IT Performance Management Imperative #2: Measure business value. Really.

by

The most commonly asked question I get from CIOs undertaking a performance management initiative is: “How can I measure business value when our company does not measure benefits achieved?” The truth is that very few companies actually measure benefits realized from projects, so over the years, I have helped many CIOs develop proxies for business value achieved. For example, IT can track the expected benefits of all projects completed by using benefits from the business cases. Or IT can measure the number of projects delivered that directly support strategic objectives of the business strategy.

The fact is, while a proxy is better than nothing, measuring actual business value has so many benefits that any CIO owes it to the organization to make the case to senior leadership. Once companies are actually measuring benefits achieved from projects, behaviors will change. Even before the benefits are measured, executives will be much more careful in their wild claims if they know they are going to be held responsible for achieving them. That means better decisions will be made about what projects to approve and how to prioritize them. Leaders who are held accountable will be more engaged in projects. That means the likelihood of project success and benefits realization increases. Employees working on the project will have a better understanding of project objectives. That means they are likely to be more engaged and make better decisions.

So, what if you still can’t get your business on board to measure project benefits? I still believe a proxy is better than nothing. The proxy will allow IT leadership to have the right conversations with business leadership, and, eventually, get to more accurate indicators. As I mentioned in my previous post, business value is a critical component of any performance measurement system.

READ MORE

Calling Everyone Back to the DEI Table

Calling Everyone Back to the DEI Table

It is no secret that 2020 put a glaring spotlight on the importance of diversity, equity, and inclusion in our everyday lives. As our communities reckoned with difficult questions and conversations around racial equity and justice, those topics found their way into...

read more
Did We Just Fall in Love With Hybrid Meetings?

Did We Just Fall in Love With Hybrid Meetings?

Last week, we held a two-day training session for our extended leadership team. We’d been planning it for months — the meeting room, the dinner activity, the team building exercises … the works! This was, as I’m sure you’re picking up on, more than just a meeting,...

read more
“The Great Resignation” Has a Really Good Publicist

“The Great Resignation” Has a Really Good Publicist

Mass resignations are a big deal right now. Yes. Is it surprising? Absolutely not. People leaving for greener pastures is not a new concept. How many of you — given a choice between two situations — would choose the one that LEAST benefited you? If a better option...

read more
The Human Quotient: Heuristics and Bias in Analytics

The Human Quotient: Heuristics and Bias in Analytics

As individuals, we all have a unique set of heuristics and biases that show up in our daily lives, whether we notice them or not. This means that for a lot of the decisions we make, whether personal or professional, there is an underlying, subconscious process that...

read more
Why Keeping It Real Is a Winning Strategy

Why Keeping It Real Is a Winning Strategy

If I had to sum up my pandemic year, I might say it was the year I got to spend each day of an entire summer with my daughter. It was also the year that I significantly altered my career path by taking the brilliant advice of my coach: to lead with my values (keep it...

read more
Meaningful Brand Maturity vs. Promotional Box Checking

Meaningful Brand Maturity vs. Promotional Box Checking

Featuring: Errika Flood-Moultrie Diversity. Equity. Inclusion (DEI). Individually, each word packs its own unique punch, but together, this lineup represents something much greater — profound even — and that is true head and heart transformation. As a people-first,...

read more