One of the main benefits of the BSC for IT strategy is that it provides a holistic and balanced view of IT performance and impact. By using multiple perspectives and indicators, the BSC can capture both the financial and non-financial aspects of IT value, such as customer satisfaction, process efficiency, innovation, and learning. The BSC also helps IT leaders communicate and justify IT investments and outcomes to the business stakeholders, by linking IT objectives and initiatives to the strategic goals and vision of the organization. Moreover, the BSC can help IT teams align their activities and priorities with the business needs and expectations, and foster a culture of continuous improvement and learning.
In order to ensure that the benefits are tangible and can be realistically achieved: 1. Liaise with other departments to ensure the IT BSC aligns with overall business objectives. Regularly review and update the BSC to reflect changing business strategies and IT capabilities. 2. Establish a routine for reviewing BSC results, such as quarterly reviews. Encourage feedback and ideas from all levels of the IT team. 3. Use findings to update IT strategies and processes.
However, the BSC for IT strategy also has some challenges and limitations that need to be addressed. One of the main challenges is to define and select the appropriate measures and targets for each perspective, that are relevant, reliable, and realistic for IT. This can be difficult, as IT often has complex and intangible outputs and outcomes that are hard to quantify and compare. Another challenge is to ensure that the BSC is updated and reviewed regularly, and that the data and feedback collected are used to inform and adjust IT strategy and actions. Otherwise, the BSC can become obsolete and irrelevant, or worse, create a false sense of achievement and complacency. A third challenge is to avoid overloading the BSC with too many measures and initiatives, that can dilute the focus and clarity of IT strategy and performance. A simple and focused BSC is more effective and manageable than a complex and cluttered one.
Consultor em Governança de Tecnologia da Informação e Cybersecurity | Professor
Manter claro para a equipe de TI sobre os objetivos estratégicos a serem alcançados é uma boa opção, construindo juntos um "Mapa Estratégico" de acordo com a realidade da organização previamente por meio de entrevistas nos departamentos, visando assim, identificar a maneira como a empresa vê a TI e compreende a sua importância no caminhar juntos em rumo às estratégias do negócio. A colaboração com as partes interessadas se torna indispensável, mas é preciso se atentar que a equipe precisa possuir participação nos processos e definições que devem seguir para o pleno alcance de suas metas. Será necessário a gestão de mudanças, pois o impacto pode variar independente do grau dos resultados inicialmente alcançados.
- Integrate BSC objectives into individual performance reviews and team goals. Regularly communicate progress and achievements towards these objectives to maintain alignment and motivation. - Collaborate with different stakeholders to understand what measures are most impactful. - Adopt a portfolio management approach to prioritize measures and initiatives, using alignment with Business Strategy as a KPI
The BSC for IT strategy is a powerful tool that can help IT leaders and teams align, measure, and communicate IT performance and value to the business. To make the most of this tool, it is important to involve business stakeholders in defining and validating the IT strategy. Additionally, you should use a mix of leading and lagging indicators, qualitative and quantitative indicators, as well as internal and external benchmarks. Furthermore, you should review and revise the BSC periodically to ensure that it remains relevant. By following these tips, you can use the BSC for IT strategy successfully, and achieve your IT goals and objectives.
Getting senior management discussing and agreeing on measures is a key part of the process. Possibly more important than the scorecard itself in some cases as it reveals misalignment between people’s opinions and understanding of the strategy and how to deliver it
From my experience, the balanced scorecard proves to be a valuable tool when delivering testing services in a managed services model. When creating a balanced scorecard for software testing, we focus on four key aspects. Firstly, are we optimizing testing costs and striving to reduce the overall Cost of Quality? Secondly, are we ensuring efficient service delivery and continuously improving efficiency? Thirdly, are we exceeding the expectations of end customers by delivering exceptional results? Finally, are we staying current and keeping our employees engaged and satisfied? By mapping these categories of goals into KPIs and Metrics, we can effectively monitor our performance and present real-time status updates through dashboards.