"What is driving the specific focus on performance improvement?”
The quest for performance improvement is a continuing one for all organisational units – “standing still” is not an option. For IT the call for performance improvement often begins with a request to clarify and make transparent its cost base – to show how its cost drivers relate to those of the business it is a part of. Competitive cost pressures drive corporate cost effectiveness programmes and result in wholesale operational cost reduction targets. During these drives IT’s performance is still expected to deliver and even improve on services measured by service level agreements.
The CIO or Head of IT Operations begins to realise that the Organisation’s IT is a business in its own right, compared to others in the external market through performance bench marks, yet with a defined, closed market and less room for manouvre. Nevertheless, the only dialogue to establish with the Business, in order to really improve performance without compromising the Organisation’s responsiveness and operational capabilities is on the basis of IT as a business, with its own balance sheet and performance measures, negotiated with its “customers” – in the same way that any outsourced IT service provider would do.
The JGA team comprises experienced IT managers who have worked within IT divisions and directly for IT supplier organisations. We bring a wealth of experience in focusing IT on a common agenda with the Business and then defining how its services should be developed and measured - establishing realistic, appropriate service levels.
The fundamentals of Performance Improvement
- A clear, accurate cost base for IT operations
- Well defined IT services – a catalogue of IT services that the Business relates to
- Internal IT financial management processes and reporting that show a clear understanding of how IT uses its assets and resources in delivering its catalogue of services.
- Transparent cost allocation processes and mechanisms that link business cost drivers to IT service costs
- Well defined business cases, for any cost efficiency initiatives, that project from the cost base to avoid “false” cost reduction, i.e., to take initiatives where the target reductions are real and sustainable.
