FTF Winter Workshop--IT Metrics

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Presentation by Stone House Consulting to Institutional Investor's Financial Technology Forum at their Winter Workshop in February 2009.

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FTF Winter Workshop--IT Metrics

  1. 1. Not Made to Measure: IT Metrics and Productivity Holly H. Miller, Partner 25 February 2008 © 2009 Stone House Consulting, LLC
  2. 2. Why Measure? <ul><li>Identify and monitor risk </li></ul><ul><li>Track workload </li></ul><ul><li>Evaluate productivity </li></ul><ul><li>Monitor responsiveness, success or failure </li></ul><ul><li>Manage costs </li></ul><ul><li>Assess quality </li></ul><ul><li>Simply help business lines capture their metrics </li></ul>© 2009 Stone House Consulting, LLC
  3. 3. Measurement for Whom? <ul><li>Corporate leadership </li></ul><ul><li>IT leadership (you!) </li></ul><ul><li>Clients </li></ul><ul><ul><li>Internal </li></ul></ul><ul><ul><li>External </li></ul></ul><ul><li>Colleagues </li></ul><ul><ul><li>Internal </li></ul></ul><ul><ul><li>External </li></ul></ul><ul><li>… and how do THEY utilize the information provided? </li></ul>© 2009 Stone House Consulting, LLC
  4. 4. Absolute or Relative? <ul><li>Vis-à-vis service-level agreements </li></ul><ul><ul><li>With internal clients </li></ul></ul><ul><ul><li>With external vendors </li></ul></ul><ul><li>Evaluate trends over time </li></ul><ul><li>Look at ratios </li></ul><ul><li>Benchmark against peer groups </li></ul><ul><ul><li>External </li></ul></ul><ul><ul><li>Internal </li></ul></ul><ul><ul><li>One internal client vis-à-vis another internal client </li></ul></ul><ul><li>Provide some measure of size </li></ul><ul><ul><li>Time </li></ul></ul><ul><ul><li>Effort </li></ul></ul><ul><ul><li>Complexity </li></ul></ul><ul><ul><li>Cost </li></ul></ul>© 2009 Stone House Consulting, LLC
  5. 5. Best Practices <ul><li>Think about the objective(s) behind development of metrics </li></ul><ul><li>Utilize metrics as a diagnostic tool </li></ul><ul><ul><li>Identify and resolve problems </li></ul></ul><ul><ul><li>Discover potential risks proactively </li></ul></ul><ul><li>Develop and communicate key metrics to influence decision-making and behavior </li></ul><ul><ul><li>Couple with budget data to develop cost-allocation models </li></ul></ul><ul><ul><li>Assess vendor performance </li></ul></ul><ul><ul><li>Build the case for system purchases, upgrades or replacement </li></ul></ul><ul><ul><li>Evaluate outsourcing </li></ul></ul><ul><ul><li>Justify staffing and compensation decisions </li></ul></ul><ul><li>Ensure consistency in metrics captured </li></ul><ul><ul><li>Approach should be consistent </li></ul></ul><ul><ul><li>What is measured will change over time </li></ul></ul><ul><ul><li>The importance of different metrics will change over time </li></ul></ul>© 2009 Stone House Consulting, LLC
  6. 6. Best Practices <ul><li>Ensure your metrics are pertinent </li></ul><ul><li>Provide qualitative as well as quantitative information </li></ul><ul><li>Consider the audience </li></ul><ul><ul><li>Educate others on the importance of key metrics (e.g., cost drivers, stress indicators, success / failure measures) </li></ul></ul><ul><li>Coordinate with operations and risk management </li></ul><ul><li>Remember – every business is different </li></ul>© 2009 Stone House Consulting, LLC
  7. 7. Traditional Investment Manager: Close-Up Examination of Trading-Related Risk for One Investment Team © 2009 Stone House Consulting, LLC Data analyzed using OPERA™, courtesy of Basis Point Group
  8. 8. Traditional Investment Manager: Close-Up Examination of Trading-Related Risk for One Investment Team © 2009 Stone House Consulting, LLC Data analyzed using OPERA™, courtesy of Basis Point Group
  9. 9. Traditional Investment Manager: Close-Up Examination of Trading-Related Risk for One Investment Team © 2009 Stone House Consulting, LLC Data analyzed using OPERA™, courtesy of Basis Point Group
  10. 10. Contact Details <ul><li>Holly H. Miller </li></ul><ul><li>Partner </li></ul><ul><li>+1 610 358 1791 phone </li></ul><ul><li>+1 917 587 2411 cell </li></ul><ul><li>+1 509 479 1831 fax </li></ul><ul><li>[email_address] </li></ul><ul><li>Stone House Consulting, LLC </li></ul><ul><li>Strategic, operational and IT consulting for investment managers and hedge funds </li></ul><ul><li>www.stonehouseconsulting.com </li></ul><ul><li>New York | Philadelphia | Wilmington </li></ul>© 2009 Stone House Consulting, LLC

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