IVI Framework Viewer

Performance Measurement

A4

Use metrics to track, evaluate, and improve funding-related outcomes – for example, cost of funds, spend by category/initiative/business unit, return on investment (ROI), return on assets (ROA), and so on. Link funding to the benefits derived to determine the impact of funding.

Improvement Planning

Practices-Outcomes-Metrics (POM)

Representative POMs are described for Performance Measurement at each level of maturity.

1Initial
  • Practice
    Rely on the best endeavours of available personnel.
2Basic
  • Practice
    Use basic funding metrics.
    Outcome
    Initial performance measurements are in place.
    Metric
    % of spend by category.
3Intermediate
  • Practice
    Use IT funding metrics and regularly review and act on the results.
    Outcome
    Funding trends and patterns begin to emerge and influence funding decisions.
    Metric
    # of funding metrics results review per annum.
4Advanced
  • Practice
    Use a broad set of funding metrics including risk/return, with periodic results review.
    Outcome
    Costs of funds from different sources are starting to be considered.
    Metric
    Funding risk/return metric in place.
5Optimized
  • Practice
    Ensure that funding performance measurement includes both tangibles and intangibles e.g. RAROC (Risk Adjusted Return on Capital), Shareholder value.
    Outcome
    There is a holistic understanding of the costs of financing and the anticipated benefits to be derived from these funds.
    Metrics
    • RAROC (Risk Adjusted Return on Capital)
    • Shareholder value.
  • Practice
    Regularly review and improve a broad set of IT funding metrics.
    Outcome
    Metrics are regularly reviewed and measures acted upon to drive efficiencies and improvements in funding decisions.
    Metric
    # of metric result reviews per annum.