You must report on the right metrics to defuse the explosive combination of budget pressures and business expectations.
In April 2008, Forrester published the report “The Five Essential Metrics for Managing IT” This has become one of our most popular docs in terms of readership and reader feedback. Principal Analyst Craig Symons lays out 5 IT metrics that are extremely relevant to IT’s business stakeholders: investment alignment to business strategy, business value of IT investments, IT budget balance, service level excellence, and operational excellence.
Why are we bringing your attention to this report now? Because business execs are trimming capital and operational budgets wherever they think it will have the least impact on business, and IT is a prime target. Because of a lack of transparency in many IT shops, the tension between IT budget cuts, and business expectations for technology are fraught with risk for CIOs and other IT execs. The risk is that cuts in IT’s budget are seen by the CIO’s peers as “IT’s problem to solve” – but these same business peers will see cuts in project delivery or IT service levels as yet more proof that the CIO’s organization isn’t capable of supporting their needs. Look at what these business execs were saying in July of 2008 – and this is before the budget pressure was on.

The only way CIOs can turn this tension to their advantage lies in what metrics for IT they use in discussions with their business peers.
The 5 essential IT metrics bring these tensions out in the open, by:
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