to guide your project. Development of an IT scorecard is often a "once in a career" event for IT managers and staff. Using external expertise to develop and integrate your IT scorecard can help guide a successful project.

4. Charter the project with a clearly defined timeline to completion and measures of success. A project charter document will define the scope of your IT scorecard development and integration, and the level of organizational resources committed to the project. Throughout your project, your development team can review progress toward, and completion of, key milestones.

5. Develop a list of stakeholders to the project and reach out to these various stakeholder groups on a regular basis to communicate ongoing project activities. Your IT scorecard, when completed, will gain greater acceptance and use in your organization if input from critical stakeholders is obtained (and used) in the development process.

6. Rigorously track the progress of the project and take corrective action if at any time the project is failing to achieve key milestones. Do not let your IT scorecard project fail!

_________________

Today's tip is derived from the book, The Business of IT: How to Improve Service and Lower Costs, by Robert Ryan and Tim Raducha-Grace, published by IBM Press, Sept. 2009, ISBN 0137000618, Copyright 2010 by International Business Machines Corp. For a complete Table of Contents, please visit the publisher site: www.ibmpressbooks.com/title/0137000618

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1 comment

    Anonymous 2 years ago
    This post is close, but not totally on target. It starts off with the ominous hook that a poorly implemented IT Scorecard can derail a career...but the only follow on is that you don't want it to fail. There are more dangers in using metrics than benefits - if your organization is immature. There are real dangers to anyone involved in implementing a scorecard which deserve identification. That aside, it may be due to the constraints (length) in the post, but you still leave much to be pondered. Specifically, in Tip #1, you suggest having a dedicated (embedded) resource. While you may be able to get away with one dedicated resource to manage and orchestrate the collection, analysis, tracking, and reporting of performance measures, unless you have a very small organization offering a limited amount of services, one person won’t be adequate. The one-belly-button-to-push structure works if that person lets the service providers (managers) remain in control of their data. Of course this requires trust, which requires a level of organizational maturity.Tip #2 is right on target. And I’d go so far as to separate them by service. Each service should have its own scorecard, which can be aggregated to type of service (support, utility, etc.), and then by category (development, operations, infrastructure).I like tips 4 and 5, but tip number three is a tease. Where can these IT industry standards be found? I’ve researched for a few years, and still can’t find any. CEITPS (www.ceitps.org) is a new non-profit organization which is taking on the monumental task of creating standards for IT performance measures. You also claim there are "publicly-available benchmarking sources" - again, would love to see these – unless you are referring to benchmarks being sold by consulting organizations when you say “publicly-available.” The source is publicly-available but the actual benchmarks cost. Overall not bad for such a short post, but the grade would have to be a C for value.

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