IT Metrics Introduction – CIO to CIO

One question that is always at the forefront on the minds of CIOs is what metrics to present to the business that is relevant. IT executives, generally have a tendency to present a vast array of data-most of which are irrelevant to business executives. The secret is presenting only a few key metrics.

Most IT metrics tend to be IT-centric and operationally focused on underlying technologies, such as WAN availability or server downtime. It is difficult for business execs to understand these measures and provide little insight into the value that IT delivers. As a result, the business typically focuses on the one metric that they understand — the cost of IT and how to reduce it — and this leads to a continuous cycle of cost reductions and the continuous statement that IT is only a cost center.

There really are a few metrics that make sense to present:

1. IT Investment Value – Present the value of IT investments by looking at the cumulative return of the entire portfolio

2. IT Spend – New investments versus operational spending

3. Service Availability – IT performance compared against service-level agreements

2 thoughts on “IT Metrics Introduction – CIO to CIO

  1. Arun: One other thought on portfolio value measurement. Success Metrics for individual projects should be established prior to implementation and then measured and reported for some period after go-live. While this is a bit more micro level, it can feed into your #1 metric of return on portfolio.

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