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5 Optimized The alignment practice is an integral The entire IT budget is aligned with The company maximizes return from its
part of IT management and, through business strategy. IT activities and capabilities in terms of
the IT governance board, provides bottom-line impact. The total IT spend is
critical data for communicating with the effectively controlled.
business.
Prioritization is an ongoing process
that is continually reexamined and
upgraded.
Performance Measurement
EXHIBIT F.6
Maturity Level Description Practice Outcomes Business Outcomes
0 Nonexistent There are no company management None None
processes to produce IT performance
measures that are connected to
business impact.
1 Initial/Ad The tracking of IT operational and cost Value is connected to operational IT performance is communicated in IT
Hoc measures occurs. These measures are efficiency only. terms. This lack of relevant performance
used for IT operational decisions and metrics results in the business
Use of portfolios is limited to key
are not regularly communicated to the perception that IT operates unto itself.
development projects.
business. External benchmarking is Business excludes IT from most planning
Activities and resources are directed at
done to answer specific performance




311
activities except for large IT-enabled
operational and maintenance priorities.
questions. Key development projects projects (e.g., ERP).
are ˜project managed.™
2 Repeatable The tracking of IT performance, Value is also connected to end-user By focusing on end-user satisfaction and
but Intuitive including ˜soft™ impact satisfaction, which is driven by service levels, IT brings attention to
measures,occurs regularly but is not availability and service-level tactical and legacy-driven priorities.
connected to strategic intentions. considerations. Although IT is trying to respond to
Some IT performance measures Use of portfolios extended to most business requirements, senior
(service levels, customer satisfaction) development projects. management continues to wonder if IT is
are linked to business impact. Project working on the right things. IT
Service-level considerations impact
portfolios are used to track most management is unable to answer these
budgets and actions.
development projects. questions.
Performance Measurement (Continued)
EXHIBIT F.6
Maturity Level Description Practice Outcomes Business Outcomes
3 Defined The tracking of IT performance occurs IT performance measures are linked to IT™s efforts to build cause-and-effect
Process regularly through documented business impact using cause-and-effect linkages to business performance
measurement processes for which linkages and alignment assessments. drivers increases the level of trust and
training and support are available. IT collaboration with the business. The
Portfolios are used to manage all IT
management has made a commitment to conversation between business and
resources and activities.
one or more process maturity models IT begins to shift from system
Alignment considerations impact IT™s
(SEI/CMM, COBIT, others). IT requirements to business goals.
planning and budgeting processes.
management has made a commitment to
use portfolios to manage IT activities and
resources. Alignment with the business
emerges as a key performance target.
4 Managed Management regularly tracks the IT value is based on IT™s impact on IT is able to readily connect business
and connections of IT performance business plans and performance. priorities to its portfolios. IT
Measurable measurements to business requirements managers are evaluated (measured)
IT performance measures are
and strategic intentions. The validity of on their ability to connect IT resources
coordinated and managed through one




312
cause-and-effect linkage assumptions is with business goals and priorities.
office.
regularly checked. Business managers begin to
Connections to business planning
Responsibility for the ongoing understand the importance of sharing
processes are coordinated and IT
management of performance their goals and strategies with IT.
portfolio resource management
measurement is clearly defined. decisions actively involve the business.
Processes for updating portfolio data
are defined and implemented.
5 Optimized Methods of tracking IT performance IT value is based on IT™s ability to IT portfolios are used as an integral
related to business requirements and change with the business. part of business and IT planning.
strategic intentions are continuously Resource allocation decisions and The dialog between IT and business
improved with best practices, industry priorities are continuously reviewed. is no longer about proving IT value
comparisons, and tools and automation. but about the continuous
Portfolio information is actively used at
Key IT measures are related to agility improvement of IT value.
all levels of IT management.
and the time needed to respond to Performance measures lead to
IT business and technical performance
changing business intentions. improved IT and business
are tracked.
performance.
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