How to demonstrate the value of IT:? From governance to performance measurement of Information Syste

1. Come dimostrare il valore dell’IT:
dalla governance alla misurazione delle
performance dei Sistemi Informativi

2. 1
Agenda
 Performance measurement: trend e prospettive
 il 1987 ed i limiti di un approccio tradizionale
 i paradigmi di un PM evoluto
 Il Balanced Scorecard
 cos’è e come funziona
 grazie (e disgrazie) del Balanced Scorecard
 la logica BSC per il governo delle aree di staff
 Il Balanced Scorecard per la governance dell’area IT
 gli spazi per adottare la “logica” del BSC
 alcune esperienze
 un approccio metodologico
 le sfide da raccogliere

3. 2
Performance measurement:
trend e prospettive

4. 3
La crisi del 1987 (e dintorni)
 ATKINSON A.A. - WATERHOUSE J.H. - WELLS
R.B., A stakeholder approach to strategic
performance measurement, Sloan Management
Review, primavera, 1997
 PM systems based primarily on financial performance measures
lack the focus and robustness needed for internal management and
control. ... A common conclusion is that the PM systems have
measured too many things and the wrong things.

5. 4
I limiti di un approccio tradizionale
alla misurazione delle performance
 Gli ultimi anni di riflessione critica hanno ormai
dimostrato che i tradizionali sistemi di misurazione
delle performance:
 non “vedono” fenomeni di natura non contabile
 non “vedono” i processi
 non “vedono” le performance dei team
 non “vedono” oltre le mura aziendali
 non “vedono” prima
 non “vedono” le performance di alcune aree di staff, ma critiche per
il successo competitivo
 “vedono” sempre allo stesso modo
 sono uno strumento di controllo più che di guida e di orientamento
dell’azione manageriale (top-down view) ovvero fanno “vedere” a
pochi

6. 5
What’s new?
 ABC, ABM, ABB
 Balanced Scorecard
 Cost Management
 Customer Profitability
Analysis
 EVA
 Functional Cost Analysis
 Interorganizational Cost
Management
 Lyfe Cycle Costing
 Process costing
 Quality Costing
 Strategic Management
Accounting
 Target Costing
 The performance pyramid
 Theory of Constraints
 Troughput Accounting
 Value Chain Analysis

7. 6
I paradigmi di un PM “evoluto”
 From beans … to value!
 From tactic … to strategy!
 From measurement … to management!

8. 7
Il Balanced Scorecard

9. 8
Le premesse ...
 In observing and working with many companies,
we have found that senior executives don't rely on
one set of measures in the exclusion of the other.
they realize that no single measure can provide a
clear performance target or focus attention on the
critical areas of their business.
 The complexity of managing an organization today
requires that managers be able to view
performance in several areas simultaneously.
[FONTE: KAPLAN - NORTON, 1992]

10. 9
PROs AND CONs ....
 È un sistema di misurazione
delle performance di tipo
multidimensionale
 Leading vs lagging indicators
 Dimensione strategica e
operativa
 Prospettiva esterna ed
interna
 Flessibilità
 Visibilità (interna ed esterna)
 Deve diventare uno
strumento di management
 Sforzo di personalizzazione
 Manutenzione
 Impegno dei manager
 Costo

11. 10
Chi l’ha provato dice che ...
 Il balanced scorecard agevola il superamento
delle barriere esistenti tra la genesi e la
formulazione delle strategie e la loro
realizzazione:
 strategie indecifrabili
 mancato allineamento con gli obiettivi individuali
 mancata integrazione con il processo di allocazione delle
risorse
 feedback di tipo tattico e non strategico

12. 11
Chi ci ha provato?
 Dal 1992, il Balanced Scorecard è stato introdotto in diversi
contesti aziendali
 Stati Uniti
 Europa
 Italia
 In termini generali, comunque, si può rilevare che il Balanced
Scorecard si è dimostrato uno strumento alquanto flessibile,
trovando applicazione in molteplici tipologie di aziende
 aziende industriali appartenenti a diversi settori (es. informatico, chimico,
ecc.)
 aziende commerciali e di servizi (es. banche, assicurazioni, ecc.)
 organizzazioni orientate al profitto e non

13. 12
Funziona davvero?
IMA Survey 2001
 1.300 aziende
 il 40% di queste aziende sta
utilizzando il Balanced
Scorecard
 la maggior parte delle aziende
che non utilizzano il Balanced
Scorecard ha un sistema di
misurazione di tipo tradizionale
 l’80% delle aziende ha “messo
le mani” sul proprio sistema di
misurazione negli ultimi 3 anni
 più del 50% delle aziende
afferma di essere in una fase di
“ripensamento” del proprio
sistema di misurazione
5% 3%
2%
52% 48%
22%
0%
15%
30%
45%
60%
Supporting
management
business
objectives and
initiatives
Communicating
strategy to
employees
Supporting
innovation
BSC users Non users

14. 13
Funziona davvero?
BSCOL Survey 2002
 500 aziende
 250 have a BSC in
place
 125 had sufficient
experience with the
scorecard
 125 indicated that it was too
early to tell about impact
15%
64%
21%
Breakthrough results
Some progress
No or limited results

15. 14
Funziona davvero?
Where are they now?
 Per più del 50% delle aziende oggetto di
analisi il progetto di implementazione del
Balanced Scorecard è considerato come un
“resounding success” …
 The scorecard can be used to drive value …
 … realizing fundamental improvements in the bottom line.
 The scorecard can be used to drive values …
 realizing substantive change in employee orientation and
corporate beliefs.
[FONTE: MAVRINAC - VITALE, 1999]

16. 15
La logica per il governo
delle aree di staff ...
STRATEGIC BUSINESS UNIT SHARED SERVICE UNIT
3. LINKAGE SCORECARD
Define the SBU objectives and measures that the support unit is expected to help achieve.
2. SHARED SERVICE UNIT
SCORECARD
A business-in-a-business
Mission
Financial
Learning &
growth
Customer
Internal
processes
1. SERVICE
AGREEMENT
4. CUSTOMER
FEEDBACK

17. 16
Il Balanced Scorecard
per la governance dell’area IT

18. 17
Gli spazi per “sposare” la logica
del Balanced Scorecard
 La “posta” in palio è elevata …
 … more than 50% of all corporate investment is spent on IT,
directly or indirectly. [Remenyi – Money – Sherwood, 2000]
 The companies that manage their IT investments most successfully
generate returns that are as much as 40% higher than those of
their competitors. [Ross – Weill, 2002]
 La misurazione delle performance nell’area IT? An
ambiguous art!
 The measuring and managing of IT benefits is a difficult business
challenge that has plagued the IT industry, IT professionals,
consultants and academics, for many years. [Remenyi – Money –
Sherwood, 2000]
 The ERP case …

19. 18
The ERP case …
 Soon, every Big 5 consulting firm and software vendor will have
a unique methodology for measuring ERP value.
 57% of participants [to the survey] are not measuring ERP
value.
 Of the companies measuring value, approximately 70% state
that they attempt to measure ROI.
 When asked how their ROI is calculated the answer are not
consistent and many of the participants indicate that the method
of calculation either changes frequently.
 Measurement design requires specificity and measuring ERP
system performance is challenging because many of the
benefits are intangible and therefore not easily quantified.
[FONTE: BRADFORD - RICHTERMEYER ,2000]

20. 19
Gli spazi per “sposare” la logica
del Balanced Scorecard
 A really new mandate for IT organizations?
 The age of proprietary information systems is coming to an end,
and the age of shared services is dawning. Don’t panic, CIOs will
become … [Hagel – Seely, 2001]
 strategists and entrepreneurs
 knowledge brokers
 relationships managers
 negotiators
 Anche nell’area IT esiste un gap tra “pensiero” e
“azione”?
 While a number of factors distinguish these top performing
companies, the most important is that senior managers take a
leadership role in a handful of key IT decisions. [Ross – Weill,
2002]

21. 20
A new mandate for IT
organizations?
BASIC COMPETENCY FOCUS STRATEGIC COMPETENCY FOCUS
STAGE Costs Quality Agility Innovation
I. DEFENSIVE IT expenditures are
externally budgeted,
often as a share of
revenues.
Quality focus is
exclusively on system
availability.
Delivery schedules are
constrained by resources
and internal priorities.
Creative budgeting and
accounting are used to
defend against
outsourcing.
II. REACTIVE Service level
agreements and
charge-back systems
are employed.
Quality focus on
systems availability and
response time.
Resource allocation is
driven by politics.
Technologies are used
in innovative ways to
reduce IT cost.
III. RESPONSIVE Units costs and
demand are quantified
and managed.
Quality is managed to
negotiated service level
agreements.
Methods are supplied to
reduce development
cycle time.
The role of technology
in business strategy is
considered.
IV. STRATEGY-FOCUSED Technology investment
decisions are informed
by business strategy.
Availability and
reliability are no longer
an issue.
Broad focus is on time to
market and competitive
advantage for the
business.
Technology is
embedded in the firm’s
value perspective.
[FONTE: GOLD, 2002]

22. 21
What happens when senior
managers ignore their IT
responsibilities?
IT DECISIONS SENIOR MANAGEMENT’S ROLE CONSEQUENCES OF ABDICATING THE
DECISION
How much should we spend
on IT?
Define the strategic role that IT will play in the
company and then determine the level of
funding needed to achieve that objective.
The company fails to develop an IT platform that
furthers its strategy, despite high IT spending.
Which business processes
should receive our IT
dollars?
Make clear decisions about which IT initiatives
will and will not be funded.
A lack of focus overwhelms the IT unit, which
tries to deliver many projects that may have little
companywide value or can’t be implemented well
simultaneously.
Which IT capabilities need
to be companywide?
Decide which IT capabilities should be provided
centrally and which should be developed by
individual businesses.
Excessive technical and process standardization
limits the flexibility of business units, or frequent
exceptions to the standards increase costs and
limit business synergies.
How good do our IT
services really need to be?
Decide which features are needed on basis of
their costs an benefits.
The company may pay for service options that,
given its priorities, aren’t worth the costs.
What security and privacy
risks will we accept?
Lead the decision making in the trade offs
between security and privacy on one hand and
convenience on the other.
An overemphasis on security and privacy may
inconvenience customers, employees, and
suppliers; an underemphasis may make data
vulnerable.
Whom do we blame if an IT
initiative fails?
Assign a business executive to be accountable
for every IT project; monitor business metrics.
The business value of systems is never realized.
[FONTE: ROSS - WEIILL, 2002]

23. 22
Il Balanced Scorecard nell’area IT:
alcune esperienze
LEARNING & GROWTH PERSPECTIVE
Attract and
retain people
with key skills
Focus on
career
development
Promote a
culture of
innovation
Acquire skills
in enabling
technologies
FINANCIAL PERSPECTIVE
Manage unit
costs of IT
Maximize
stakeholder
returns Maximize
business unit
value creation
CUSTOMER PERSPECTIVE
Demonstrate
competitive
costs
Deliver quality
service
Maximise
business unit
productivity
Achieve
business unit
strategies
FROM COMPETENCY … … TO CONTRIBUTION
INTERNAL PROCESSES PERSPECTIVE
Optimize IT
internal
processes
Undderstand
emer-ging
technology
applications
OPERATIONAL EXCELLENCE BUSINESS UNIT ALLIANCE SOLUTIONS LEADERSHIP
Realize
scale
economies
Manage
service quality
Standardise
platforms and
infrastructures
Deliver on
schedule
Effectively
support
end-users
Improve
business
unit
productivity
Understand
business units
strategies
Propose
enabling
solutions

24. 23
Il Balanced Scorecard nell’area IT:
alcune esperienze
FINANCIAL PERSPECTIVE
PEOPLE PERSPECTIVE
Motivazione
Know
how
Produttivit
à
Costo area
processi &
sistemi
Redditivit
à
aziendale Crescita
aziendal
e
Investimenti
processi &
sistemi
CUSTOMER PERSPECTIVE
Supply
chain
aziendale
Project
managemen
t
PROCESSI
AZIENDALI
Gestione
offerte
aziendali
Customer
satisfaction
PROCESSES PERSPECTIVE
Mapping
fabbisogno
Infrastrutttura
tecn./applicativa
Servizio
reso
SUPPLY CHAIN INTERNA
Innovazione
Gestione
progetti
interni

25. 24
Il Balanced Scorecard nell’area IT:
alcune esperienze
PEOPLE PERSPECTIVE
PROCESSES PERSPECTIVE
CUSTOMER PERSPECTIVE
FINANCIAL PERSPECTIVE
Gestione
progetti
interni
Motivazione
Know
how
Produttivit
à
Mapping
fabbisogno
Infrastrutttura
tecn./applicativa
Servizio
reso
SUPPLY CHAIN INTERNA
Innovazione
Supply
chain
aziendale
Project
managemen
t
PROCESSI
AZIENDALI
Gestione
offerte
aziendali
Costo area
processi &
sistemi
Redditivit
à
aziendale Crescita
aziendal
e
Investimenti
processi &
sistemi
Customer
satisfaction
% progetti on time
% tempo in progetti
% rispetto TTM
% attività improduttive
N. FTE
Employee satisfaction
Turnover in entrata
Turnover in uscita
% copertura k-competencies
% tempo in formazione
% bdg formazione
% utilizzo bdg formazione
Tempo medio evasione richieste
Anzianità media backlog
% richieste evase on time
% tempo per rilevazione
fabbisogno
Tasso rinnovao asset
Anzianità media parco applicativo
% tempo in attività di supporto
KPI produttività
Tempo medio evasione ordine
% ordini evasi on time
Aging magazzino
% successo offerte
N. offerte per commerciale
Tempo medio chiusura offerta
Continuità
Integrità
Disponibilità-accessibilità
Facilità d’uso
Copertura funzionale
Orientamento serv. (Appr.)
Operatività media %
N. interventi di ricostruzione
N. restore dei dati
N. copie medie per DB
Disponibilità media applicativi
% copertura fabbisogno applicativo
TCO

26. 25
IT management
Un approccio metodologico …
IT measures
IT performance
areas
IT strategic
initiatives
IT mission
IT vision
IT values

27. 26
Le sfide da raccogliere
 Quale governance senza
misurazione?
 Quale ruolo nella diffusione
di una cultura performance-
oriented?
 Dove la tecnologia, da sola,
non basta …

28. 27
Il Balanced Scorecard
CUSTOMER
PERSPECTIVE
KPA INDICATORI
FINANCIAL
PERSPECTIVE
KPA INDICATORI
INTERNAL PROCESSES
PERSPECTIVE
KPA INDICATORI
INNOVATION &
LEARNING PERSPECTIVE
KPA INDICATORI