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Make a Radical Improvement
The Current Status of IT Measurements: Most IT departments either make
no attempt to measure their value or, if they do, they invent methods that are not
based on proven scientific methods and not proven to improve decisions. If
“intangibles” are considered at all, they are merely a subjective “weighted score.”
Standard business cases for IT projects are, at best, simple accounting exercises
with no way to measure risk statistically.
The Ideal Plan: A solution exists so that IT can measure risk like
an actuary, value like an economist, and portfolio optimization like a financial
analyst.
How Close Are You Now to the Ideal Plan? Take This Quiz to Find Out
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Measurement Maturity Area
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Maturity Category
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How do you compute the value of “intangibles” in IT?
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- Intangibles are converted into monetary values with proven economic models.
- Intangibles are considered with subjective score or “high/medium/low”
categories.
- No attempt is made to consider intangibles in business cases.
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How do you compute the business uncertainty and risk of IT projects?
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- Risk is measured like an actuary would measure it, with statistically sound, quantitative
methods.
- Risk is assessed with subjective score or “high/medium/low” categories.
- No attempt is made to quantify risk.
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How do you prioritize IT projects?
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- A statistical method optimizes portfolios based on factors that are proven to
correlate with project success.
- Subjective weighted scores and/or voting methods are used.
- The loudest managers get project approval.
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How do you use metrics?
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- Metrics are chosen by computing the economic value of decisions. The procedure
is based on scientific methods of observation.
- Some metrics are tracked. They tend to be what you know how to measure,
not what should be measured. They rarely influence decisions.
- There are no metrics in IT.
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Measurement cultures in IT generally fall into one of three categories:
- Measurements are scientifically-sound, chosen by their economic value to decisions,
and based on methods proven to improve decisions.
- Measurements are attempted, but not scientifically (perhaps subjective “weighted
scores”), and are not proven to improve decision making. In fact, it might
not necessarily be better than no measurements at all.
- No attempt is made to measure.
Chances are you have a combination of “B”s and “C”s, but no “A”s. Even organizations
that have attempted to move from “no metrics” to “some metrics” have developed approaches
which are not proven to support better decision making. In effect, most attempts
at metrics have a type of “placebo effect.” The organization may feel that
progress is being made, but there is no scientific evidence that decisions are better
because of it.
The only solution is to make the leap to proven methods. And the best way
to start that process is with TACometer.
TACometer Objectives
The Training: Your staff will receive intensive training in the best and
measurably proven decision analysis, risk analysis, and performance metrics methods.
The training material is designed for any analyst to C-level person who has responsibility
for creating, reviewing or acting on business cases or performance metrics. The
training includes:
- Why many of the most popular analysis methods in IT, when measured scientifically,
have shown little more than a “placebo effect.”
- How to measure the things often believed to be “intangible” in IT by using quantitative
methods that focus on observations, even where very little data exists.
- How to understand risk, uncertainty and the value of information in a quantitative
but practical way. How simulations enable you to “do the math” when you have no
exact numbers — only ranges and probabilities.
- How to apply the methods to practical situations.
The Audit: We will advise your organization on next steps for implementing
these tools, including identifying candidates for pilot projects, identifying participants
and proposing a plan of action. An emphasis will be placed on identifying areas
where improvements could make a big difference.
The Plan: The plan will describe a “highest payoff first” approach to improving
portfolio management, risk management, performance metrics, and IT business cases.
Benefits
Your staff will be armed with knowledge of methods that have the most evidence of
improve decision performance. High-value opportunities for improvement will be identified
in the audit, and the plan will show how to implement them in a way that starts
generating early benefits of better decisions in risk management, portfolio management,
performance metrics and business cases.
Logistics
- Three-day facilitated session at client site
- Client-specific off-site preparation and follow-up
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