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Value Orientation

A1

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.