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Introduction

Balanced scorecards provide a means of collaboratively defining objectives for the IT function that align with strategic organizational objectives, and a way of measuring and reporting ongoing results from those activities to stakeholders.

Highlights

  • Balanced scorecards enable a broader and less short-term view of organizational performance than is provided by financial metrics – organizations cannot use common financial metrics as a map to navigate into the future.
  • Defining balanced scorecards across the organization, with key objectives that align across all areas of the business, can help to ensure that diverse areas are “pulling in the same direction.” Focus areas for IT "map" onto equivalent areas of the organizational balanced scorecard.
  • Although widespread across the total population of organizations, current adoption of balanced scorecards tends not to achieve significant depth within most organizational structures, thereby failing to deliver all the benefits that are possible.

Features and Benefits

  • Learn how the benefits of using balanced scorecards can extend widely across the organization, extending visibility of its alignment.
  • The report evaluates the use of many types of KPIs and metrics that might be used to monitor the organization.
  • Identifies how to weight the contribution of individual metrics to a total score within a balanced scorecard.
  • Assesses the potential overall benefits, to the organization as a whole, of using balanced scorecards

Key questions answered

  • What business priorities and drivers do balanced scorecards address – i.e. what is the need to start using them?
  • How can my organization use balanced scorecards to achieve alignment between business priorities and its IT function?
  • What factors should my organization take into account in choosing metrics within its balanced scorecards?
  • My organization already uses balanced scorecards, but in a small way – how should we look to extend their benefit?

Table of contents

Summary

  • Catalyst
  • Ovum view
  • Key messages

Recommendations

  • Recommendations for enterprises

Share organizational understanding of balanced scorecard fundamentals

  • Many organizations already use balanced scorecards
  • Balanced scorecards enable strategic focus across diverse underlying activities

Use balanced scorecards to align organizational and IT objectives

  • Promote IT alignment with organizational objectives
  • Maintain organizational alignment across IT functions
  • Point scorecard implementations can be the foundation of broader adoption

Choosing KPIs and metrics well is critical to success

  • A balance of metric types should be achieved
  • Consider good practice relating to choice of metrics
  • Cultural changes may arise from the use of balanced scorecards

Appendix

  • Further reading
  • Author

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