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Measures of the Strategic Scorecard: Customer Orientation Scorecard

June 18, 2008

The customer orientation perspective evaluates the performance of IT from the viewpoint of internal business users (customers of IT) and, by extension the customers of the business units. It provides answers to the key questions of these stakeholders concerning IT service quality . As shown in Figure 10, the issues this perspective focuses on are competitive costs, development services performance, operational services performance, and customer satisfaction.




Customer satisfaction

  • Business unit survey ratings:

    • Cost transparency and levels

    • Service quality and responsiveness

    • Value of IT advise and support

    • Contribution to business objectives

  • Not applicable

Competitive costs

  • Attainment of unit cost targets

  • Blended labour rates

  • Compass operational ‘Top Level Performing’ levels

  • Market comparisons

Development services performance

  • Major project success scores:

    • Recorded goal attainment

    • Sponsor satisfaction ratings

    • Project governance rating

  • Not applicable

Operational services performance

  • Attainment of targeted service levels

  • Competitor comparisons

In the customer satisfaction area, the IT BSC of the merged IT organization is relying on annual interviews with key business managers. It is the intent to set up one generic survey, which can be re-used, with relevant questions that cover the topics mentioned in Figure 10.

Insight into the competitive costs area can demonstrate to the business how cost competitive the IT organization is compared to other (e.g., external) parties. This insight is realized by measuring the attainment of IT unit cost targets and the blended labour rate. This rate model provides an overall single rate for any IT professional who is appointed to the business. The competitive costs measures are benchmarked against Compass’s operational ‘Top Performing level’ and against the offerings of commercial IT service vendors (market comparisons).

Development services performance measures are project oriented using attributes such as goal attainment, sponsor satisfaction and project governance (i.e., the way the project is managed). These data are mostly captured by interviews with key managers. The most effective time to establish the basis for these (project) development measures is at the point where business cases are being prepared and projects are evaluated. Each IT project initiative will be evaluated by the IS Executive Committee in which IT and business managers determine—based on the business drivers, budget and state architecture compliance—which projects need to be executed. When a project is approved, the project manager defines clear targets for cost, schedule, quality, scope, and governance. The quantitative data (e.g., budget) are reported throughout the life cycle of the project. After completion of the project, the quantitative and qualitative data are evaluated during the major project review and the main success drivers, delivery issues and lessons learned are documented.

In terms of operational service performance, IT management measures achievement against targeted service levels. For each operational unit (e.g., data center), average response time, service availability and resolution time for incidents are rolled-up to these service performance metrics in the strategic balanced scorecard. The results are benchmarked against the performance of competitors.

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