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

2Basic

• Practice

  Establish a basic manual approach for tracking TCO in parts of the IT function.

  Outcomes

  • There is acceptance throughout the IT function that a common TCO methodology needs to be adopted for all projects.
  • The insights gained can be used to support some key decisions.

  Metric

  % of TCO assessments using a standard format.

• Practice

  Establish basic linkages between the IT TCO methods and the wider organizational accounting systems e.g. request Finance to review the IT TCO assessment development and implementation methods.

  Outcomes

  • The IT function can learn from its partnership with Finance.
  • Finance occasionally provides input to TCO assessments where opportunities arise.

  Metric

  % of TCO assessments with direct involvement of Finance.

3Intermediate

• Practice

  Establish a partly automated, standard method for tracking TCO across the IT function which is designed to support investment, retirement, and strategic planning decisions.

  Outcomes

  • TCO methods are increasingly automated and become less erroneous.
  • TCO assessments can be compared across the IT function and with some other business units.
  • Most investment, retirement, and strategic planning decisions can be effectively supported.

  Metrics

  • % of TCO assessments that are automated.
  • % of TCO assessments using a standard format.

• Practice

  Establish formal linkages between IT TCO methods and the wider organizational accounting systems e.g. 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 with direct involvement of Finance.

4Advanced

• Practice

  Mandate that TCO methods are adequately automated, and effectively support investment, retirement, and strategic planning decisions.

  Outcomes

  • TCO assessments are executed efficiently and can be consistently compared across the organization.
  • All investment, retirement, and strategic planning decisions can be effectively supported.

  Metrics

  • % of TCO assessments that are automated.
  • % of TCO assessments using a standard format.

• Practice

  Seamlessly integrate TCO methods with the wider organizational accounting systems and agree some long-term objectives for TCO with Finance.

  Outcome

  There is continual involvement and support of Finance in TCO assessments.

  Metrics

  • % of TCO assessments with direct involvement of Finance.
  • % of long-term TCO objectives with direct involvement of Finance.

5Optimized

• Practice

  Continually review TCO methods for improvement opportunities.

  Outcomes

  • There is confidence across all stakeholders that TCO assessments are based on industry best practice methods.
  • The TCO methods meet the current and future needs of the organization.

  Metrics

  • % of TCO methods that are considered to be industry best practice.
  • Stakeholder satisfaction with TCO methods.

• Practice

  Continually review TCO methods' linkages and TCO objectives, and consider these objectives as part of board level reviews of the business ecosystem value chain.

  Outcome

  The TCO strategy is visible and consistently aligned to financial objectives.

  Metric

  # of TCO objectives that support the business ecosystem value chain financial strategies.