Accenture presentation on “Value-Driven IT Performance Scorecards”

accenture.jpgAt HP Discover Las Vegas 2012, I watched Claus Rydkjaer and Jakob Kaad from Accenture deliver a presentation called Value-Driven IT Performance Scorecards today. The presentation focused on Accenture’s emerging relationship with HP on its Executive Scorecard and the value the joint relationship provides. Most of all, it showed how Accenture and HP can make IT measurement and management matter to IT and business leaders.

 

 

 

The state of the art of IT performance management

Accenture began by sharing their view of the state of IT performance management. They believe businesses increasingly have  a need for IT performance management to take the business to the next level.  The problem they find is that most IT organizations are challenged when it comes to measuring and monitoring performance management. Measurement tends to be against oneself and outdated at the time of reporting. Ideally it should provide measurements that are up-to-date, looking ahead, and comparing the performance to competitors and the relevant industry. Part of the problem is that a common performance management framework is rarely implemented across the entire IT organization, and the IT operating model is not aligned to enable proper performance management. Making things worse is the fact that most performance management happens through infrequently and manually created spreadsheets. This means the control aspect of reporting is overlooked in what becomes department-by-department reports and the window of opportunity for corrective actions may have passed by the time the reports are finally consolidated to the business-executive level.

 

Ensuring the business value of IT

According to Accenture, IT organizations need to increasingly become able to demonstrate that they are value driven. IT performance management means, therefore, that business goals and performance measures are cascaded through all organizational levels: from business executives to IT managers and to IT staff. Accenture believes this helps IT “play a bigger and more visible role in driving business success.” This is important because business and IT executives are under pressure to ensure the business value of IT. This is especially the case when CIOs need to deliver more with less while reducing operational risk.

 

Key challenges in IT performance management

Accenture claims that that alignment of an organization’s IT Operating model across 5 layers is essential to enable performance management mastery:

  • IT governance
  • Organization and roles
  • IT processes and interfaces
  • Metrics and reporting
  • Technology and data

Each has its own complexity and cost.

 

What do Accenture and HP provide together?

 

Accenture today already provides its customers with an IT Operating Model, but what has been missing is an automated tool for collectingin-period measurements so customers can manage from current data versus managing to the past. Accenture has taken the out-of-the box HP Executive Scorecard and created predefined functional KPIs across the Accenture IT Operating Model. This has included the ability to generate prebuilt executive roles and capability scorecards. Accenture is framing its persona-based scorecards against industry best practices. This way it provides a single pane of glass into IT performance that is appropriate to each and every customer.

 

In terms of value to Accenture and HP customers, Accenture can help customers determine the metrics and industry-specific insights which are the starting point of performance management. Because HP has reduced the time to value with out-of-the-box functionality and automated performance measurement and monitoring, Accenture has been able to rapidly apply its IT Operating Model and customer-specific measures. Accenture makes the HP offering a whole product through recommendations to CIOs to monitor a number of KPIs at four levels (Business Executive Scorecard, IT Balanced Scorecard, IT Capability Scorecard, and Process KPIs) with a holistic view covering all IT capabilities. This joint offering helps IT organizations to translate strategy into measures and strive for a performance-driven culture.

 

The Accenture offering will be provided in two modes: on-premise and as a service. The prebuilt standard image enables an accelerated implementation and in eight weeks a solution will be established with initial integrations and a roadmap for automating remaining data sources. This timeline is of course dependent on scope and client aspirations.

 

 

Related links:

Feature:  Peak performance demands precision control

Solution page:  IT Performance Management

Twitter: @MylesSuer

Labels: IT strategy
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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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