IT Performance Management Research
The survey findings reveal a significant gap between intent and action:
• 41 percent do not have a centrally overseen IT budget.
• 47 percent do not track projects centrally.
• 57 percent do not have criteria to define project success.
• 68 percent do not track project benefits.
• 81 percent never consider a project's option value.
• 89 percent do not use earned value to track project success.
• 46 percent of respondents do not have applications and infrastructure well documented.
The key question, of course, is why? What has been holding back adoption of techniques and practices a vast majority of IT executives say they believe in so strongly? The answer, in short, is that adopting these practices means changing people's skills, attitudes and behaviors.
The research identified and prioritized specific barriers that have hampered many implementation efforts. In summary, the key to making IT performance management work in practice is to tear down these barriers by following a phased adoption path. An example of such a path is described in more detail in the Sloan Management Review paper Best Practices in IT Portfolio Management (link to library part of the web site) paper. “Phased” should not be read as “slower.” On the contrary, it enables organizations to drastically speed up adoption of new capabilities – by focusing on the right sequence of steps and addressing anticipated hurdles before they arise.
How can executives measure, control and increase the value IT brings to the business?
How can they take the initiative in aligning IT investments with business strategy?
What concrete actions will successfully address increasing budget pressure, skepticism and higher expectations regarding IT performance and accountability?