Running IT Like a Business – Sample Implementation Plan

1. Running IT Like a Business – Sample Implementation Plan

2. Top-down/Bottoms Up- A Data-Focused Approach - Balanced Scorecard • Top-down provides: • Mission, Vision and Value • Scorecard/dashboard for overall performance • Strategy development/communication • Strategic metrics ABM in concert with a scorecard yields significant benefits* • ABM supports improvements in operational efficiencies, whereas a scorecard supports a change in strategy • Scorecards without activity-based models rely on error-prone allocations Activity Analysis • Bottom-up provides: • Quantified activities, services, outputs • Unit & overall costs and consumption for SLAs/chargebacks • Best practices & benchmarks comparisons • Operational metrics, target costs, outsourcing comparisons and budgeting • Process maps and NVA • Process improvement initiatives and ROI • Workload/staffing rqmnts & responsibilities * North American Survey reported in CMA Management

3. Budget or Ledger View Financial Reporting, Budget Submittal, Corporate Financial Performance, Strategic Planning ABC/M View Operational Metrics, Data for Operational Management, Operational Planning, NVA, Business Case Development, Benchmarks, Balanced Scorecard, Capacity Management, Employee Tasks/ Training Requirements Example Activity Analysis Outputs Business Unit or Services View Service Level Agreements, Chargebacks, Outsourcing Studies, Best Practices, Target Costing, Profitability, Driver Based Budgeting

4. Cost Driver Analysis of Non-Value Added Activity Cost Driver Analysis allows you to develop and map process improvement and transformation ideas

5. Key Operational Performance Measures

6. Sample Format

7. Linking Top-down With Bottoms-up Top-Level Scorecard Strategic Objectives Overall Metrics/Performance • Operational Plans • Functional Scorecard • Improvement Initiatives • Costed products, services and activities Functional Area ABC/M Analyses