Ensuring Digital Dividends From Your Technology Investments
Accountability is key to delivering digital benefits. However, many organizations lack visible, explicit metrics to monitor progress and attainment. Lack of such metrics allows leaders to evade responsibility for poor results.
First, CIOs should identify metrics grounded in business performance and collaborate with the appropriate accountable leader to confirm what “improvement” means and how it can be measured. For example, if the CEO’s goal is to improve profit margins, the CIO might prioritize an initiative focused on improving customer and constituent experience. The first step for the CIO is to clarify with the CMO what success looks like — what kind of improvement should be made to deliver the improved profit margin.
Next, identify all the other initiatives underway that will collectively contribute to the desired business outcome and financial impact. Create a visual metrics hierarchy to show the contribution of each. Metrics further down in the hierarchy are indirect. This provides visibility into which initiatives generate desired outcomes, and who is responsible for each contributing activity within the value stream.
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