Transcript IT Optimization Scoping Workshop

Building an Effective IT Performance
Management Program for DOE Labs
Andy Schneider
November 6, 2003
research
consulting
measurement
community
news
Objectives

Comprehend the benefits of IT performance measurement

Understand the compelling need for performance management

Comprehend the critical success factors of an IT Performance Management
Program

Know the components of a viable IT Performance Management Program

Understand how to start building a successful IT Performance Management
Program within your Department/Agency
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 1
x
Why Measure?
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 2
Common Public Sector CIO Issues

Capital planning process / Foundation for Solid Business Case Analysis

IT budget reallocation

Allocating scarce resources ($, people, tools, etc.)

Outsourcing / A-76

Seat management target analysis

Demonstrating value to end user constituency

Satisfying mission / customer needs

Legislative compliance (GPRA, ITMRA, PMA, etc.)

Communicating the Value of Support Services and Infrastructure
Measurement can help all these issues
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 3
Shaping Forces Impacting US Federal Government IT
Agency Parameters
- CIO memos
- Functional IT strongholds
- Organization
- Separate IT policy and O&M orgs
- Fragmented IT $ visibility
Legislative Mandates
- GPRA
- Clinger-Cohen Act
- GPEA
- IT Accessibility
- Privacy Act
Fed Gov’t
IT
Executive Office Mandates
- PMA
- PDD 63
- OMB Circular A-76
- OMB Circular A-130
Building an Effective IT Performance
Management Program for DOE Labs
Fiscal Pressures from
reallocation of funds for
Homeland Security and
Iraq War
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 4
Top-ten 2003 CIO management priorities
TOP-TEN CIO
MANAGEMENT PRIORITIES,
2003
Average weighted score (10 = max)
1
2
3
4
5
6
7
8
9
10
Ranking in previous
surveys
2003
2002 2006
Forecast
2003
Non-Govt
2
1
2
-
9
4
4
4
7
7
3
12
Providing leadership and guidance for the
board/executive
1
Improving IT governance
2
Develop/enhancing IT architectures
3
Tightening security and privacy safeguards
4
Demonstrating business value of IS/IT
5
5
2
3
6
5
8
6
7
3
5
8
1
6
5
11
7
1
-
16
13
Strengthening program/project prioritization
and management
Developing leadership and behavioral
competencies in the IS senior
management team
Strategizing for IS/business linkage
8
Reducing total IT costs
9
Improving business continuity
planning/readiness
10




  Indicates direction of selected changes in ranking compared with 2002
1
Indicates ranking. Top-three highlighted
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 5
Strategic Planning Assumptions

Through 2003, IS organizations can expect 0 percent head count growth in
operations. (0.8 probability)

Through 2003, enterprises that align IT services with business value will be 50
percent more successful in the rebound economy’s competitive IT ramp-up than
enterprises that focus solely on workforce reduction. (0.8 probability)

Through 2006, IS organizations that define standards for IT infrastructure
selection, configuration and deployment will improve time to deployment by 30
percent, increase availability by 10 percent and reduce operations costs by 20
percent. (0.8 probability)

Enterprises that initiate IT life cycle asset management will experience a
reduction in costs of up to 30 percent per asset during the first year. (0.8
probability)
Those
that continue to practice life cycle asset management will yield an
additional reduction in annual costs of 5 percent to 10 percent per asset through
2006. (0.7 probability)
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 6
Strategic Planning Assumptions

Through 2005, IS organizations that fail to measure and report IS
performance in terms of business effectiveness and user satisfaction will
continue to be viewed as business expenses, and will not be seen as
contributors to business success. (0.8 probability)

Through 2006, 80 percent of infrastructure efficiency improvements will be a
direct result of IT infrastructure management processes, with only 20 percent
based on the technology. (0.9 probability)

By 2007, IS organizations that do not shift to a service provider model will
suffer at least a 50 percent drop in budget responsibility and control. (0.6
probability)
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 7
Benefits of IT Measurement
IT-Business
Transformation
Service Level
Agreements
Value,
Complexity,
and Cost
Leveraged
Best Practices
Mission
Focus
IT Investment
BCAs
IT
Focus
Legislative
Compliance
Strategic
Planning
Customer
Satisfaction
Budget
Planning
Integration
Agility
Alignment
Efficiency
Building an Effective IT Performance
Management Program for DOE Labs
Effectiveness
Higher Levels of IT - Business Alignment and
Performance Management Maturity
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 8
Benefits of IT Measurement

Alignment with business to maximize the value of IT to the enterprise
 Custom IT measurement programs that the business cares about
 Continuous improvement of IT by measuring:
Total cost of ownership
 Cost vs. Performance trade-offs
 Customer satisfaction
 Legacy and new technologies
 Management practices and processes
 Infrastructure and service components
 Organization and staffing
Internal vs. External comparisons


... if you can’t measure IT,
you can’t manage IT.
Building an Effective IT Performance
Management Program for DOE Labs
Level 1: Basic Providing essential
services only
Level 3: Planned Tactical planning of
the environment
Level 5: Integrated - Tactical
& strategic planning with Lines
of Business
Level 2:
Responsive Keeping up with
changes
Level 4: Aligned Tactical planning with
Lines of Business
#1
#2
#3
#4
#5
#6
#7
#8
#9
#10
DBA
Procurement
2.5
3.1
1.8
2.6
1.9
1.9
2.7
2.2
2.1
1.9
2.8
HW Track
3.3
3.3
2.4
3.9
3.4
2.8
3.5
2.7
2.7
2.5
3.0
SW Track
3.8
3.6
1.5
3.0
1.4
1.5
2.4
1.9
1.9
2.4
2.7
Help Desk
2.5
2.2
1.7
1.6
1.3
1.6
2.4
2.1
-
2.0
2.6
Chargeback
NA
NA
NA
NA
NA
1.6
NA
NA
NA
NA
2.5
SLA’s
-
-
-
-
-
1.5
2.0
-
NA
-
2.2
End User
Training
-
2.4
1.8
1.6
-
1.8
2.0
2.6
-
2.1
2.3
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 9
Creating an ITx Performance
Management Program
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 10
Measurement Systems Evolve:
Integrated Performance Management
What’s wrong with many IT measurement systems?

Industrial Age metrics for the Information Age

They do not link to business objectives or increasing shareholder value

Output measurements do not tell you how to improve

Metrics do not identify or clarify issues driving current performance

Retrospective measurements expose symptoms, not causes

Business management and individuals cannot relate to metrics

Lack of a balance exists between leading and lagging indicators

The system reflects an absence of external comparisons and an outward
customer focus

An inability to communicate value of service and a strategic direction exists
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 11
IT Performance Management Program Objectives

Improve management of IT investment decisions

Maximize IT contribution to the mission

Leverage best practices across the enterprise

Demonstrate value of IT to the Agency mission

Effect change within the Agency culture

Assess Application of Resources and Adjust as Appropriate
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 12
Gartner’s Performance Management Vision

Optimized capabilities are required


Corporate-wide visibility must be achieved


In order to achieve optimization, a comprehensive understanding of information technology
services required versus services delivered is required. Furthermore, a strong linkage
between corporate goals and objectives and information technology must be created.
Continual improvement must be proactive rather than reactive


To achieve and maintain industry superiority, Information Technology (IT) must provide
capabilities that are optimized in terms of effectiveness, maintainability, availability, reliability,
integrity, affordability, and security.
For information technology to support corporate goals and enable new capabilities, IT
optimization must be addressed proactively rather than reactively. This requires a repetitive,
life-cycle approach so that critical trends can be identified and “just in time” services provided.
An IT Performance Management Program is required

An IT Performance Management Program will enable proactive optimization though the use of
standard tools and methodologies aimed at improving information technology and thereby
providing for the maintenance of industry superiority.
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 13
Technology Management—A Lifecycle View
Strategic Planning
Influences
Portfolio
Performance
Management
Drives
IT Management
Processes
Improved by
Information
Technology
Investment
Management
Supported by
Enterprise
Architecture
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 14
Components of an IT Performance Management Program

IT Performance Management Project Office Charter – A charter document for
the Agency that defines the purpose and goals of the project office.

Project Office Staffing – A document that identifies the organizational placement
and staffing levels of the project office, as well as the roles and responsibilities of
the project office staff.

Communication Plan – Meet with your Agency Public Affairs Office to jointly
develop a communications plan that incorporates four elements: thematic
messages, target audience definition, message dissemination media, and timing for
message dissemination.

Training and Knowledge Transfer – Identify the training needs for the Agency to
ensure that identified Agency staff will have the sufficient knowledge to collect,
analyze, and report on the selected performance metrics.

Metrics Data Collection and Reporting Process – A plan that recommends the
frequency of collecting, analyzing and reporting performance metrics, as well as the
frequency of conducting an external peer comparison. This plan should also
recommend how the reporting process fits into the existing Agency governance
structure.
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 15
IT Performance Management Program Critical Success
Factors

Business Unit buy-in and participation – User community must drive linkage to
Agency tactical and strategic objectives.

Project Office oversight - A project office function must be established to
communicate objectives, maintain standards, and ensure the overall success of the IT
performance management program.

Subject Matter Expertise - Subject matter expertise in the collection, refinement,
validation, and analysis of performance management data must be acquired or developed
in-house.

Success stories - Identify and communicate practical examples of how the continual
improvement concepts of IT performance management benefits the Agency.

Proven tools and methodologies - Maintain a standard set of tools, benchmark
databases, and methodologies for IT performance management in order to ensure the
credibility of analysis results and the program as a whole.

Data Repositories - Reliable repositories of IT performance management data must be
identified or developed. The types of repositories required include: hardware, software
and facility assets; user demographics; site complexity; staffing; and IT service levels
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 16
Shared Services
Strategic Sourcing—Three Types of Relationships
Competitive
Advantage
Business Value
Transformation
EffectivenessFocused
EfficiencyFocused
Enhancement
Utility
Relationship Complexity
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 17
Shared Services
How Can We Measure Fulfillment?
Utility
Enhancement
Transformation
Alignment
and Vision
Cost savings—
speed to steady
state
Speed to achieve
capability and fitness for
purpose
Speed to achieve
new business
models
Contract and
Measurement
Contract team,
SLAs
Process teams, process
metrics
Executive team,
business metrics
Business users’
achievement of
service levels
Business management,
improved business
productivity
Executive mgmt.,
competitive
advantage
Availability,
reliability,
performance
End-to-end availability of
processes and business
outcomes
Achieving business
objectives
Customer
Satisfaction
Price and
Service
Levels
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 18
IT Performance Management Critical Success Factors

Recruit an executive sponsor before you start

Eliminate old metrics that are not linked or don’t add value

Integrate key performance indicators into your performance evaluation system

Build key performance indicators through consensus - do not use them as a
weapon

Build the IT performance management mountain

Make key performance indicators simple, intuitively obvious and focused on
goals

Develop key performance indicators with balance and the big picture in mind.

Make certain those who are affected by the key performance indicators can
influence their outcomes.

Be prepared to change key performance indicators based on enterprise
evolution.
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 19
Suggested Next Steps

DOE Lab CIOs to discuss the merits of conducting a Lab-wide measurement
engagement

To date - DOE benchmarking has been tactical and sporadic

Gartner to develop a white paper outlining the approach, methodology, and
sample outputs

Appoint a Lead (Lab?) for this major imperative
Building an Effective IT Performance
Management Program for DOE Labs
For internal use of DOE only.
© 2002 Gartner, Inc.
All Rights Reserved.
Page 20
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