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Representative POMs are described for Tracking Methods at each level of maturity.

1Initial

• Practice

  Use basic TCO tools occasionally.

  Outcome

  Some familiarity with basic TCO tools is emerging.

2Basic

• Practice

  Establish the basic procedures involved in a TCO assessment.

  Outcome

  Adoption of TCO methods is facilitated.

  Metric

  % of TCO tools following a structured process.

• Practice

  Establish and make available a common TCO template and guidance.

  Outcome

  There is acceptance throughout the IT function that a common TCO methodology needs to be adopted for all projects.

  Metric

  % of TCO assessments using the standard format.

• Practice

  Request Finance to review the IT TCO assessment development and implementation.

  Outcomes

  • Finance are occasionally providing input to TCO assessments where opportunities arise.
  • IT is learning from the Finance partnership.

  Metric

  % of TCO assessments with direct involvement of Finance.

3Intermediate

• Practice

  Commence automation of the TCO process.

  Outcome

  TCO process models are increasingly automated and becoming less erroneous.

  Metric

  % of TCO automation vs manual.

• Practice

  Standardize TCO processes throughout the project life cycle and across the IT function and with some other business units; clearly defining roles and responsibilities.

  Outcome

  TCO assessments can be compared across whole IT function and with some other business units.

  Metric

  % of TCO assessments using standard format.

• Practice

  Establish a formal review and agreement between IT and Finance on a full set of short and medium term objectives for TCO.

  Outcome

  The development and implementation of TCO assessments are formally reviewed and agreed with Finance.

  Metric

  % of TCO assessments formally reviewed by Finance.

4Advanced

• Practice

  Mandate that the TCO process is fully automated.

  Outcome

  TCO assessments are produced efficiently and consistently across the organization.

  Metrics

  • % of TCO automation vs manual.
  • % of time saved in conducting an automated vs manual TCO.

• Practice

  Ensure that standard TCO is used throughout the project life cycle and adopted across the organization.

  Outcome

  TCO assessments can be compared across the organization.

  Metric

  % of TCO assessments across the organization using the standard format.

• Practice

  Agree some long term objectives for TCO with Finance.

  Outcome

  There is continual involvement of Finance in TCO advancements.

  Metric

  % of long term TCO objectives with Finance involvement.

5Optimized

• Practice

  Ensure TCO tools used are the best available in the industry.

  Outcome

  There is confidence across the entire business ecosystem that TCO assessments are based on the best available methods.

  Metric

  % of TCO models used considered to be industry best practice.

• Practice

  Regularly optimize and refresh TCO methodology/framework — reassess selection of specific frameworks.

  Outcome

  TCO standard meets the current and future needs of the organization.

  Metric

  % of project managers, sponsors and stakeholders satisfied with the TCO methodology.

• Practice

  Review TCO objectives and set as part of board level reviews of the business ecosystem value chain.

  Outcome

  TCO strategy is visible and consistently aligned to financial objectives.

  Metric

  # of TCO objectives that are supporting the extended value chain financial strategy.