3 ways scorecards drive value: European customers share their stories

I am at HP Discover Frankfurt this week. One of the things we do at these events is to meet with customers in order to get their advice regarding our product direction. We also get to hear about real-world issues and what customers are doing to solve them—all of which is useful information I’d like to share with readers. This week, we asked customers to tell us about the value of Balanced Scorecards and in particular the HP Executive Scorecard. Just so you know, most of the customers at the event were from the office of CIO or worked directly for the CIO. To protect the customers and their organizations, I will not identify them by name, but I’ll share the essence of what they said.

 

Telecom drives continual improvement

The first customer I talked to was from a telecom company. He said that they are going forward with Executive Scorecard because it enables the company to drive continuous improvement. It allows  them to “ensure that our processes are in compliance.” He also emphasized the importance of COBIT 5 and the notion of having shared targets with the business. “A balanced scorecard is how we can share and communicate with the business what’s going on,” he said. I never knew it but Marvin Gaye clearly had a finger in IT strategy.

 

Insurance company demonstrates value

We also heard from a customer at an insurance company. This IT leader said that his company was a “merger company.” The big objective for him was integration. He said that IT needed to demonstrate to the business that they were integrating technology and, just as important, driving up quality and thereby reducing costs. This leader used Executive Scorecard to provide transparency into all that IT was doing for itself and for the business. Stakeholders now have one view into what is going on. “We have concluded that a balanced scorecard is the mechanism to demonstrate both cost and value for IT,” this customer told us. He also said they would use the financial module of Executive Scorecard, since next year they need to reduce operational costs. This means they need to get at the revenue and costs of services, something the financial module makes possible. They also need to combine this information with satisfaction survey results and demonstrate innovation, improvement, and balancing of resources.

 

Government agency proves it’s improving

The third customer we heard from was from a government agency. This agency is going through a huge change as its baby boomer employees start retiring in mass. As a fix, they have invested significantly in IT to take future costs out and deal with their increasingly graying organization. To do this, they tripled the IT budget. But now they need to demonstrate that their project investments are actually delivering real results. Their IT corporate emphasis is quality of projects, quality of products delivered, and the quality of the enabled business processes. They also want  a way to relate the results of quality and service level management, one of the recommendations in COBIT 5. At the same time, they need to demonstrate financial transparency and for this reason are also implementing the financial module of Executive Scorecard.

 

The Executive Scorecard value proposition

We finally asked all of the customers how Executive Scorecard delivered on its value proposition. What we heard back was that it comes through in terms of automation, rationalization of licenses, reducing support cost, decreasing suppliers, and getting rid of processes that are no longer useful. Another major point was that the periodicity of data. Because you can see issues in the operating period you can drive toward goals. Finally, the group stressed the importance of cross-portfolio visibility. This allows for improvement and taking costs out by improving overall reliability and delivery consistency.

 

Please leave a comment if you have any stories you can share about using scorecards in your organization.  

 

Related links

Solution page:  IT Performance Management

Twitter: @MylesSuer

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About the Author
Mr. Suer is a senior manager for IT Performance Management. Prior to this role, Mr. Suer headed IT Performance Management Analytics Product ...


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