How to Connect Data to Meaningful and Measurable Results
Highlights on building an IT Metrics Correlation Model to gain the full value of your data.
A growing number of CIOs appear to recognize the importance of IT metrics, seeing them as a great way to help illustrate IT's value to the broader business. I cited comments from John Hancock Financial Services CIO Allan Hackney and Zynga co-founder Andrew Trader in this post, both of whom are big believers in the power of metrics to help drive business improvement.
In an earlier post, I also shared some great advice on implementing an IT metrics program from Mark Tauschek, director of IT Research for Info-Tech Research Group. Tauschek also shared some guidance on top-level metrics and possible interpretations. For instance, noting that operational spending comprises more than 80 percent of typical IT budgets, he said operational budget as a percentage of revenue is one of the most critical metrics to benchmark against peers.
That's certainly one of the more commonly tracked IT metrics. I also really like the financial metrics suggested by Arun Manansingh, CIO for The Judlau Companies, in a post on his A CIO's Voice blog. He starts with that operational budget metric and goes on to mention several others I think offer far more insight into IT performance:
Manansingh offers some other good suggestions for metrics related to project performance, operations management and information security. I especially like one for percent of projects initiated without an approved business case, as I think it could help IT avoid being made a scapegoat if projects exceed time or budget constraints, or worse, fail completely.