Implementing the IT Balanced Scorecard: Aligning IT with Corporate Strategy

✍ Scribed by Jessica Keyes

• Publisher: Auerbach Publications
• Year: 2005
• Tongue: English
• Leaves: 523
• Edition: 1
• Category: Library

✦ Synopsis

The goals of an IT balanced scorecard include the alignment of IT plans with business objectives, the establishment of measures of IT effectiveness, the directing of employee efforts toward IT objectives, the improved performance of technology, and the achievement of balanced results across stakeholder groups. CIOs, CTOs, and other technical managers can achieve these goals by considering multiple perspectives, long- and short-term objectives, and how the IT scorecard is linked to other scorecards throughout their organizations. Implementing the IT Balanced Scorecard: Aligning IT with Corporate Strategy lays the groundwork for implementing the scorecard approach, and successfully integrating it with corporate strategy. This volume thoroughly explains the concept of the scorecard framework from both the corporate and IT perspectives. It provides examples, case histories, and current research for critical issues such as performance measurement and management, continuous process improvement, benchmarking, metrics selection, and people management. The book also discusses how to integrate these issues with the four perspectives of the balanced scorecard: customer, business processes, learning, and innovation and financial.

✦ Table of Contents

Table of Contents......Page 8
About the Author......Page 16
Preface......Page 18
Why Balanced Scorecard?......Page 24
What Is Balanced Scorecard?......Page 25
Attributes of Successful Performance Measurement Systems......Page 28
Federal Express......Page 29
FedEx and the Balanced Scorecard......Page 31
Federal Acquisition System......Page 32
Customer Perspective......Page 34
Finance Perspective......Page 36
Learning and Growth Perspective......Page 37
Contractor Purchasing System......Page 38
On to Chapter 2......Page 40
References......Page 47
Understanding Performance Management: Balanced Scorecard at the Corporate Level......Page 50
Step 2: Develop Performance Objectives, Measures, and Goals......Page 52
Mission, Vision, and Strategy......Page 53
Awareness of Strategic Challenge......Page 54
Innovation......Page 55
Ethics......Page 56
Supervisor Role in Quality Improvement......Page 57
Awareness of Quality Issues......Page 58
Workforce Involvement......Page 59
Tasks and Characteristics......Page 60
Customer Orientation......Page 61
Work Unit Input Measures......Page 62
Work Unit Efficiency Measures......Page 63
Work Unit Impact Measures......Page 64
Supplier Activities......Page 65
Performance Measurement......Page 66
Input Measures......Page 67
Efficiency Measures......Page 68
Direct Outcome Measures......Page 69
Efficiency Reviews or Management Analysis......Page 70
Statistical Process Control......Page 71
Definition (workforce)......Page 72
External Customer Activities......Page 73
Organizational Streamlining......Page 74
Good Ideas......Page 75
Quality Training......Page 76
Reward Systems......Page 77
Definition (Teams)......Page 78
Measurement......Page 79
Root Cause Analysis......Page 80
Awareness and Communication......Page 83
Staffing......Page 84
Timeliness......Page 85
References......Page 86
1. Whom Do We Want to Be?......Page 88
Step 1: Make a Commitment at All Levels - Especially at the Top Level......Page 89
Step 5: Break Down Organizational Barriers......Page 90
Developing Benchmarks......Page 91
Phase 1: Plan......Page 92
Phase 3: Analyze......Page 93
Phase 4: Adapt......Page 94
Choosing Metrics......Page 97
Looking Outside the Organization for Key Indicators......Page 101
Step 2: Information Meeting......Page 102
Step 5: Total Picture......Page 103
Process Mapping......Page 106
Step 1: Understand the Basic Process Mapping Tool......Page 107
Step 5: Apply the Basic Process Mapping Tool to Each Process......Page 108
Step 6: Compile the Results......Page 111
The Balanced Scorecard Plan......Page 112
References......Page 113
Aligning IT to Organizational Strategy......Page 114
The IT Balanced Scorecard......Page 115
Altering the Balanced Scorecard for IT......Page 117
Great-West Life Case Study......Page 121
Drilling Down to the Specific System......Page 126
Keeping Track of What Is Going On......Page 132
Surveillance......Page 134
On to Chapter 5......Page 135
References......Page 136
Cost-Benefit Analysis......Page 138
Estimating ROI for an IT Project......Page 141
Continuing Benefits Worksheet......Page 145
ROI Spreadsheet Calculation......Page 146
Earned-Value Management......Page 147
Rapid Economic Justification......Page 148
Portfolio Management......Page 150
Preparing the Field......Page 151
A Monetary Value of Information......Page 152
The Prediction Market......Page 153
References......Page 155
Customer Intimacy and Operational Excellence......Page 158
The Customer Satisfaction Survey......Page 161
Using Force Field Analysis to Listen to Customers......Page 163
The Customer Economy......Page 165
Innovation......Page 167
Managing for Innovation......Page 170
2. Can the innovation actually be done? Does the organization have the resources?......Page 172
4. The second phase, design, is something examined in greater detail later.......Page 173
On to Chapter 7......Page 174
References......Page 175
Aligning IT to Meet Business Process Objectives......Page 176
The IT Utility......Page 177
CMM Explained......Page 180
Level 1: Initial......Page 181
Level 3: Defined......Page 182
Level 4: Managed......Page 183
Getting from CMM to Process Improvements......Page 184
Quality and the Balanced Scorecard......Page 187
Process Performance Metrics......Page 192
On to Chapter 8......Page 195
Additional Reading......Page 196
Aligning IT to Promote Learning and Growth......Page 198
Liberate Rather than Empower......Page 199
The Monster in the Corner Office......Page 200
Liberating Your Staff......Page 201
The Challenge of Peopleware......Page 202
Manage Expectations......Page 203
Overcome Fears......Page 204
Motivate Team Members......Page 205
Hiring the Best People......Page 206
A Better Workforce......Page 208
Techniques for Motivating Employees......Page 210
Nontechnological Issues in Software Engineering......Page 212
Creativity Improvement......Page 214
Communications and Group Productivity......Page 216
Management Quality Considerations......Page 218
Training......Page 220
Upside-Down Training......Page 221
References......Page 222
Compliance, Awareness, and Assurance......Page 224
The Proactive Risk Strategy......Page 225
RMMM Strategy......Page 227
Risk Assessment......Page 233
Just What Is Critical to Project Success?......Page 235
Effective Communications......Page 236
Ethics......Page 237
Legal......Page 238
On to Chapter 10......Page 239
References......Page 240
Department of Defense Performance Assessment Guide......Page 242
Aha! Executive Decision Support System (Balanced Scorecard Application)......Page 245
The Performance Organiser......Page 248
Microsoft Balanced Scorecard Framework......Page 251
CorVu 5......Page 254
SAS Strategic Performance Management......Page 256
ActiveStrategy Enterprise......Page 257
QPR 7 Collaborative Management Software Suite, Including QPR ScoreCard, QPR ProcessGuide, and QPR Collaboration Portal......Page 261
QPR Collaborative Management Software Suite......Page 262
QPR ScoreCard Software, QPR ProcessGuide Software, QPR CostControl Software, and Strategy Map Software......Page 265
Healthwise Balanced Scorecard™......Page 267
Reference......Page 270
Problem Solving......Page 272
Quality......Page 273
Groups......Page 274
Reference......Page 275
1. Introduction......Page 276
2.1 Background......Page 277
2.2.1 Initial Contact......Page 278
2.2.2 Evaluation Interview......Page 279
2.3 Software Metrics Capability Evaluation Follow-Up......Page 280
2.3.2 Project Plan and Implementation......Page 281
Appendix B/B: Software Metrics Capability Questionnaires......Page 282
B.1.2 Scoring......Page 284
B.2 Metrics Customer Profile Form......Page 285
B.3.1 Questions for Metrics Capability Level 2......Page 287
B.3.2 Questions for Metrics Capability Level 3......Page 291
B.4.1 Questions for Metrics Capability Level 2......Page 296
B.4.2 Questions for Metrics Capability Level 3......Page 299
Appendix B/C: Software Metrics Capability Evaluation Report: Annotated Outline......Page 304
2.1 General Results......Page 305
3. RECOMMENDATIONS......Page 306
Credibility......Page 307
Motivation......Page 308
Culture/Change History......Page 309
Organizational Buy-In......Page 310
Notes......Page 311
Traditional IT Metrics Reference......Page 314
Typical IT Metrics......Page 315
Developing an IT Assessment Program......Page 316
Traditional Configuration Management Metrics......Page 318
IEEE Process for Measurement......Page 319
Stage 3: Implement Measurement Process......Page 320
Stage 7: Assess Reliability......Page 321
Level 1: Initial Process......Page 322
Level 4: Managed Process......Page 323
Steps to Take in Using Metrics......Page 324
2. Defect Density......Page 325
5. Functional or Modular Test Coverage......Page 326
8. Number of Conflicting Requirements......Page 327
10. Design Structure......Page 328
12. Data or Information Flow Complexity......Page 329
14. Software Documentation and Source Listings......Page 330
McCabe’s Complexity Metric (1976)......Page 331
References......Page 332
The eBay Debate......Page 334
Financial......Page 335
Objective 1: Increase Shareholder Wealth......Page 336
Objective 2: Grow Revenues from International Markets......Page 337
Conclusion: Objectives 1 and 2:......Page 339
Objective 1: Achieve High Levels of Customer Loyalty......Page 340
Objective 2: Mitigate Effects of Disputes on Customer Satisfaction......Page 341
Conclusion: Objectives 1 and 2:......Page 342
Objective1: Keep Web Site Accessible at All Times......Page 343
Objective 1: Expand and Capture Foreign Markets......Page 345
Objective 2: Increase Variety of Items for Sale......Page 346
Conclusion: Objectives 1 and 2:......Page 347
References......Page 348
Appendix D/A: The Balanced Scorecard......Page 350
Appendix D/B: Customer Letter......Page 353
Interviewing......Page 356
Employees......Page 357
Customers......Page 358
Types of Questions......Page 359
Questionnaires/Surveys......Page 360
Observation......Page 363
Documentation......Page 364
Reference......Page 365
Promotes Teamwork......Page 366
Takes Initiative and Accepts Accountability......Page 367
Demonstrates Flexibility......Page 368
Continually Improves Processes......Page 369
Systems Improvement......Page 370
Employee and Team Direction......Page 371
Professional Development......Page 372
The Malcolm Baldrige National Quality Award Program......Page 374
Visionary Leadership......Page 375
Customer-Driven Excellence......Page 376
Organizational and Personal Learning......Page 377
Valuing Employees and Partners......Page 378
Focus on the Future......Page 379
Management by Fact......Page 380
Focus on Results and Creating Value......Page 381
Criteria for Performance Excellence Framework......Page 382
System Foundation......Page 383
Criteria Structure......Page 384
P.1 Organizational Description......Page 385
P.2 Organizational Challenges......Page 386
1.1 Organizational Leadership (70 pts.)......Page 387
1.2 Social Responsibility (50 pts.) Process......Page 388
2.1 Strategy Development (40 pts.)......Page 389
2.2 Strategy Deployment (45 pts.)......Page 390
3.1 Customer and Market Knowledge (40 pts.)......Page 391
3.2 Customer Relationships and Satisfaction (45 pts.)......Page 392
4.1 Measurement and Analysis of Organizational Performance (45 pts.)......Page 393
5 Human Resource Focus (85 pts.)......Page 394
5.1 Work Systems (35 pts.)......Page 395
5.2 Employee Learning and Motivation (25 pts.)......Page 396
6 Process Management (85 pts.)......Page 397
6.1 Value Creation Processes (50 pts.)......Page 398
7 Business Results (450 pts.)......Page 399
7.3 Financial and Market Results (75 pts.)......Page 400
7.5 Organizational Effectiveness Results (75 pts.)......Page 401
Author Note......Page 402
Value Measuring Methodology......Page 404
Step 1: Develop a Decision Framework......Page 405
Task 1: Identify and Define the Value Structure......Page 406
Task 3: Identify and Define the Cost Structure......Page 408
Step 2: Alternative Analysis - Estimate Value, Costs, and Risk......Page 409
Task 1: Identify and Define Alternatives......Page 412
Task 2: Estimate Value and Cost......Page 413
Step 3: Pull Together the Information......Page 414
Task 1: Aggregate the Cost Estimate......Page 416
Task 3: Calculate the Value Score......Page 417
Task 5: Compare Value, Cost, and Risk......Page 418
Task 1: Communicate Value to Customers and Stakeholders......Page 419
Task 4: Use Lessons Learned to Improve Processes......Page 420
Note 2: Sensitivity Analysis......Page 421
Definitions......Page 422
Author Note:......Page 429
Southwest Airlines......Page 430
School......Page 431
Billing Service......Page 433
Warranty Registration System......Page 434
Web Store......Page 436
Vendor Registration......Page 437
Purchasing Systems......Page 439
General Business......Page 440
Resources......Page 442
1.1 Response Time......Page 444
1.3 Database Audit......Page 445
2.1 Review the Security Plan......Page 446
2.5 The Product Base......Page 447
2.6 In-House Development......Page 448
2.8 Reporting......Page 451
3.1 Navigability......Page 452
3.4 Search Engine......Page 453
4.2 E-Commerce......Page 454
5.2 Employee Web Usage......Page 455
Establishing a Software Measurement Program......Page 456
Direct and Indirect Software Measurement......Page 458
Views of Core Measures......Page 459
Use a Software Process Improvement Model......Page 460
SEI CMM......Page 462
Develop a Software Measurement Plan and Case......Page 464
Size......Page 467
3. Automated Methods......Page 468
2. Policy......Page 469
4.1 Overview of Project Measures Activities......Page 470
4.6 Updating......Page 471
5. Contents of Measurement Plan......Page 472
Author Note......Page 474
References......Page 476
Organizational Process Focus (CMM Level 3 Defined)......Page 478
Generic Goals (GG) and Practices (GP)......Page 479
Generic Goals (GG) and Practices (GP)......Page 480
Specific Goals (SG) and Practices (SP)......Page 481
Generic Goals (GG) and Practices (GP)......Page 482
Specific Goals (SG) and Practices (SP)......Page 483
Risk Management (CMM Level 3 Defined)......Page 484
Generic Goals (GG) and Practices (GP)......Page 485
Specific Goals (SG) and Practices (SP)......Page 486
Organizational Process Performance (CMM Level 4 Quantitatively Managed)......Page 487
Generic Goals (GG) and Practices (GP)......Page 488
Specific Goals (SG) and Practices (SP)......Page 489
Generic Goals (GG) and Practices (GP)......Page 490
Generic Goals (GG) and Practices (GP)......Page 491
Specific Goals (SG) and Practices (SP)......Page 492
Generic Goals (GG) and Practices (GP)......Page 493
Distribution Center......Page 494
Product Marketing......Page 495
Enterprise Resource Planning......Page 496
Project Management......Page 497
Software Maintenance......Page 498
General IT Measures......Page 499
INDEX......Page 504