We tend to think of the vision and the objectives in “IT techie” terms. We use terms like, reduce average speed of
answer, improve first call resolution rate, or increase the percentage of incidents resolved at tier-1 to describe our high
level objectives.
Gartner reports “IT metrics often have no alignment with business metrics.” Identifying and aligning those performance
relationships is crucial to demonstrating the IT organization’s contribution to business value.
We need to rethink the way we describe our vision and high-level business objectives for our ITSM initiative. We know
that bringing best practices to our Service Desk function and Incident Management process will ultimately improve our
first call resolution rate and/or increase the percentage of incidents that are resolved by tier-1 support. The question
is what value does this bring to the business? You’re going to ask for money and other resources to implement the
changes necessary to make these goals a reality but what are you going to promise in return for the investment the
business makes in your plan?
Ziff Davis reports that an analysis of benchmark data from 2,100 companies found that world-class IT organizations,
those that achieve peak efficiency and effectiveness, spend 7% more per end-user on IT operations than typical
companies, but on average, earn that amount back fivefold in lower operational costs.
Think about what that says. We need to stop presenting our plans as simply initiatives to be funded (costs) but as
investment opportunities for the business; Opportunities that have tremendous potential to pay a return on that
investment (ROI). We need to begin to think of, and talk about, the business priority as the most important top or
bottom line payoff our initiative is expected to provide. This must be a value that drives the success of the business
and should be expressed in terms that matter to the CEO or board of directors like revenue growth, income growth,
protecting future revenues, cost reduction, future cost avoidance, or regulatory compliance.
One way to figure out what is important to your board of directors or CEO is to read your company’s annual report. Get
to know the lingo that your CEO is using to describe the business and pick up on that language. It’s likely you’ll come
across terms like profit growth, margin, market share, return on capital, cost of goods sold, and earnings per share.
The CEO, CFO, and board of directors at your company are likely to insist on metrics such as ROI and return on capital
to justify spending. Return tends to be the driver for all their investment decisions. Why should your project be any
different?
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