Investment/Program
Management Maturity Model
12/22/14
© 2014
Amit Mitra and Larissa Zhurakovskaya
Evolution of Program Management Maturity
MATURITY OF PROGRAM GOVERNANCE
Level 1
(Initial)
•Ad-hoc IT spending
•Undisciplined
investment process
Level 2
(Repeatable)
Build the
Investment
Foundation
Level 3
(Defined)
Develop a complete
investment portfolio,
based on support for
business strategy
Level 4
(Managed)
Improve portfolio
performance; triage
high risk or low
value investments
Level 5
(Optimizing)
Leverage IT for
strategic outcomes;
align IT spending with
business strategy
CAPABILITY LEVEL 2
Building the Investment Foundation
LEVEL 2 ANALYSIS HIERARCHY
Process Capability
GOALS OF KEY PROCESS AREAS (KPAs)
CREATE INVESTMENT BOARD
Purpose:
• Define and establish capacity building investment management
processes for selecting, controlling, and evaluating IT & other
investments
MEET BUSINESS NEEDS
Purpose:
•Ensure that IT/support services and data support organization’s
business needs and meets user’s needs
SELECT INVESTMENTS
Purpose:
• Ensure a well defined and disciplined process is used to select
new IT/support proposals and reselect ongoing investment
PROVIDE INVESTMENT OVERSIGHT
Purpose:
• Review progress of investment with predefined criteria and
checkpoints in meeting cost, schedule, risk and benefit
expectations; take corrective action when these expectations
aren’t met
CAPTURE INVESTMENT INFORMATION
Purpose:
•Make information to evaluate impacts and opportunities created
by continuing capability building investments available to
decision makers
CAPABILITY LEVEL 2
Building the Investment Foundation
INSTITUTIONALIZING CREATE INVESTMENT BOARD
CREATE INVESTMENT BOARD
Purpose:
Define and establish capacity building
investment management processes for
selecting, controlling, and evaluating
IT & other investments
Ensure buy-in from senior executives and users representing various departments
Involve in all high cost and high risk investments
Commitment
Set up an enterprise wide
IT/support service investment
board
Senior executives from IT, support & business units, including CIO
Responsible for defining Investment Board’s structure and accompanying processes
Responsible for implementing the processes defined
Ultimate responsibilities for lower level investment boards
Roles of key boards
Document IT/support service
investment process directing
each investment board’s
operations
Provide process guidance
Working groups
Individuals involved in investment process
Procedures for assigning responsibility for decision making for investment proposals
Institutionalization
CAPABILITY LEVEL 2
Building the Investment Foundation
INSTITUTIONALIZING CREATE INVESTMENT BOARD
CREATE INVESTMENT BOARD
Purpose:
Define and establish capacity building
investment management processes for
selecting, controlling, and evaluating
IT & other investments
Prerequisites
People
Funding
Provide adequate resources for supporting operations of each
investment board
Tools
Investment board’s policies and procedures
Provide adequate
training
Economic evaluation
Tools and Techniques used
Capital budgeting methods with focus on Agility
Performance measurement strategies
Risk management approaches
Cost
Benefit
Span of authority and
responsibilities defined for each
board to avoid overlaps and gaps
Define Criteria
Schedule
Risk thresholds
Number of users affected
Function of Business unit
KPA
Execution
(activities)
Life cycle phase of the investment
CAPABILITY LEVEL 2
Building the Investment Foundation
CREATE INVESTMENT BOARD ACTIVITIES
CREATE INVESTMENT
BOARD
KPA
Purpose:
Define and establish capacity execution
building investment
(activities)
management processes for
selecting, controlling, and
evaluating IT & other
investments
Board’s work
processes
Decision making processes
Enterprise investment board has oversight
responsibilities for development and
maintenance of organization’s documented
IT/support service investment process
Always reflect current board
structure and processes followed
Selection
Control
Processes to manage investments
Evaluation
IT/Support Service
Investments
IT/Support Services Investments
may include investments into
specific infrastructure,
technology, data or services,
change/innovation in the
business process or
change/innovation in any
supporting processes, such as
workforce management and
contracting
Each investment board operates in accordance
with its assigned authority and responsibility
Establish management controls to ensure
investment board’s decision’s are carried out
Document relationship between upper
management and investment board
CAPABILITY LEVEL 2
Building the Investment Foundation
INSTITUTIONALIZING MEET BUSINESS NEEDS
MEET BUSINESS NEEDS
Purpose:
Ensure that IT/support services and data
support organization’s business needs
and meets user’s needs
Link to the business planning process
Business needs stated functionally or as
required business improvements
Meet organization’s EA and established
security standard
Commitment
Document policies and procedures for
identifying IT/supporting services/data
that support business needs
Possible termination of projects not
supporting identified business need
Reconcile similar needs within different
operating units
Review business need alignment regularly as
part of strategic planning cycle
Document organization’s business mission with stated
goals and objectives
Prerequisites
Funding
Management attention
Adequate resources made available
KPA
Execution
(activities)
Executive sponsorship
People with right skills
Requirement Management
Tools
Business Process Reengineering
Repository
CAPABILITY LEVEL 2
Building the Investment Foundation
MEET BUSINESS NEEDS ACTIVITIES
MEET BUSINESS NEEDS
Purpose:
Ensure that IT/support services KPA
execution
and data support
organization’s business needs (activities)
and meets user’s needs
Business case for each project with
option for opportunistic investment
Define and document business needs for both proposed and ongoing
IT/supporting services/data
Specific users and other beneficiaries are identified
for each IT/ supporting service/data set
Directly or indirectly link each service or
data set to at least one of the organization’s
business needs or mission goals
Develop business case
Users participation in project management
throughout an IT/supporting project’s or service’s
life cycle
Test user acceptance
Operation analysis of the
system
Document benefits realized
by system implementation
Project’s outcomes and its value
in comparison with expectations
Risk and volatility of the
project
Review alignment of
IT/supporting services & data
with strategic goals &
objectives
Periodic evaluation by Investment
board
Take appropriate corrective
action
Realign project
objectives
Hold the project
Defer the project
Power down the project
Terminate project
CAPABILITY LEVEL 2
Building the Investment Foundation
INSTITUTIONALIZING SELECT INVESTMENTS AND ACTIVITIES
SELECT INVESTMENTS
Purpose:
•Ensure a well defined and disciplined
process is used to select new IT/support
proposals and reselect ongoing
investment
Commitment
Cost
Selection criteria
Benefit
Document policies and
procedures for selecting
new investment proposals
Roles and responsibilities for project selection process
Schedule
Risks
Inputs required for proposal evaluations
Success in meeting investment outcomes
Document policies and procedures for
reselecting ongoing investments
Inputs required for reselections
Document policies and procedures for integrating
funding with process of selecting an investment
Make available adequate resources
Funding
Management attention
People with right skills
Tools, Methods
Investment Size
Prerequisites
Establish criteria for analyzing,
prioritizing and selecting new
investment opportunities
Establish criteria for
analyzing, prioritizing and reselecting new investment
opportunities
Project longevity
Technical difficulty
Technical
Quality
Project risk
Project performance
Business impact
Organizational
Customer needs**
External
Cost Benefit analysis
Ensure that the criteria continue to
reflect organizational objectives
KPA
Execution
(activities)
Organization impact
Expected improvement
Organization uses defined selection process, including predefined selection criteria, to select new investments
Organization uses defined selection process, including predefined
selection criteria, to reselect ongoing investments
Executive’s funding decisions are aligned with selection decision
CAPABILITY LEVEL 2
Building the Investment Foundation
INSTITUTIONALIZING PROVIDE INVESTMENT OVERSIGHT
PROVIDE INVESTMENT
OVERSIGHT
Purpose:
•Review progress of investment with
predefined criteria and checkpoints in
meeting cost, schedule, risk and benefit
expectations; take corrective action
when these expectations aren’t met
Commitment
Each investment board’s
responsibilities when providing
investment oversight within its
domain
Document policies &procedures for
IT/supporting services/data
management oversight
Cost Performance (e.g.
<10% Cost overruns)
Procedural rules for the
investment board’s operation
and for decision making during
project oversight
Schedule Performance (e.g.
<5% schedule overrun)
Scope Management (e.g.
Meeting all critical
requirements)
Threshold criteria that
investment board uses when
analyzing project performance
Product conformance (e.g.
no critical defects, no more
than 2 High defects)
Corrective actions taken when
project varies significantly
from project management plan
Process conformance (e.g.
no major process nonconformance open)
Changes to project’s commitment
made with involvement of affected
groups
Management and staff for monitoring services/data
Adequate resources made available
Tools, such as project summary report and decision
support applications
Prerequisites
Approved Project Management plan for all
projects including operations and maintenance
projects
Project decision and assumptions
Project cost and schedule
expectations
Milestone based accomplishments
expectations
KPA
Execution
(activities)
CAPABILITY LEVEL 2
Building the Investment Foundation
PROVIDE INVESTMENT OVERSIGHT ACTIVITES
PROVIDE INVESTMENT
KPA
OVERSIGHT
Purpose:
execution
•Review progress of
(activities)
investment with predefined
criteria and checkpoints in
meeting cost, schedule, risk
and benefit expectations; take
corrective action when these
expectations aren’t met
Cost
Schedule
Data on actual performance
provided to appropriate
IT/supporting services investment
board
Benefits (Expected benefits for project sunder development
Risks
System functionality
Review at least at major cycle milestone for each project
Manage to align with business needs
Compare estimated schedule time frames to actual schedules
Investment board regularly
reviews performance of
IT/supporting services and
data against expectations
Compare estimated costs to actual funds
spent and any changes in funding
Corrective actions reviewed by QA group or independent audit groups
Technical
Should address development approach
Take corrective actions for underperforming projects based on defined
criteria and documented policies
Benefits
Risk related issues
Senior executive support for
identifying and raising the issues
Execute and track corrective actions until desired outcome occurs
Investment board regularly track
corrective actions for each
underperforming projects
If corrective actions significant, conduct independent reviews to ensure
intended results are achieved or if additional changes are still needed
CAPABILITY LEVEL 2
Building the Investment Foundation
INSTITUTIONALIZING CAPTURE INVESTMENT INFORMATION
CAPTURE INVESTMENT
INFORMATION
Purpose:
•Make information to evaluate impacts
and opportunities created by continuing
capability building investments
available to decision makers
Information submission
Assigned responsibilities for
each project or asset
Updating information
Maintaining information
inventory
Process to be followed
Collecting information
Commitment
Documented policies and procedures
for identifying and collecting
information about IT/supporting
services/data to support the investment
management process
Access to information
Maintaining the information
Data elements required for
each item
Cost of each item
Owner of each item
Assign responsibility for ensuring that the information
collected during service/data identification meets the
needs of the investment management process
Physical location of each item
Logical location of each item
Management attention
Prerequisites
Adequate resources made available
Involve in all high cost
and high risk investment
Information database
Supporting
tools
Data reporting, updating and query tools
Method for communicating changes in
information
KPA
Execution
(activities)
CAPABILITY LEVEL 2
Building the Investment Foundation
CAPTURE INVESTMENT INFORMATION ACTIVITIES
CAPTURE INVESTMENT
INFORMATION
KPA
Purpose:
•Make information to evaluate execution
impacts and opportunities
(activities)
created by continuing
capability building investments
available to decision makers
Project fit with EA
Identify IT/support services/data and collect specific
information to support decisions
Collected information is easily accessible and
understandable to decision makers and others
Information repository is used by investment decision
makers and others to support investment management
Responsible organization unit
Interfaces and dependencies with
other services/data
Current life cycle phase of the project and
system and associated life cycle events
Costs to date for the project or
system and anticipated future costs
General category of the project or system
e.g. infrastructure, software application,
hardware replacement
CAPABILITY LEVEL 3
Developing a Complete Investment Portfolio
LEVEL 3 ANALYSIS HIERARCHY
Process Capability
GOALS OF KEY PROCESS AREAS (KPAs)
DEFINE PORTFOLIO CRITERIA
Purpose:
Ensure that organization develops and maintains IT/support service
portfolio selection criteria that supports its mission, strategies and
business priorities
CREATE PORTFOLIO
Purpose:
Ensure that investments are analyzed according to portfolio selection
criteria and ensure an optimal IT/support service investment portfolio
with manageable risks and returns is selected and funded
EVALUATE PORTFOLIO
Purpose:
• Review the performance of organization’s investment portfolio(s) at
agreed-upon intervals and adjust the allocation of resources among
investment as necessary
CONDUCT POST IMPLEMENTATION REVIEWS
Purpose:
• Compare the results of recently implemented investments with the
expectations set for them and develop a set of lessons learned from
these reviews
CAPABILITY LEVEL 3
Developing a Complete Investment Portfolio
INSTITUTIONALIZING DEFINE PORTFOLIO CRITERIA
DEFINE PORTFOLIO CRITERIA
Purpose:
Ensure that organization develops and
maintains IT/support service portfolio
selection criteria that supports its
mission, strategies and business
Document policies and
priorities
Commitment
procedures for creating
and modifying IT/support
service portfolio selection
criteria
Assign responsibility for
managing the
development and
modification of IT/support
service portfolio selection
criteria
Objectives for the portfolio management
process
Organization’s strategic plans
Link to organization’s strategic plans,
budget processes and enterprise
architecture
Budget processes
Enterprise architecture
Requires key information elements
to create or modify the selection
criteria
Create selection criteria
Roles and responsibilities
Modify selection criteria
Suggested investment and proposal
selection criteria
Prioritize selection criteria
Record of previous selection criteria, their weights and rankings, and
how they were developed
Triggers for initiating change in the selection criteria
Distribution list
Management attention
Prerequisites
Staff to support activities
Provide adequate resources for portfolio selection criteria activities
Designate working group to be responsible for
developing and modifying the portfolio selection
criteria
Enterprise wide investment
board approves core IT/
support service portfolio
selection criteria based on the
organization’s mission, goals,
strategies and priorities
Should include CIO or other executive
management group member
Technical
Should include four essential
investment elements
Weighing schema for
investment prioritization
Aligned with enterprise
architecture
KPA
Execution
(activities)
Supporting tools and assignments
Lifecycle cost
Tangible and
intangible benefits
Lifecycle and benefits
schedules
Risks
Quality
Performance
Project performance
Organizational
External
CAPABILITY LEVEL 2
Building the Investment Foundation
DEFINE PORTFOLIO CRITERIA ACTIVITIES
DEFINE PORTFOLIO
CRITERIA
KPA
Purpose:
execution
Ensure that organization
develops and maintains
(activities)
IT/support service portfolio
selection criteria that supports
its mission, strategies and
business priorities
Each investment board
Project Management personnel and other stakeholders are aware of the
portfolio selection criteria
IT/other project managers
Organizational planners
Should be clearly addressed in
funding submission for IT/support
projects
Historical experience
Enterprise wide investment board regularly
reviews the IT/support service portfolio
selection criteria
Changes in the organization’s strategic
direction, business goals or priorities
Other factors, such as increased investment
capabilities or technological changes
CAPABILITY LEVEL 2
Building the Investment Foundation
INSTITUTIONALIZING CREATE PORTFOLIO
CREATE PORTFOLIO
Purpose:
Ensure that investments are analyzed
according to portfolio selection criteria
and ensure an optimal IT/support
service investment portfolio with
manageable risks and returns is
selected and funded
Commitment
Document policies and
procedures for analyzing,
selecting, and maintaining the
investment portfolio
Provide common definitions for IT/support service
investment portfolio categories
Apply to each investment board as each develops its
comprehensive IT/support service investment portfolio
Stipulate conditions that should be met for investment
funding decisions where exceptions are made
Management
attention
Prerequisite
Provide adequate resources for the process of creating the portfolio
Staff support for carrying out
activities within this critical process
Board members are knowledgeable about the portfolio
creation process
Use supporting tools and equipment
in creating the portfolio
Provide investment board with information comparing
project and system performance with expectations
Define investment portfolio categories for
comparison
Define thresholds for each investment
portfolio categories
KPA
Execution
(activities)
CAPABILITY LEVEL 2
Building the Investment Foundation
CREATE PORTFOLIO ACTIVITIES
CREATE PORTFOLIO
Purpose:
KPA
Ensure that investments are
execution
analyzed according to
portfolio selection criteria and (activities)
ensure an optimal IT/support
service investment portfolio
with manageable risks and
returns is selected and funded
Lifecycle cost
Rank
investments
based on:
Each IT/support service
investment board examines
the mix of new and ongoing
investments as well as their
respective data, then
analyses and selects
investments for funding
Tangible and intangible
benefits
Technical
Lifecycle schedule and
schedule of benefits
Quality
Risks
Performance
Reconcile imbalance between total funding
expectations and funds required for the qualified
investment within each portfolio category
Project performance
Organizational
External
Each IT/support service investment board approves
or modifies the performance expectations for its
selected investments
Capture and maintain information used to select,
control and evaluate the portfolio for future
reference
Maintain investment repository for capturing information
related to all investment portfolios (e.g. investment
performance expectations, portfolio thresholds)
CAPABILITY LEVEL 2
Building the Investment Foundation
EVALUATE PORTFOLIO
Purpose:
•Review the performance of
organization’s investment portfolio(s) at
agreed-upon intervals and adjust the
allocation of resources among
investment as necessary
INSTITUTIONALIZING EVALUATE PORTFOLIO AND ACTIVITIES
Investment board responsibility
Document policies and procedures for
reviewing, evaluating and improving the
performance of its portfolio(s)
Predetermined performance thresholds
Commitment
Staff support for managing information
associated with tracking investment performance
Provide adequate resources for reviewing
the investment portfolio and its projects
Prerequisite
Supporting tools and equipment
Familiarize board members with the process for evaluating and improving the portfolio’s performance
Provide results of relevant Investment oversight reviews to the investment board
Develop, review and modify criteria for assessing portfolio performance at
regular intervals to reflect current performance expectations
KPA
Execution
(activities)
Define and collect IT/support service portfolio
performance measurement data that is consistent
with portfolio performance criteria
Use exception reporting techniques to better
manage the volume of data produced
Develope performance management system
to collect information
Review investment data during formal project review activity
Document annual and lifecycle expectation as
a basis for the comparison
Use historical performance data and industry
baseline for comparison
Execute adjustments to the IT/support
service investment portfolio in response
to actual portfolio performance
Balance scorecard approach to measure the performance of investments
Earn value technique for measuring ongoing project performance
CAPABILITY LEVEL 2
Building the Investment Foundation
CONDUCT POST
IMPLEMENTATION REVIEWS
Purpose:
•Compare the results of recently
implemented investments with the
expectations set for them and develop a
set of lessons learned from these
reviews
Commitment
INSTITUTIONALIZING CONDUCT POST IMPLEMENTATION REVIEWS AND
ACTIVITIES
PIR participants
Types and sizes of investment for which PIR is conducted
PIR timing
Information presented in PIR
Document policies and procedures for
conducting post implementation reviews (PIR)
Familiarize individuals assigned to
investment board to conduct PIRs
with both policies and procedures
for conducting PIR
Criteria and procedures for tailoring standard PIR process
Communication process (recipients, mechanism
etc) for disseminating PIR findings
PIR repository for PIR information and documents
Assign team to prepare and conduct each PIR
Prerequisite
Adequate resources are provided for conducting PIRs
KPA
Execution
(activities)
Investment board identifies which
projects will have a PIR conducted
Collect and evaluate quantitative and
qualitative investment data for
reliability; analyze during the PIRs
Develop lessons learned
and recommendations for
improving the investment
process during the PIR;
document and then
distributed to all
stakeholders
Supporting tools and equipment
Project selection criteria for PIR
Involvement of investment owners & users of the investment under review in PIR
Performance expectations and actual performance
Updated performance data and explanations for changes
Measures of business or mission objectives (e.g.
operating costs, schedule, product cycle time)
Measurements of improved technical capability
Contribution of investments toward achieving both the strategy and
objectives of the organization’s IT/support service strategic plan
Surveys and interviews of all stakeholders
Interviews with senior decision makers involved in investment oversight
Proposed improvement in the investment process
Proposed improvement in the management of individual investment
PIR is distributed to all stakeholders and made available for future reference
CAPABILITY LEVEL 4
Improving the Investment Process
LEVEL 4 ANALYSIS HIERARCHY
Process Capability
GOALS OF KEY PROCESS AREAS (KPAs)
IMPROVE PORTFOLIO’S PERFORMANCE
Purpose:
Assess and improve the performance of the IT/support service
investment portfolio and the investment management process
MANAGE THE SUCCESSION OF INFORMATION SERVICES
Purpose:
Ensure that IT/support service investments in operation are periodically
evaluated to determine whether they should be retained, modified,
replaced, or disposed of
CAPABILITY LEVEL 4
Improving the Investment Process
INSTITUTIONALIZING IMPROVE PORTFOLIO’S PERFORMANCE
IMPROVE PORTFOLIO’S
PERFORMANCE
Purpose:
Assess and improve the performance of
the IT/support service investment
portfolio and the investment
management process
Commitment
Document policies and procedures
for evaluating and improving the
performance of its portfolio
Each IT/support service investment board is responsible for managing a
comprehensive portfolio evaluation and improvement process
Access to portfolio data is provided;
confidential/sensitive data is appropriately controlled
Each portfolio is evaluated at least annually to assess its performance
Support staff for executing this process
Prerequisite
Provide adequate resources for evaluating
and improving the portfolio’s performance
Methods and tools to conduct portfolio level PIR
Current and historical portfolio data
Board members have requisite core competencies in evaluating and improving portfolios
KPA
Execution
(activities)
CAPABILITY LEVEL 4
Improving the Investment Process
IMPROVE PORTFOLIO’S PERFORMANCE ACTIVITIES
IMPROVE PORTFOLIO’S
PERFORMANCE
KPA
Purpose:
execution
Assess and improve the
performance of the IT/support (activities)
service investment portfolio
and the investment
management process
Deliver process improvement
User satisfaction
Provide quality of products and services
Define and collect comprehensive
performance measurement data for
IT/support service portfolios using
agreed upon methods
Usage of acceptable methods and tools
on major investment projects
Reliable and needed support to organization
Right information
Reliable information
Accuracy of information
Timeliness of information
Results produced
Results of individual PIRs and internal and external audit reviews
Analyze aggregate performance data and trends
Baseline performance data
Develop recommendations for the IT/support service investment board
Develop and implement
recommendations for improving
the investment process & portfolio
Document the decision criteria, justification and rationale for investment decisions
Define the expected benefits of the action recommended
Make decision on implementing each recommendation
Track the recommended action as it is implemented
INSTITUTIONALIZING MANAGE THE SUCCESSION OF INFORMATION
SERVICES
CAPABILITY LEVEL 4
Improving the Investment Process
MANAGE THE SUCCESSION OF
INFORMATION SERVICES
Purpose:
Ensure that IT/support service
investments in operation are
periodically evaluated to determine
whether they should be retained,
modified, replaced, or disposed of
Each investment board make replacement decision within its business unit
Commitment
Document policies and procedures
for managing the IT/support service
succession process
Enterprise wide investment board have final
authority for making replacement decision
Coordination of replacement decisions across multiple investment boards
Procedures for managing the migration of IT/support
services to their successor
An official is designated to manage the
IT/support service succession process
Attention of executives involved
Adequate resources are provided for conducting succession
Staff to support the process
Supporting tools and equipments
Prerequisite
Investment board members exhibit core competencies in activities involving the succession of information services
Investment information from the repository is used by the investment board
KPA
Execution
(activities)
MANAGE THE SUCCESSION OF INFORMATION SERVICES ACTIVITIES
CAPABILITY LEVEL 4
Improving the Investment Process
IMPROVE PORTFOLIO’S
PERFORMANCE
KPA
Purpose:
execution
Assess and improve the
performance of the IT/support (activities)
service investment portfolio
and the investment
management process
Investments near or exceeding their planned life cycle
Investments in O&M phase
Investment encountering significant data conversion problems
Investment board develops criteria for identifying
investments that may be ready for replacement
Periodically evaluate investments
and identify appropriate investments
as candidates for replacement
Investments based on assumptions that are no longer valid
Replacement application or hardware
technology is imminent or planned
Required managerial judgment
Investment’s sponsor, manager and/or owner involvement
Analyze interdependency of each investment with
other investments in the portfolio
Contingency plans to mitigate any negative
impact while replacing an investment
Retain or continue the system
Fix the system
For each IT/support investment that has been
identified as a candidate for replacement, the
investment board decides whether or not to replace it
Enhance or improve the system
Replace the system
Combine or disaggregate the system
Retire or dispose the system
CAPABILITY LEVEL 5
Leveraging IT for Strategic Outcomes
LEVEL 5 ANALYSIS HIERARCHY
Process Capability
GOALS OF KEY PROCESS AREAS (KPAs)
OPTIMIZE THE INVESTMENT PROCESS
Purpose:
Identify and implement measurable improvements in the organization’s
IT/support service investment management processes so that the
processes meet or exceed those used by best-in-class organizations
USE IT TO DRIVE STRATEGIC BUSINESS CHANGE
Purpose:
Dramatically improve business outcomes by employing IT/support
service investment strategically
INSTITUTIONALIZING OPTIMIZE THE INVESTMENT PROCESS
CAPABILITY LEVEL 5
Leveraging IT for Strategic Outcomes
OPTIMIZE THE INVESTMENT
PROCESS
Purpose:
Identify and implement measurable
improvements in the organization’s
IT/support service investment
management processes so that the
processes meet or exceed those used
by best-in-class organizations
Commitment
Collect and analyze performance measurements for the
investment management process to form a process baseline
Use historical data to analyze current performance
Document policies and procedures for
improving the IT/support service investment
management process using benchmarking
Identify leading practices in external organizations and
use as benchmarks for process improvements
Revisit and update the baselines and benchmarks periodically
Designate an official to manage benchmarking activities
Prerequisite
Provide adequate resources for conducting
process benchmarking activities
Staff for measuring investment process performance
Supporting tools and equipments
Train organizational managers and staff with responsibilities in this area in process benchmarking techniques
KPA
Execution
(activities)
OPTIMIZE THE INVESTMENT PROCESS ACTIVITIES
CAPABILITY LEVEL 5
Leveraging IT for Strategic Outcomes
OPTIMIZE THE
INVESTMENT PROCESS KPA
Purpose:
execution
Identify and implement
measurable improvements in (activities)
the organization’s IT/support
service investment
management processes so that
the processes meet or exceed
those used by best-in-class
organizations
Level of resources an organization expends
in conducting investment activities
Baseline data are collected for the organization’s
current IT/support service investment management
process
Returns on investment and tangible benefits
achieved
Measures of customer satisfaction and contributions to
mission achievements
Predefined range of values expected from
performance measurement
External comparable best-in-class IT
investment management processes are
identified and benchmarked
Identifying best-in-class organizations
Collecting data from internal, private and public
sources about best-in-class organizations
Visiting several best-in-class organizations
Benchmarking components of the best-in-class
Decide on improvement goals and expectations
Improvements are made to the organization’s
investment management process
Develop target activities that will result in
measurable process improvement
Analyze, rank and choose process improvement activities
CAPABILITY LEVEL 5
Leveraging IT for Strategic Outcomes
INSTITUTIONALIZING USE IT TO DRIVE STRATEGIC BUSINESS CHANGE
AND ACTIVITIES
USE IT TO DRIVE STRATEGIC
BUSINESS CHANGE
Purpose:
Dramatically improve business
outcomes by employing IT/support
service investment strategically
Commitment
Document policies and procedures for conducting IT/ support service-driven strategic business change activities
Designate an official to manage the activities within this process
Funding support for a state-of-the-technology laboratory, test center
Prerequisite
Provide adequate resources for
conducting IT/support service-driven
strategic business change activities
Technical information and research
Staff support for executing this process
Supporting tools and equipment
KPA
Execution
(activities)
The organization creates and maintains a knowledge base of state-ofthe-technology IT/support products, services and processes
Identify and evaluate information technologies with strategic business-changing capabilities
Plan and implement strategic changes to the
business processes based on the capabilities of
identified information technologies
Engage risk reducing activities such as pilots,
simulations or the development of prototypes