Major manufacturer sees Executive Scorecard as enabling reduction of project cost

For several years, I have been sharing HP Executive Scorecard with our customers. Usually, discussions with customers focus on continual improvement, creating improved IT predictability or, even better, business transformation. During a recent customer visit, the discussion covered those topics, but for the first time, the conversation also focused on direct cost reduction for the company’s project management office.

 

The customer was looking to reduce PMO costs for two reasons. First, the customer had recently moved from a divisional PMO to a global PMO model. This meant that reporting needed to roll up across divisional PMOs. As a part of this change, the organization wanted to ensure uniformity of operations across performing organizations—especially as they moved project performance closer to the divisions and their multi-country operations. At the same time, the company was establishing an enterprise architecture function to provide better uniformity across diverse divisional performers.

 

The job of ensuring uniformity across divisions was a mixture of “Excel Kung Fu” and the creation of an enterprise data store. The latter was a good step, but users were being supported with hundreds of customized dashboards. The customer, at this point, asked me what I would call its mixture of “Excel Kung Fu” and customized dashboards. The PMO leader chimed in, “A building filled with administrative assistants.” Part of the reason that it took so many people to roll up this data was that the organization operated on a monthly reporting cycle. Think about it: A monthly reporting cycle across divisions takes almost a month to support.

 

With this, I was asked to explain why the customer should move to Executive Scorecard. I started by asking, “What is the value of real-time information? What is the value of being able to make changes in the operating period?” The customer said, “Huge!” I then asked, “What is the value of being able to do what Tom Peters famously called ‘management by walking around’?” In this case, I was talking about using a connected iPad to bring management data into any meeting. Lastly, I asked, “What is the value of holding managers accountable and having a performance-driven culture?” I personally believe that when this change filters through IT organizations, it will be the most significant change achievable—it is the dawn of the analytic CIO.

 

So while cost reduction may have been the initial focus for the conversation—and automation will take out cost—in the end, the focus came back to how IT demonstrates value. The customer said that proving IT’s value is a big focus, and an an area in which IT needed to improve. At that point, I shared how another HP customer, Lubrizol, used Executive Scorecard to change its dialogue with the customer. This was exciting to them.

 

Related links: Why keeping score in baseball and IT is more than a single-inning affair!

The CIO’s game-changing skill: bridging IT and business data

Lubrizol IT makes a difference by changing its discussion with the business

Solution page: IT Executive Scorecard

Twitter: @MylesSuer

Labels: PPM
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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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