IT value measurement

In an article from CIO Insight, How to improve IT value measurement, Brian Barnier highlights the importance of "measurement" and "metrics" that are meaningful to the organization. It's not just about reporting the number of tickets closed over a period of time. In industry, the CEO doesn't care about that. In higher education, the faculty don't care about your support ticket "metrics". They want to see the value to the campus.

For example, many enterprises fall into two traps: They tie measurements to IT operational objectives (cost per unit, etc.) and not to what matters to the organization. Or they leap from tactical objectives (ticket-closing times) to business objectives (calling this "agility".)

Instead, Barnier recommends these practices to improve your IT value measurement:

1. Match IT value measurement to business measures.

That means you need to make it tangible. For example, you might map your progress in terms of growth, customer satisfaction, and objectives met.

2. Match IT value measures to your business-IT investment portfolio.

For example, IT organizations may fail to ask how stakeholders benefit from a new system. Ask them. Did your new investment help the campus move forward in teaching and learning, in research, or reduce administrative costs?

3. Learn how to manage hidden costs.

IT managers often undercount lifecycle costs: the Total Cost of Ownership. You need to understand the cost structure of your organization, including all support costs, and relate these costs to the benefits delivered to the campus.

4. Determine how to report value with consistency.

I often look at reporting this way: if you track it, you should report it. If you report it, someone should be able to make a decision from it. Are you reporting simple metrics (numbers) or are you reporting value (information that helps make decisions)?