Performance Management in IT Governance

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 1 -> 17
 Course Overview
Course Name: IT Governance
Session Title: Performance Management in IT Governance
Duration: 2 hours

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 2 -> 17
 Learning Objectives
Understand the importance of performance management in IT Governance.
Learn how to measure IT performance and its value to the organization.
Explore the use of Key Performance Indicators (KPIs) for IT performance.
Understand the IT Balanced Scorecard as a tool for performance management.

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 3 -> 17
 Agenda
Course Overview
Learning Objectives
Agenda
1. Introduction to IT Performance Management
2. Measuring IT Performance and Value
3. Key Performance Indicators (KPIs) for IT
4. IT Balanced Scorecard
5. Interactive Session: Developing KPIs and a Balanced Scorecard
6. Q&A and Discussion

Resources
Assignments (For Next Session)
Conclusion

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 4 -> 17
 1. Introduction to IT Performance Management
Definition and importance of performance management in IT Governance.
Role of performance measurement in aligning IT with business objectives.

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 5 -> 17
 1 . Ensuri ng IT support s bus ine ss objectives
A . Definition of
2 . Moni tori ng IT e fficie ncy a nd e ffe ctive ne ss Perf orman ce
1 . Me a suring IT Va lue Cont ribut ion
M an ag emen t
3 . IT servi ce s cont inuous improve me nt
- Strategi c al i gnment of IT servi ces wi th busi ness goal s
- Demonst ra t i ng IT’s rol e i n busi ness succe ss
1 . A ccount a bilit y for IT se rvice s
- Tra cki ng perf ormance agai nst objecti ves
Intr oduction t o IT 2 . Se t t ing K e y Pe rforma nce Indicators (KPIs)
C . R ole of Perf orman ce
P er for mance M easu remen t - Def i ni ng me a sura bl e out come s for IT projects
M a na ge me nt
2 . Enha ncing de cision-ma king B . Imp ortance of
Perf orman ce
- Dat a-dri ven IT gove rna nce strategi es M an ag emen t 3 . Pe rforma nce Monit oring a nd Re porting
- Tra cki ng KPIs t o e nsure IT support s busi ness ne e ds
- Regul ar perf orma nce re vi e ws for cont i nuous al i gnment
3 . Improving resource allocation
- Prioritizing IT i nve st me nt s

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 6 -> 17
 2. Measuring IT Performance and Value
Different approaches to measuring IT performance.
Understanding the value of IT beyond financial metrics (e.g., strategic value, operational efficiency).
Common frameworks and methods for assessing IT value (e.g., ROI, TCO, Value on Investment).
Case study: Measuring IT performance in a real-world organization.

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 7 -> 17
 1. Ke y Perf orman ce Indicators (KPIs)
- S ervi c e L evel Ag reem en ts (SLAs)
- Availab ility an d U p ti me Metri c s
- Incident Resp o n se T i m es

2. Bal an ced S corecard

- Financ ial Persp ec tive A . Appr oache s t o
- Cu sto mer Persp ec tive M easuring P erformance
- Internal P ro c esses Persp ec ti ve 1. Return on Investment (ROI)
- Learn in g an d Gro wth Persp ec ti ve - Co st S avin g s
- Rev en u e Gro wth
- In vestmen t G ai n s
3. Ben ch markin g
- Industry S tan d ard s
- P eer Co mp ariso n s 2. Total C ost of Ownership (TCO)
M easuring IT
C . C ommon Assessing - Cap i tal E xp en d itu res
Perfo rmance a n d Framew orks & M e thods - Op eratio n al Co sts
1. S trateg ic Val u e Val u e
- Main ten an c e an d U p g rad es
- Co mp etitive Ad van tag e
- Innovation E n ab lemen t
- Mark et Differentiatio n 3. Val u e on Investment (VOI)
- Bu si n ess P ro c ess Imp ro vemen ts
- Cu sto mer Satisfac tio n
2. Op eration al Efficiency - E mp l o yee Pro ductivity
- S treamlin ed P ro c esses B . V alue o f IT F inancial
- Imp ro ved Pro ductivity M etrics
- Co st Red u c tio n s

3. Risk M an ag emen t
- IT S ec u rity E n h an c emen ts
- Co mp lian c e with Reg u latio n s
- D at a Integrity an d Co ntinuity

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 8 -> 17
 3. Key Performance Indicators (KPIs) for IT
Definition and purpose of KPIs in IT.
Examples of KPIs for IT operations, development, and support.
IT service availability and uptime
Incident response times
System performance and resource utilization
Customer satisfaction and user experience
Project delivery on time and within budget
How to develop meaningful KPIs aligned with business objectives.
Monitoring and reporting on IT performance using KPIs.

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 9 -> 17
 1 . D efine a n d m e asure IT p er for man c e
2 . A lign IT activities with b u sin ess g oals
Purpos e o f KPIs
3 . S u p p or t decision-m aking an d conti nuous
im prov em ent

1 . IT Serv ice Availability a n d Uptim e

- M easu r e s y s t e m an d ser vic e r eliab ility
- Id en tify d own times an d imp r ov e availab ility 1 . Identify ke y busi ne ss goa l s a n d IT's rol e in ac h ievin g
th em
Ho w t o De ve lo p 2 . Se le ct relev ant m etrics for IT's c on tr ib u tion t o b u sin ess
2 . Incident Re sponse Tim es Me a ningful KPIs valu e
- Tr ac k t i m e tak en t o r esolv e in c id en ts 3 . E n su r e KPIs ar e specif ic, m easurable, achiev able,
- I mp r ove op er ation al effic ien c y an d r ed u c e ser vic e relev ant, a n d tim e-bound ( SMART)
d isr u p tion K e y Perf orman ce
Indicators (KPIs)
1 . E stab lish re gul a r KPI review a n d re porti ng p r oc esses
3 . Sy ste m P erf orm ance a n d Re source Utilization
Exa mple s o f IT KPIs Monit oring a nd 2 . U s e da shboa rds a n d autom ated tools for r eal- time
- M on itor h ar d war e an d softwar e p er for man c e Re port ing o n IT mon itor in g
- O p timize r esou r c e u se for b etter effic ien c y Pe rforma nce Us ing KPIs
3 . Adj ust strategies a n d ope rations b ased o n KPI
in sig h ts
4 . C ustom er Satisf action a n d Us e r Experience
- S u r vey u ser feed b ac k o n IT ser v ic es
- E n h an c e u ser in ter ac tion with IT solu tion s

5 . P roj ect D elivery o n Tim e a n d Wi thi n B udge t

- Tr ac k p r ojec t timelin es an d fin an c ials
- E n su r e ad h er en c e t o sc h ed u les an d b u d g ets

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 10 -> 17
 4. IT Balanced Scorecard
Introduction to the Balanced Scorecard framework.
Adapting the Balanced Scorecard for IT Governance.
The FOUR perspectives of the IT Balanced Scorecard:
1. Financial: IT cost efficiency, return on IT investment.
2. Customer: User satisfaction, service level agreements (SLAs) adherence.
3. Internal Processes: IT service delivery, incident management, and system performance.
4. Learning and Growth: Employee training, innovation in IT, and resource development.

Using the IT Balanced Scorecard to align IT initiatives with organizational goals.

Practical examples of using the IT Balanced Scorecard in organizations.

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 11 -> 17
 1 . Fina ncia l Pe rspe ct ive
- IT C ost Ma na ge me nt
- Re t urn o n Invest ment (ROI)
Importance i n Strategic Ma na ge me nt - Tot a l C ost of Ownershi p (TCO)
K e y C omponent s: Obje ct ive s, Me a s ure s , Targe t s,
Initiatives
Bal an ced S corecard 2 . Cus t ome r Pe rspe ct ive
A ligning IT wit h B usine ss St rat e gy Framew ork - IT Se rvi ce De l i ve ry
Me a s uring IT Va lue B e yond Fina ncia ls - Us e r Sati sfacti on
- Se rvi ce Le ve l A gre e me nt s (SLA s)
Cus t omizing Me t rics fo r IT Ope ra t ions a n d Innovation IT B alanced Th e 4 Persp ecti ves IT
S co recard Bal an ced S corecard
3 . Internal Proce ss Pe rspe ct ive
1 . Se t t ing IT Strategic Obje ct ive s
- IT Operati onal Ef f i ci ency
2 . Link ing IT Me t rics t o B usine ss Goa ls - C ha nge a n d Inci dent Ma na ge me nt
Usi ng t h e IT Bal an ced - Sys t e m Avai l abi l i ty a n d Reliabili ty
3 . Monit oring a n d Re port ing IT Pe rforma nce S corecard
4 . Cont inuous Improve me nt a n d Strategic
Adjust me nt s 4 . Le a rning a n d Growt h Pe rspe ct ive
- IT Ski l l s De ve l opme nt
- Innovati on a n d Te chnol ogy A dopt i on
- Empl oye e Sati sfacti on a n d Retenti on

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 12 -> 17
 5. Interactive Session: Developing KPIs and a Balanced Scorecard
Group exercise: Developing KPIs for an IT department in a hypothetical organization.
Interactive discussion on creating an IT Balanced Scorecard based on the group’s KPIs.

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 13 -> 17
 6. Q&A and Discussion
Open floor for questions and discussion.
Encouraging students to share insights or challenges they’ve encountered in IT performance management.

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 14 -> 17
 Resources
Readings:

“IT Governance: How Top Performers Manage IT Decision Rights for Superior Results” by Peter Weill and Jeanne W. Ross.
“The IT Balanced Scorecard: A Roadmap to Effective Governance of a Shared Services IT Organization” by Jessica Keyes.

Online Resources:

Articles and case studies on the use of KPIs in IT.

Tutorials on implementing the IT Balanced Scorecard.

Supplementary Materials:

Slides used during the session.

Templates for developing IT KPIs and a Balanced Scorecard.

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 15 -> 17
 Assignments (For Next Session)
Develop a set of KPIs for your organization’s IT department, ensuring alignment with the business strategy.
Create an IT Balanced Scorecard based on your KPIs, focusing on the four perspectives.

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 16 -> 17
 Conclusion
This session explored performance management in IT Governance, focusing on measuring IT performance, developing KPIs, and
utilizing the IT Balanced Scorecard. By the end of the session, students will have gained insights into the tools and techniques used
to assess and improve IT performance in alignment with organizational goals.

I Wayan Widi Pradnyana, S.Kom, MTI @ Fakultas Ilmu Komputer UPN Veteran Jakarta (wayan.widi@upnvj.ac.id) 17 -> 17