Evaluating Performance in Information Technology
Training and Education ROI Methodology for NLB
mag. Saša Fajmut, Head of the Center for Training and Education
NLB d.d., HR Department
Trg republike 2, SI-1520 Ljubljana
T:+386 1 476 3694,
F:+386 1 251 0360
This Management Accounting Guideline provides an IT performance measurement framework, articulates specific measures, describes the
causal relationship between various drivers and measures, and through
examples, illustrates how companies can identify and measure the payoffs of IT investments.
In 2002, a group of HR managers from eight large Slovenian companies (NLB, Gorenje, Revoz, Luka Koper, Kovinoplastika Lož, Mercator, Telekom Slovenija, Krka) joined in an effort to develop a common methodology to compare and benchmark HR function's performance across industries. Together, we established a benchmark methodology for measuring performance of HR activities.
How to Measure and Improve the Value of IT
HR Benchmarking Methodology
References in HR and IT Performance Measurement
Though there has been significant discussion concerning the importance of evaluating the payoffs of HR and IT investment, there has been little guidance as to how to design or implement an appropriate performance evaluation system. Thus, investments are often made without the rigor of measurement of either the benefits or costs of such nvestments. Typically costs are much higher than anticipated and the benefits are far lower and harder to achieve. Senior managers are also frustrated. They are convinced that, if measured properly, HR and IT does create value. In my professional work, I have developed a number of methodologies to help companies measure and demonstrate the value of HR and IT investments.
An IT performance measurement and management system must focus on the causal relationships and linkages within the organization and the actions managers can take to improve both customer and corporate profitability and drive increased value. To do this, a company should determine the key drivers of IT success and the causal relationships among them and develop numerous performance measures to track IT performance. Marc Epstein and I have created a Balanced Scorecard along with a broad list of measures for evaluating performance in information technology to help CIOs justify and evaluate their initiatives and aid
CEOs and CFOs in making better resource allocation decisions.