Deb Krueger- Thavron Solutions

According to a 2017 survey conducted by Forrester on behalf of Nexthink, “Only 36% of business users think IT is aligned with the needs of the business, delivers projects on time, reduced frequency of issues and offers updates to improve productivity.”

On top of that, just 34% of end users believe IT views them and their satisfaction as a priority.[1] Based on this study, it is key that IT leadership know what the company values and begin to measure and meet those value expectations.

Some examples of organizational values are:

  1. delivering projects on budget and on schedule,
  2. delivering quality products
  3. hire and keep talented employees
  4. family-friendly city
  5. delivering innovative, new products
  6. first to market

amongst many other possibilities. Measuring value can seem difficult and often seems more like an art than a science; however, monitoring the correct key performance indicators (KPI) is the key to process improvement, fine-tuning business strategy and improving IT’s reputation.

Measuring value goes beyond merely reporting common KPI’s and variances.

Establishing the KPI’s to help assure organizational values are kept in focus is key. It is very important that any numbers reported can be reasonably reconciled to Finance, which is why all ITFM dollars begin with the general ledger; however, the general ledger is limited in its utility regarding what is valued within an organization. For instance, if a city values itself as family friendly, but has no recreational areas and the high school graduates are struggling to read, is the city living up to its values even though the financial statements show as strong?

Likewise, if an IT department prides itself on its strong customer service and quick turnaround of providing strong, productive work tools (computers, servers, etc); but, department managers and the CFO say that IT is too expensive, lacks productive tools for getting the job done and fails to fix what is broken, somewhere the measurement of value is missing the right KPI. Perhaps the Service Level Agreement (SLA) states 99.9995% uptime, but this is defining a service requirement, not a company value.

In summary, the ITFM department must move beyond merely reporting variances and tracking service requirements and move into understanding where the opportunities exist for growth, where budget variances show underperformance and how the department can move the organization into optimizing business performance.

[1] Pendergrast-Savage, Linda, 2017 May. “Independent Study Finds Growing Divide Between IT and End Users On Perceptions of IT Performance”, www.Nexthink.com

We are a Services Management Consulting company assisting both outsourced service providers and internal corporate service providers drive value