This document discusses the importance of measuring value delivered to clients, rather than just metrics. It provides examples of defining strategic value drivers and priorities and aligning metrics and targets to those priorities. Value is defined as things like improvements suggested and delivered, business outcomes achieved, and how much the service delighted the end user. The document advocates adopting a methodology to continuously identify value, define metrics, capture results, and improve.

1. Value AND Metrics

2. Basis of my ontology !
Business
Improve
Agility
Achieve
High
Performance
Maximize
Value
Achieve
Competitive
Advantage
IT
CIO Advisory & Transformation Services

3. What is common between Pilots and CXO s

4. But
30 of 34
measure
DID NOT*
are measurements serving their purpose ?
* Representative case ..based on company experience

5. The new holy grail of service measurement
VALUE

6. What is value to a client ?
Service delivered as promised (SLA met)
Improvements suggested
Improvements delivered
End user delighted
Business outcome delivered (Owned)
Business outcome influenced

7. Service provider deliver value ?
Infrastructure layer
Platform layer
Business process layer
Point of service integration
Software or application layer
This is where „BUSINESS‟ value
gets created
This is where I am

8. Example Value Delivered ( Value Register)
Reusable artefacts in Performance Testing - Planning
Start Date End Date Effort (pdays) Category
28-Jul-2009 10-Sep-2009 12 $ 70,000 savings per year
Srno Goal Description Targets Actuals
1 Test effort reduction on planning From 5 To 3 days Average: 2 days of effort
reduction in planning
2 Test effort reduction on performance test
setup
From 4 To 2 days From 4 To 2 days
SIP was undertaken to make Test Planning less time consuming and cost effective and thus bringing
down the overall testing costs to the project. Also the SIP was executed to capture and develop certain
documents that will help speed up the activities of test setup.
Assets Considered: Internet Banking, XXXXXX
Benefits of these artefacts are derived in almost all projects. The performance planning effort is reduced
by 2 days and performance test team has to spend very less time to do the test set-up leading to reduced
dependency on project team
Srno Projects Benefits
1 All Projects (27 projects) after
this SIP has been implemented
Performance Test Plan effort had been reduced by 2 days
resulting in savings of (32X2000) - $64,000

9. Evolving approach
Finding out what is value ?
Define
Strategic
Value
Drivers &
Priorities
Identify
Metrics &
Targets
Capture &
Report
Establish
Continuous
Improvement
DICE Methodology

10. Example Airline
Performance Category –Business Outcomes
• Contribution to Delay/ inaccurate Crew allocations
• Contribution to reduction in “Look to book ratio” – How many people visiting the site (xxxyt.com)
and making a booking ( i.e. creating a PNR).
• Contribution to Number of complains about Frequent Flyer point accrual /redemption.
• Contribution to increase in aircraft turnaround time (MRO)
• Contribution to reduction aircraft maintenance schedule (MRO)
• Contribution to reduction in MRO inventory count accuracy
• Contribution to reduction in on-time delivery of operational plan components
• Contribution to reduction in Crew productivity
• Contribution to reduction in Crew Costs optimization
• Contribution to increase in delay/loss of cargo
• Contribution to increase in cargo billing issues
• Contribution to decrease in Revenue tonnes per kilometer (RTK)
• Contribution to reduction in number of bookings (through direct sales)
• Contribution to number of disputed booking made ( i.e. booking with wrong pricing, wrong
destination and or pricing )

11. Measures aligned to strategic priorities
$ - Business Quality; $ - Optimization; $ - Avoidance
Measurement Metric/ KPI
Customer Satisfaction • NPS (Net Promoter Score)
Business Partnership
• No of PoC‟s per quarter - business take up
• Value Adds per year
• Number of forums with business participation enabled by provider
• Business SLAs met
Technology Leadership
• Technology Superiority
• Innovation Index
• Agility Index
• Collaboration Index
• Community cloud solution offered for XXYT take up
Operational Excellence
• Exceeding Minimum Service Levels
• Achieving Expected Service Levels
• Projects (ADE + Transformation + Transition) executed on time/ on budget
• Portfolio Simplicity index
Engaged Organization
• eCDI Survey results
• # of hours of learning provided/ Quarter
• # of XXYT staff rotation to ODC /half yearly
BIS is a Business
• AMS (IT Run) spend reduction YoY
• ADE Spend reduction YoY
• Percentage of variable costs in Total IT Run costs
• Savings realized & reinvested
• NPV/ROI
• # of proactive proposals submitted
• % of work delivered from offshore

12. In conclusion
 Value is tied to context
 Perception of the recipient
 Her personal context
 New measures may not be required
 Required
 Processes and Capabilities to understand context
 Approach to link services to context and need
 Deliver to need

13. The Future - Millennia Dash Board
Technology
Metrics
Methodology
Metrics
Dollar Power
Sustainability Human
Excellence
Social Media
Green meetings
(Quarterly)
45
CSR
Hours
300
Women in Top
Management
10%
GHG (Green
House Gas)
Reduction
15%
% Alternative
Energy
12%
Green Data
Centres
15
Cost
Reduction
18%
Paper
Recycling
Per Capita
Energy
Reduction
34%
60%

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