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Biz-IT Financial Index 2010

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Here, is a list of indicators from financial perspective which could be good starting point as we move away from doing lip service to IT-Business alignment issue to actually working towards it. There …

Here, is a list of indicators from financial perspective which could be good starting point as we move away from doing lip service to IT-Business alignment issue to actually working towards it. There are 10 indicators to start with.


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  • 1. Financial Indicators for CIO to ensure IT & Business Alignment in 2010
    Sample charts attached
    http://www.iCMGworld.com
    Biz-IT Financial Index-2010
    Version 1.1
  • 2. Overview
    Summary
    Here, is a list of indicators from financial perspective which could be good starting point as we move away from doing lip service to IT-Business alignment issue to actually working towards it. There are 10 indicators to start with.
    Performance Indicators - Example
    Each indicator has ( definition, formula, range, optimization directions, associated strategies).
    A sample (based on case study) is attached for each indicator
    A sample for how this indicator can evolve in 2010 is also provided
    How to use it?
    Define the current value and target value for each indicator
    Identify the strategies and define the associated initiatives
    Color combination (red, yellow, green) for Score
    Red ( 0 -40), indicates that “NOT OK” performance
    Yellow (41-80), indicates “OK” performance
    Green ( 81-100) indicates “EXCELLENT” performance
    http://www.iCMGworld.com
  • 3. 10 Performance Indicators for CIOs in 2010 ( to start with ;-)
    http://www.iCMGworld.com
    2
    1
    3
    4
    5
    7
    6
    8
    9
    10
  • 4. Ratio of % growth of IT budget versus % growth of revenues
    http://www.iCMGworld.com
    1
    2009
    2010
  • 5. Ratio of % growth of IT budget versus % growth of revenues
    http://www.iCMGworld.com
    1
    Direction of optimization
    2009
    2010
    Your organization
    Your organization
    Target value
    Current Value
  • 6. % IT Budget of Total Revenues
    2
    Direction of optimization
    2009
    2010
    Your organization
    Your organization
    Target value
    Current Value
    http://www.iCMGworld.com
  • 7. % of IT initiatives/projects championed by the business
    http://www.iCMGworld.com
    3
    Direction of optimization
    2009
    2010
    Your organization
    Your organization
    Target value
    Current Value
    http://www.iCMGworld.com
  • 8. % of current initiatives driven by IT
    4
    Direction of optimization
    2009
    2010
    Your organization
    Your organization
    Target value
    Current Value
    http://www.iCMGworld.com
  • 9. % IT Capital Spending of Total Investment
    5
    Direction of optimization
    2009
    2010
    Your organization
    Your organization
    Target value
    Current Value
    http://www.iCMGworld.com
  • 10. % of IT costs associated to IT maintenance
    http://www.iCMGworld.com
    6
    Direction of optimization
    2009
    2010
    Your organization
    Your organization
    Target value
    Current Value
    http://www.iCMGworld.com
  • 11. IT Spending per Employee per year
    7
    Direction of optimization
    2009
    2010
    Your organization
    Your organization
    Target value
    Current Value
    http://www.iCMGworld.com
  • 12. IT to Total Employees Ratio
    http://www.iCMGworld.com
    8
    Direction of optimization
    2009
    2010
    Your organization
    Your organization
    Target value
    Current Value
    http://www.iCMGworld.com
  • 13. % of Biz-IT time associated to new IT investment*
    http://www.iCMGworld.com
    9
    Direction of optimization
    2009
    2010
    Your organization
    Your organization
    Target value
    Current Value
    http://www.iCMGworld.com
    * The total "budgeted" time for interactions between Biz and IT, compared to time associated to new IT investment?
  • 14. % of IT costs (outsourced) relative to total IT costs
    10
    Direction of optimization
    2009
    2010
    Your organization
    Your organization
    Target value
    Current Value
    http://www.iCMGworld.com
  • 15. Categories of Financial Indicators for IT & Business Alignment – its impact on overall performance measurement
    http://www.iCMGworld.com
  • 16. Weightage for each category of Financial Indicators enabling IT & Business Alignment
    http://www.iCMGworld.com
  • 17. Categories of Financial Indicators
    http://www.iCMGworld.com
  • 18. Financial Indicators for IT & Business Alignment – 2009 to 2011…to be audited every 60 days
    http://www.iCMGworld.com
    Color combination (red, yellow, green) for Score
    Red ( 0 -40), indicates that “NOT OK” performance
    Yellow (41-80), indicates “OK” performance
    Green ( 81-100) indicates “EXCELLENT” performance
  • 19. Need help in developing the metrics ?
    http://www.iCMGworld.com
    Equal to 10
    Weighted indicators for scorecard or benchmarking, Name of the item, relative weight and the description,
    Value. It is the ideal value or current performance level of the key performance indicator.
    Measure. This option indicates the measurement criterion in which the value or performance level of an indicator is judged. For e.g. it might be in percentage, Dollars, score, and the like. Min and Max. . Optimization. Target Description.
  • 20. 10 Performance Indicators for CIOs in 2010[Optimization directions, maximized = 8, minimized=2]
    http://www.iCMGworld.com
    2
    maximize
    maximize
    1
    3
    4
    maximize
    maximize
    5
    6
    8
    7
    maximize
    maximize
    minimize
    minimize
    9
    maximize
    10
    maximize
  • 21. Summary of financial performance indicator values for 2010
    http://www.iCMGworld.com
  • 22. Overall Performance
    2009
    2010
    Your organization
    Your organization
    Target value
    Current Value
  • 23. Action item in 2010…
    Do you need performance indicators related to strategy, processes, systems, technology, operations, etc..?
    Do you need help in defining such indicators across multiple departments,
    Do you need external help in quarterly audit to ensure progress?
    Email to megan.wilson@icmgworld.com
    http://www.iCMGworld.com