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Getting on Track with Performance Indicators |
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Source: IT Business Edge | Priority:
Maximizing IT Investments |
Topic: Metrics
Date Published:
11/1/2005
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With Marina Stedman, director of marketing at Touchpaper [www.touchpaper.com], a provider of IT business management systems and services, encompassing ITSM, CSS and systems/network management.
Question: What are the most important factors for companies to consider when establishing key performance indicators?
Stedman: The most important factor when establishing KPIs is that they relate directly to the strategic and operational goals of the business, including such things as organizational effectiveness; efficiency; security; and proactive use of technology to drive growth, revenue, value for money, customer satisfaction, good governance and best practices. KPIs for IT must be measurable, and measure performance of individuals, departments, organizations or systems against particular values or formulas, including things like service availability, customer/user satisfaction scores, percentage of requests met within a service level agreement, and percentage of projects on time and on budget.
Question: What are some of the most common approaches to tracking KPIs? What are some pros and cons of these approaches?
Stedman: The concept of KPIs to measure performance against objectives has been around for many years, but the ability to measure the performance of people and processes with automated systems has not. Manual measurements lack consistency and accuracy and are subject to human interpretation and intervention. When KPIs relate to legislative and regulatory compliance (Sarbox and HIPAA, for example), automated systems are even more important.
Systems should flag daily out-of-compliance indicators and support the proactive resolution of issues before they become business critical, as well as provide historical trend reporting, supporting decisions about expenditures that should be reduced or where further investment should be made in IT and the customer service infrastructure. Data collected from multiple systems should deliver key operational information in an easy-to-use, intuitive manner, including the ability to identify specific issues that affect overall KPI compliance.
Question: How can establishing and tracking KPIs help a company achieve a better return on IT investments?
Stedman: KPIs and the systems that support them can not only help an organization make better long-term investment decisions, but they can support daily operating decisions and the allocation of resources against organizational priorities. For instance, by building a KPI weighting function into operational systems, according to the level of importance or value to the business, information can be presented to individuals and departments in accordance with their roles and responsibilities, ensuring that they take the most appropriate action at the right time to meet the organization’s business objectives.
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Virtual Iron to Expand Its Delivery Methods
TAKEAWAY: Virtual Iron is changing the focus of its strategy. The company plans to more readily get its product to its customers by broadening its delivery methods. Virtual Iron is currently working on new services and partnerships to be provided by itself or its channel partners.
Source: Network World |
Priority: Optimizing Infrastructure |
Topic: Strategic Planning
Date Published: 6/7/2008 |
Date Reviewed: 7/3/2008
Zoho Positioning Itself Wisely in SMB CRM Market
TAKEAWAY: Dennis Howlett says Zoho has done well in positioning itself against Salesforce and other CRM competitors. The trick now is delivering on its efforts and become a solid second-place competitor.
Source: ZDNet |
Priority: Aligning IT & Business Goals |
Topic: Strategic Planning
Date Published: 4/17/2008 |
Date Reviewed: 4/17/2008
ROI: It's Different for IT
TAKEAWAY: The traditional formula for calculating ROI — dividing net profits by total assets — is not applicable to IT investments, according to this author, a PricewaterhouseCoopers analyst. Instead, IT compares the magnitude and timing of expected gains to the investment costs. Methodologies for determining ROI on IT spending have also evolved to increasingly include intangible as well as tangible benefits, he says. Though admittedly difficult to quantify, intangibles such as improved productivity and greater customer satisfaction may be even more important than traditional financial measures. He walks readers through creating an ROI analysis. Among his tips: Calculate ROI twice, once for the expected ROI and again for a worst-case scenario. Focus on what the technology enables rather than the technology itself.
Source: Network Magazine India |
Priority: Maximizing IT Investments |
Topic: Financial Metrics
Date Published: 12/1/2006 |
Date Reviewed: 12/22/2006
> Read
" The ROI on IT Investments" at Network Magazine India
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