Chasing KPIs That Matter

Nigel Fenwick

Is there a fundamental problem in today’s IT? I believe there is, and it’s this: IT decision-makers are too often focused on the wrong things.

In a recent study, Forrester examined the top priorities, topics, and terms from a variety of data sources for both business decision-makers and technology decision-makers. What we found was a very clear — and to my mind, troubling — distinction between these two groups.

Business decision-makers focus on topics like growing revenue, improving customer satisfaction, and hiring, developing, and retaining the best talent. By contrast, IT decision-makers focus on topics like improving project delivery performance, improving budget performance, and cutting IT costs.

The fact that IT decision-makers have so little focus on business outcomes is one of the main reasons IT is seen as disconnected from the rest of the business.

The only way for CEOs and CIOs to fix this is to begin to measure IT professionals more in terms of business-outcomes and less on project delivery and system uptime. In other words, we need to measure IT professionals using the same KPIs we use to measure leaders across the rest of the business. This means we must begin measuring IT’s impact on things like the change in customer satisfaction (that’s the company’s customer satisfaction and not IT’s internal “customers” as some groups like to refer to other employees in the company), or the increase in sales, or the ability to attract and retain top talent.

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Does BT Need A New Report Card?

Nigel Fenwick

It's time to re-think the report card used by CIOs to report on BT performance – tomorrow’s BT CIOs must look beyond the traditional IT Balanced Scorecard (BSC). 

I realize this is sacred ground for many people in IT (and some of my colleagues here at Forrester), so let me explain myself before I receive a barrage of complaints. The philosophy behind Business Technology (BT) recognizes technology as integral to every facet of every organization – as such, IT is very much an integral part of the business; we can no longer talk about “business” and “IT” as if referring to two distinct things. I’m suggesting that in the age of BT, we need a new scorecard that better reflects the impact of BT on the business.

A great deal has been written and published on the Balanced Scorecard, including many great pieces of research  by my colleague Craig Symons, such as his recent report "The IT Balanced Scorecard: Customer/Partner Metrics Revisited." I'm not suggesting we throw this out by any means – CIOs absolutely need to use a balanced scorecard to run an efficient and effective BT operation (see fig 1).

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The Essential Metrics For Infrastructure And Operations

Rachel Dines

One thing that I’ve found in common across infrastructure and operations groups of all shapes and sizes is that they are continually searching for the ideal set of key performance indicators. A set of metrics that perfectly measures their infrastructure, demonstrates the excellence of their operations, but are still simple and cheap to collect. At least once a week I speak with a client searching for the holy grail of metrics, hopeful that I hold that coveted knowledge. They’re inevitably disappointed to find out that I don’t know what the best set of metrics is, and that I truly think that it doesn’t exist! Sorry if I’m bursting your bubble, but there is no essential set of metrics for all infrastructure and operations organizations. What makes sense for one organization to measure may be completely useless for another organization. What may be very simple to collect at one company is nearly impossible at another.

While I don’t believe in the myth of a single set of perfect metrics for all organizations, I do think it is valuable to learn from other organizations what they are measuring in order to compare them to your own metrics (and maybe steal some of theirs), which is why I am gathering a list of metrics from infrastructure and operations groups globally in order to form a database of metrics. Once we have a good number of metrics on this list, I will work to consolidate them down to the most commonly cited metrics and collect a benchmark on them. We’re calling this project “Forrester's Consensus Metrics For Infrastructure & Operations” and I really hope you’ll consider contributing to it because we can’t do this without your input.

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