Matakuliah : A0824/IT Investment Portfolio
Tahun
: 2009
CONFIRMING CRITICAL
PORTFOLIO CONTENT
Pertemuan 13-14
However beautiful the strategy, you should occasionally
look at the results. ~ Winston Churchill
Critical Enterprise Results Chains
• The Strategy Map
The strategy map is a visual communications tool that identifies the
critical processes and their results and how those results are linked
together to implement an organization’s strategies for achieving its
strategic goals.
The strategy map provides a blueprint an organization can follow to
align its processes, people, and information technology for superior
performance
The strategy map can give a manager the grounds for justifying a
business process improvement investment if the process is not
producing the required results.
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Critical Enterprise Results Chains
• Strategic IT Linkages
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Strategic IT Linkages
• The critical results lingkages on the strategy map need
to be identified so the results at these points can be
monitored.
• The identification of the critical results linkages is best
determined by a high-level integrated project team that is
formed to study each component or process leading to
the creation of the strategy map.
• The team generally cosist of specialists in the functional
area encompassed by the map :
– Human resources experts
– IT professionals
– Other specialists
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Strategic IT Linkages
• Result of Integrated project team
– Identification of the critical results and their lingkages for each
strategy path on the strategy map
– Performance measures for monitoring critical results
– Identification of the strategic IT within each business process
that enables critical results
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Relationship to Balanced Scorecard
• Strategy map concept is based on the Balance
Scorecard approach to corporate management. This
approach calls for looking at performance from four
related perspectives :
–
–
–
–
Financial
Customer
Internal Operational
Learning & Growth
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Value Chains and Results Chains
• Value Chains
consists of a set of interrelated primary and support
activities that an enterprise performs to turn inputs into
value-added outputs (results). One activity’s results may
be an input to the next linked activity or activities or it
may be the final result in a chain of activity results that
produces a product or service for external customers
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Value Chains and Results Chains
• Results Chains
The term “results chain” refers to the measurable results
of each interrelated value-producing activity in a value
chain. It is based on the notion that the value of an
activity is determined by its measurable results, not by
results that are not measured or not measurable.
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Result Chain
• Results chain make it possible to anlyze performance
problems.
• Provide the “drill down” analysis capability required to
isolate the source of a problem so it can be corrected.
• A result chain is at a more detailed level than a strategy
map because it is intended to support detailed analysis.
• The strategy map provides a high-level view intended to
communicate the overall strategies and the major
business processes that implement them
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Results Chain Involving Two Business Processes
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
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Act 1
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Selectivity in Capturing Results
• Depends :
– Results chain
– “size” of the activities – the amount and complexity of the work
encompassed by an activity.
• Measurement
• Objectives
• Decision
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Gap Analysis and Problem Resolution
• Performance gap
• Analysis
• Performance measures
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Result Chains and Gap Analysis
A number of results chains will
follow this path from the
Learning and Growth
activities through other
activities to the productivity
strategy results and long
therm shareholder value
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Importance of Results Chain Analysis
• Valuable for lines of business that have complex,
interdependent chains of activities
• The segment performance measures can often be
designed to identify the specific activity causing it
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Significance of Performance Measures
• The effective use of performance measures is key to
results chain analysis. A basic requirement is that the
performance measures accurately measure the
performance results of key acitivities in critical strategy
paths.
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Monitoring Critical Performance
•
•
•
•
Prototyping Displays and Report
Portfolio Views
Dashboards and Scorecard
Automated Performance Monitoring
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Prototyping Displays and Reports
• To ensure that these individuals and groups understand
which results are critical to the performance of the
organization, especially those in areas for which they are
responsible
• The objective is:
–
–
–
–
To confirm the information that they need and want
How and when the information is to be delivered to them
The form the information should take
How fressh the information must be
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Prototyping Displays and Reports
• Approach is to provide individuals and groups with
prototype portfolio views, analyses, displays and reports
for their opportunity to participate in the planning of the
reporting mechanisms, which increases the likelihood
that they will feel ownership and be more committed to
the system’s success.
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Portfolio Views
• An advantage of ITPM is that there is only one version of
the information provided, so people do not receive
conflicting figures or other information that must be
reconciled.
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Dashboards and Scorecards
“Dasboards” are especially valuable for displaying
integrated enterprise performance information.
- refers to a visual display of information that helps
managers monitor various measures of performance.
“Scorecards” are also used, sometimes separately and
sometimes in conjucntion with dashboard displays.
- tends to be used more with certain types of
methodologies, such as the Balanced Scorecard or the
“investment assessment scorecard.”
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Automated Performance Monitoring
• Automated Gap Analysis
• Meeting New Challenges
– The IT resources that now support the performance objectives
involves and the capacity of these resources for meeting greater
demands
– The ongoing projects or newly selected projects that could,
perhaps with some modification, help to meet the expected
future performance demands.
• Monitoring at the activity, process, and enterprise levels
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