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Moving From Transaction

Orientation To Outcome
Orientation
Washington State Department of
Labor & Industries
FORRESTER STUDY


Business Leaders' Perception
IT Holding Back Business
50%
IT Budget
Maint. & Ops.
66%
Business Leaders Over Estimate Available IT Spend
Accelerating Business Requires IT To Change Focus and Metrics
IT and Business Leader Measurement Perspectives


IT cost per business service supported
Internal customer satisfaction survey score
IT spend by business objective (margin, revenue, growth, etc.)
Percentage of IT projects that meet or exceed expected benefits
Percentage of IT spend on run, grow, change the business
Yr/Yr IT budget growth vs. revenue growth
Yr/Yr unit cost of infrastructure, systems, apps maintenance
IT spend as a percentage of business revenue
Percentage of IT budget spend on R&D, emerging tech, etc.
External customer satisfaction (organizations customers) survey
score
Business Rank IT Rank
13
Not in top 20
?
?
Rethinking the CIO Dashboard Relevance for IT and Business


Rethinking the CIO Dashboard Relevance for IT and Business


DELIVERY Key Performance Indicator


Measures ITs Ability To Fulfill Its Obligations

Domains
Help Desk response time for tickets and incidents
PMO on-time, on-budget performance
Customer Satisfaction - internal and external
DELIVERY Key Performance Indicator


L&I Key Performance Indicator - Delivery
Measures ITs ability to fulfill its obligations

Mission: Do No Harm


Deployment Process Exceptions (Hot Fixes)
Goal - 0
Note: We had 17 Hot Fixes in J uly of 2012 when we began
monitoring them.
May 2014 Jun 2014 Jul 2014 Aug 2014 Sept 2014
#of exceptions
1 2 1 2 2
% of deployments
w/o an exception
93.8% 88.2% 80% 81.8%
Rethinking the CIO Dashboard Relevance for IT and Business


OUTCOME Key Performance Indicator


Tie Technology Spending To Business Results

Domains
Financial Measure benefits and value of technology
Market Dynamics ITs contribution to achieving changing
business outcomes
Industry/sector KPIs - benchmarks
OUTCOME Key Performance Indicator


L&I Key Performance Indicator - Outcome
Ensure the linkage between spending and business results
% of IT spend on run, grow, or transform the business
Goal Decrease Run, Increase Grow and/or Transform








Run activities that support core business operations
Grow organic growth and increased customer demand
Transform changes in the business model, introduction of new products and services
Rethinking the CIO Dashboard Relevance for IT and Business


HEALTH Key Performance Indicator


Measure The Fitness Of Existing IT Investments

Domains
Governance - appropriate ownership, oversight, and alignment
among project stakeholders
Performance - scalable, and secure technology environments
Efficiency - in conjunction with an industry benchmark

HEALTH Key Performance Indicator


L&I Key Performance Indicator Health
Benchmarks
L&I % of IT Category Spend Compared to Govt Benchmark
Remaining71% in the Categories: Application Maintenance,
Compute (Mainframe/Servers), Database, Delivery Services (PM/BA), Storage,
User Service, Voice Network
Rethinking the CIO Dashboard Relevance for IT and Business


AGILITY Key Performance Indicator


Assess Flexibility And Speed In Current And Future Technology
Investments

Domains
People Agility Measuring the current skill sets and planning for
future competency needs
Technology Agility Having flexible technologies that can offer
reusable components and modular functions
Financial Agility - quickly move to new technologies and systems
to support business needs
AGILITY Key Performance Indicator


L&I Key Performance Indicator Agility
Services Management
Goal Maximum Re-use
Mar 2014 Apr 2014 May 2014 Jun 2014
#of services
NA NA NA 121
#of services re-used
NA NA NA 81 (67%)
Service Purpose
Revenue Recording Look up fee schedule information, menu items and inquire about money paid for
an activity.
Messaging Service Provides data exchange between mainframe and web.
Data Protection Service Allows encryption and decryption of "key" data
Purchase Transaction Creates purchase transaction records (non-permit items) and retrieve a
purchase transaction record.
Account Standard Account Standard Message returns information about the employer of a claim.
Document Retrieve Retrieves a *.TIFF document from the imaging system, converts the document
to a PDF document and returns the PDF document.
Claim Standard 2 Returns information detail about a claim.
Work List Service Composite process as part of claim submission
Key Recommendations


Delivering consistent, reliable technology is table stakes
Anticipate future business needs

Technology-centric view creates silos
Develop and execute on customer life-cycle view to create
cohesion

Alignment is not enough
Ensure joint accountability for business outcomes

Velocity of change is unprecedented
Drive people, process, and technology agility

Consider KPIs as managing a portfolio and drive a portfolio
mindset for BT decisions
CIO role has shifted from technology leader to business leader
New perspective Business Technology

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