Tracking Methods
Establish methods to track total cost of ownership, and integrate them into the financial accounting systems of the organization.
Improvement Planning
Practices-Outcomes-Metrics (POM)
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.