Beyond Numbers: Uncovering the True Value of IT

Corporate IT is a dynamic realm where expectations run high, and performance is continually scrutinized. The correlation between what we expect from IT and how we evaluate their success is undeniable. Failure to meet quantitatively gauged performance levels can have profound consequences, often linked to job security.

Quantitative is King

Let's start by emphasizing that IT accountabilities tied to quantitatively measured performance metrics receive meticulous management and oversight. These metrics primarily fall into two categories: KTLO (Keep The Lights On) and OTOB (On Time On Budget).

KTLO revolves around the pivotal role of IT operations. This unsung hero is responsible for ensuring that everything your organization purchases, leases, builds, or installs continues to function reliably and continuously. Despite its lack of innovation glamour, IT Ops is the linchpin of survival. Without it, your business's short-term viability is at risk.

Quantitative metrics define expectations for the quality, stability, and performance of IT operations from the outset, with continuous monitoring. While some failures are inevitable, their frequency or duration above agreed-upon performance levels can spark job security concerns.

The second set of performance metrics focuses on executing business change endeavors. These initiatives address evolving business needs, opportunities, or external factors. Historically, cost, schedule, and scope have been the cornerstone of project evaluation, offering a comprehensible framework for assessing IT's performance in delivering change.

However, quantifying scope—the extent of what's delivered—can be challenging due to the absence of universal measurement units in IT projects. Consequently, many lean on on-time and on-schedule delivery as comprehensible tools for performance assessment.

What's Not Measured Quantitatively is of Lesser Importance

While managing change doesn't carry the same level of urgency as IT Ops, delivery timelines and cost control remain top priorities. The challenge arises from the scarcity of quantitatively measured indicators of excellence beyond these areas. The rest of IT is either subject to non-standard qualitative evaluations or remains unmeasured.

Non-quantified evaluations are debatable and vulnerable to contextual differences, while non-standardized metrics defy easy comparison. In essence, IT gauges only a fraction of its activities, focusing on aspects where unchallengeable numbers and universally understandable units of measure exist.

It's imperative to recognize that both KTLO and OTOB primarily measure immediate and short-term performance. KTLO ensures continuous operations, while OTOB is concerned with temporary projects with distinct beginnings and ends. What transpires after project completion is often deemed irrelevant.

Value Is in Peril

However, this short-term perspective can obscure the true value of IT, impacting your organization's ability to adapt and respond to its evolving environment. Quality and the lasting impact of IT's work on your assets and readiness for change are often overshadowed.

In conclusion, while quantitative metrics play a pivotal role in corporate IT accountability, it's crucial to appreciate that IT's actual worth extends beyond immediate and short-term performance indicators. Quality and the enduring impact of IT's contributions are equally vital and merit our attention. Let's embrace a holistic approach that ensures your organization's long-term success by (a) identifying the expected outcomes beyond KTLO and OTOB and (b) measuring it. For we all know that if it's not measured, it will not improve.