Measuring IT Performance and Communicating Value

Authors

Sabyasachi Mitra, Georgia Institute of TechnologyFollow
V. Sambamurthy, Michigan State UniversityFollow
George Westerman, Massachusetts Institute of TechnologyFollow

Abstract

CIOs need effective approaches for measuring, monitoring, and communicating performance about the management and use of information technology in their firms. Traditional IT metrics such as IT budgets or IT spending as a percentage of revenue can foster a focus on reducing IT costs rather than emphasizing the business value of IT investments, their role in improving business processes, and their ability to enable business innovation. Based on interviews with CIOs and other senior managers from 23 organizations, we present a framework to guide CIOs in using IT, business process, and business unit metrics for communicating with CEOs, other senior business executives, and their own direct reports. Case examples are provided for five multi-metric domains that emerged from our data analysis. We also provide guidelines for how CIOs can develop a portfolio of measures that matter to business leaders and then evolve them to improve the value that IT brings to the overall organization.

Recommended Citation

Mitra, Sabyasachi; Sambamurthy, V.; and Westerman, George (2011) "Measuring IT Performance and Communicating Value," MIS Quarterly Executive: Vol. 10: Iss. 1, Article 6.
Available at: https://aisel.aisnet.org/misqe/vol10/iss1/6