Trends in IT Performance Management

A total of 99 executives from around the world took part in a global ITpreneurs research on IT Performance Management.

IT executives and senior IT consultants provided their view on the relevance of IT performance management, their current maturity level, important bottlenecks and success factors for managing performance in an It organization. Here are the key findings:

Nothing has changed; IT is still considered a black box

For over two-thirds of organizations, IT is considered a black box. Systems are complex and heterogeneous. CIOs don’t manage to get the right information for decision making and end up reacting to crises rather than preventing them.

IT Performance Management is becoming more important

Partly because of this, most organizations see IT performance management positively and they recognize the necessity to put in place programs to better manage IT performance. There has been a definite increase in interest in this subject over the past three years.

Cost control, Compliance and Value creation are the primary drivers for instituting IT Performance Management programs

Cost control: The IT budget is being increasingly scrutinized and everything possible is done to be able to reduce costs.
Compliance with regulations: New laws, such as Sarbanes Oxley and Basel II, have been promulgated and are forcing organizations to become more transparent.
Value demonstration: As organizations are becoming more mature, they have come to realize the need for having an IT organization that is performing well to create value and stay competitive.

Implementing IT Performance management appears to be challenging

Even though IT performance management is seen as relevant, many participants recognize that it is still difficult to implement effective performance management in practice. One in two IT managers finds the lack of clarity over what to measure, as well as the lack of knowledge on how to implement these programs to be the main challenges.

In addition, 72% of the interviewees find that having a framework in place such as COBIT™ or ITIL® to provide guidance on the implementation is the main success factor. Results show that organizations are still immature in terms of managing their IT performance. On a scale from 1 to 5, the majority of organizations are between level 2 and 3. Finally, only 6% of organizations can say that they have a holistic picture of the overall performance of their IT organization. The use of manual reporting, such as Microsoft Excel, is still predominant and a significant amount of time is spent on consolidating information and reports into one view.

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Only 6% of IT Managers have a comprehensive view on IT Performance

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Being able to do benchmarking is considered as very important for IT managers (73%)

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