Performance indicators considered an essential important point of discussion within frame of general business management. The management of information technology (IT) departments is no different. Business unit should have concrete and measurable key performance indicators (KPIs) that can be used to measure IT contributions to the organization and serve as department-specific measures of performance.
To define meaningful KPI measures that align with the goals of the organization, we need to go through questions below
In this article I will explain the way that we can follow to Measure Department Key Performance Indicators by using Balanced Scorecard. WHY? Because balanced scorecard has helped many organizations to utilize intangible assets they need for future growth, and most organizations have has viewed the matter as a complement rather than a replacement for financial assessment measures.
I would add that Balanced scorecards have long been used in strategic business management to track key performance, indicators and are designed to provide a framework to manage resources.
There are four basic viewpoints to take with the KPI balanced scorecard:
In Information Technology Services companies and organizations have developed and created a set of Key Performance Indicators for multiple Information Technology Services areas in order to best provide Reliability, Availability and Serviceability (RAS) metrics. These areas may include Help Desk/User Services, Online services, Academic Technology, Cloud Computing Services, Technical Services, User Services Mobile Application Downloads, Information Technology Services Tactical Plan Counts and Business Intelligence Data Warehouse Usage
For instance, of a KPI balanced scorecard in action. A regional Telecom Company is looking to increase its profits by increasing revenue and lowering costs (financial perspective), by increasing mobile data revenue and controlling third party services provider lease costs. So the goal is to provide the best services possible to the campus community at the lowest possible costs To achieve part of that goal, the Telecom determines to lower prices and improve services to entice more customers (customer perspective), using metrics such as satisfaction ratings and customer rankings as performance measurements. To improve their services and products, they decide to improve internet package and featuring (internal process perspective), using different services packages such as mobile data protocol, 4G LTE network that let customer to download files from the Internet up to 10 times faster than with 3G. To help improve customers’ subscription the telecom offers a stock incentive program and more training with targets for number of employees trained to help and server large number of clients and new customers.
Based on that, more balance should be achieved in how performance is viewed between:
Financial and non - financial measures
Long - term and short - term Measures
To achieve this balance organization believe that performance should be considered from four different perspectives namely
To define meaningful KPI measures that align with the goals of the organization, we need to go through questions below
- What are the business / organization measures?
- How do these translate into ICT service measures?
- How does a process support the ICT service measures?
- How will collect and analyze the measure?
In this article I will explain the way that we can follow to Measure Department Key Performance Indicators by using Balanced Scorecard. WHY? Because balanced scorecard has helped many organizations to utilize intangible assets they need for future growth, and most organizations have has viewed the matter as a complement rather than a replacement for financial assessment measures.
I would add that Balanced scorecards have long been used in strategic business management to track key performance, indicators and are designed to provide a framework to manage resources.
There are four basic viewpoints to take with the KPI balanced scorecard:
- Financial perspective – tracking financial performance.
- Customer perspective – tracking customer satisfaction, attitudes, and market share goals
- Internal process perspective – covers internal operational goals needed to meet customer objectives.
- The learning and growth or innovation perspective- intangible drivers for future success such as human capital, organizational capital, training, informational systems, etc
For instance, of a KPI balanced scorecard in action. A regional Telecom Company is looking to increase its profits by increasing revenue and lowering costs (financial perspective), by increasing mobile data revenue and controlling third party services provider lease costs. So the goal is to provide the best services possible to the campus community at the lowest possible costs To achieve part of that goal, the Telecom determines to lower prices and improve services to entice more customers (customer perspective), using metrics such as satisfaction ratings and customer rankings as performance measurements. To improve their services and products, they decide to improve internet package and featuring (internal process perspective), using different services packages such as mobile data protocol, 4G LTE network that let customer to download files from the Internet up to 10 times faster than with 3G. To help improve customers’ subscription the telecom offers a stock incentive program and more training with targets for number of employees trained to help and server large number of clients and new customers.
Based on that, more balance should be achieved in how performance is viewed between:
Financial and non - financial measures
Long - term and short - term Measures
To achieve this balance organization believe that performance should be considered from four different perspectives namely
- Customer – How the organization is performing in the eyes of customers
- Internal Business Processes – How the organization is performing in the day to day processes it must carry out efficiently and effectively
- Learning & Innovation – Performance required to ensure the long term development of the organization Shareholder – Financial Performance measures
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