6. IT Performance Management: Defining Success

This chapter provides you with an understanding of performance management and why it should be a critical, ongoing activity for your IT organization. We discuss several common industry approaches to the measurement of organizational performance, with a focus on the balanced scorecard (BSC) approach pioneered by Dr. Robert Kaplan and Dr. David Norton in 1992. We also define what factors have resulted in a somewhat mixed track record of success with BSC implementations across commercial, government, and nonprofit organizations, and how the BSC approach is being adapted by leading IT organizations using ITIL, performance benchmarking, and other techniques.

The capability of IT organizations to develop, ...

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