The Metrics That Matter in Corporate IT

In the world of corporate IT, performance metrics play a pivotal role in shaping outcomes. There's a direct link between our expectations of IT and how we gauge their success. When those expectations are tied to quantitative metrics, the results are clear—what gets measured gets managed.

Two primary categories dominate the landscape of quantitatively measured performance objectives: KTLO (Keep The Lights On) and OTOB (On Time On Budget).

KTLO revolves around the bedrock of IT operations. It's the unsung hero that ensures what's working continues working, uninterrupted. While it may lack the glitz of innovation, it's the linchpin of survival. Without operational continuity, an organization's services to customers and partners grind to a halt.

Quality, stability, and performance in IT Ops are quantitatively defined from the outset, and they're scrutinized relentlessly. Deviations from agreed-upon performance levels can send shockwaves through job security.

OTOB, on the other hand, focuses on the execution of business change endeavors. These initiatives are launched in response to evolving business needs, opportunities, or external forces. The traditional evaluation of cost, schedule, and scope often guides these projects, making them comprehensible to business leaders.

However, quantifying scope—the extent of what's delivered—can be a challenge. Unlike costs and schedules, there are no universal units to measure scope in IT projects. As a result, many rely on on-time and on-schedule delivery as understandable tools for assessing IT's performance in delivering change.

While managing change isn't as critical as IT Ops, delivery dates and cost management remain closely monitored.

But here's the rub: beyond KTLO and OTOB, few other aspects of IT are quantitatively measured. The rest either undergoes non-standard qualitative evaluations or remains unmeasured. Non-quantified assessments can be debated due to contextual differences, while non-standardized metrics are challenging to compare.

In essence, IT often focuses on improving only a fraction of its work where quantifiable numbers with universally understandable units of measure exist. The rest often relies on good intentions or perceived impact on OTOB or KTLO.

Both KLTO and OTOB gauge immediate and short-term performance, but the long-term consequences often go overlooked. Continuous short-term priorities veil the lasting impact of IT's work on an organization, affecting quality and assets. The quality of work done directly influences asset quality, which, in turn, affects an organization's ability to adapt and respond to environmental changes.

Quantitative measurement in IT is a powerful tool, but it's essential to remember that the true value of IT extends beyond immediate and short-term performance metrics. Quality and lasting impact are equally critical aspects that deserve our attention.