Value Orientation
Advocate for delivery of the expected business value from IT.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for Value Orientation at each level of maturity.
- 1Initial
- Practice
- Rely on the best endeavours of available personnel.
- 2Basic
- Practice
- Report IT costs against the budget periodically, using simple (non-financial) project metrics for all large projects.
- Outcome
- For large projects, a cost-benefit assessment can be undertaken.
- Metric
- % of projects for which a cost-benefit assessment has been conducted.
- Practice
- Set business value goals for single projects and assign accountabilities for value delivery within IT.
- Outcome
- Some projects are managed using a value-based approach.
- Metric
- % of IT projects that have value goals.
- 3Intermediate
- Practice
- Establish appropriate performance metrics for defined IT processes, and include usage of financial appraisal instruments and techniques (e.g. TCO, ROI, payback period, etc.).
- Outcome
- Use of defined processes and performance metrics allows benefits to be measured for a pre-defined period after deployment/completion of the project/system/programme.
- Metric
- # of performance metrics in use.
- Practice
- Define and assign accountabilities for value delivery within IT and some other business units for all major projects.
- Outcome
- Basic accountability for IT and some other business units is in place.
- Metrics
- % of IT projects that have value goals.
- % of IT staff that have business value targets.
- 4Advanced
- Practice
- Establish a clear set of business value targets and performance metrics for all IT processes based on the IT strategic planning process.
- Outcome
- There is transparency on the IT cost-benefit ratio.
- Metric
- # of performance metrics in use.
- Practices
- Define and assign accountabilities for value delivery organization-wide for all projects and establish achievement of business value targets as one dimension of individual and group-level performance scorecards.
- Ensure appropriate techniques (e.g. real options, programme portfolio management) and metrics are applied.
- Outcome
- Every IT process has a clear set of business value targets based on the IT strategic planning process.
- Metrics
- % of processes that have business value targets.
- % of IT staff that have business value targets.
- 5Optimized
- Practice
- Continually review and improve business value targets and performance metrics.
- Outcome
- Business value targets and performance metrics can be improved in line with business environment changes.
- Metric
- Frequency of review of business value targets and performance metrics.
- Practice
- Define accountabilities for value delivery across the business ecosystem and enforce accountabilities as a major category in all individual and group value performance scorecards.
- Outcome
- IT leaders are continually driven to deliver business value, through the incorporation of business goals in their performance assessments.
- Metric
- % of bonuses that are related to business value.