2. CONFIRMING CRITICAL PORTFOLIO CONTENT Pertemuan 13-14
Matakuliah : A0824/IT Investment Portfolio
Tahun : 2009
CONFIRMING CRITICAL PORTFOLIO CONTENT Pertemuan 13-14
However beautiful the strategy, you should occasionally
look at the results. ~ Winston Churchill

3. Critical Enterprise Results Chains
The Strategy Map
The strategy map is a visual communications tool that identifies the critical processes and their results and how those results are linked together to implement an organization’s strategies for achieving its strategic goals.
The strategy map provides a blueprint an organization can follow to align its processes, people, and information technology for superior performance
The strategy map can give a manager the grounds for justifying a business process improvement investment if the process is not producing the required results.
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4. Critical Enterprise Results Chains
Strategic IT Linkages
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5. Strategic IT Linkages
The critical results lingkages on the strategy map need to be identified so the results at these points can be monitored.
The identification of the critical results linkages is best determined by a high-level integrated project team that is formed to study each component or process leading to the creation of the strategy map.
The team generally cosist of specialists in the functional area encompassed by the map :
Human resources experts
IT professionals
Other specialists
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6. Strategic IT Linkages Result of Integrated project team
Identification of the critical results and their lingkages for each strategy path on the strategy map
Performance measures for monitoring critical results
Identification of the strategic IT within each business process that enables critical results
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7. Relationship to Balanced Scorecard
Strategy map concept is based on the Balance Scorecard approach to corporate management. This approach calls for looking at performance from four related perspectives :
Financial
Customer
Internal Operational
Learning & Growth
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8. Value Chains and Results Chains
consists of a set of interrelated primary and support activities that an enterprise performs to turn inputs into value-added outputs (results). One activity’s results may be an input to the next linked activity or activities or it may be the final result in a chain of activity results that produces a product or service for external customers
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9. Value Chains and Results Chains
The term “results chain” refers to the measurable results of each interrelated value-producing activity in a value chain. It is based on the notion that the value of an activity is determined by its measurable results, not by results that are not measured or not measurable.
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10. Result Chain
Results chain make it possible to anlyze performance problems.
Provide the “drill down” analysis capability required to isolate the source of a problem so it can be corrected.
A result chain is at a more detailed level than a strategy map because it is intended to support detailed analysis.
The strategy map provides a high-level view intended to communicate the overall strategies and the major business processes that implement them
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11. Results Chain Involving Two Business Processes
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
Act 1
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12. Selectivity in Capturing Results
Depends :
Results chain
“size” of the activities – the amount and complexity of the work encompassed by an activity.
Measurement
Objectives
Decision
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13. Gap Analysis and Problem Resolution
Performance gap
Analysis
Performance measures
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14. Result Chains and Gap Analysis
A number of results chains will follow this path from the Learning and Growth activities through other activities to the productivity strategy results and long therm shareholder value
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15. Importance of Results Chain Analysis
Valuable for lines of business that have complex, interdependent chains of activities
The segment performance measures can often be designed to identify the specific activity causing it
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16. Significance of Performance Measures
The effective use of performance measures is key to results chain analysis. A basic requirement is that the performance measures accurately measure the performance results of key acitivities in critical strategy paths.
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17. Monitoring Critical Performance
Prototyping Displays and Report
Portfolio Views
Dashboards and Scorecard
Automated Performance Monitoring
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18. Prototyping Displays and Reports
To ensure that these individuals and groups understand which results are critical to the performance of the organization, especially those in areas for which they are responsible
The objective is:
To confirm the information that they need and want
How and when the information is to be delivered to them
The form the information should take
How fressh the information must be
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19. Prototyping Displays and Reports
Approach is to provide individuals and groups with prototype portfolio views, analyses, displays and reports for their opportunity to participate in the planning of the reporting mechanisms, which increases the likelihood that they will feel ownership and be more committed to the system’s success.
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20. Portfolio Views
An advantage of ITPM is that there is only one version of the information provided, so people do not receive conflicting figures or other information that must be reconciled.
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21. Dashboards and Scorecards
“Dasboards” are especially valuable for displaying integrated enterprise performance information. - refers to a visual display of information that helps managers monitor various measures of performance. “Scorecards” are also used, sometimes separately and sometimes in conjucntion with dashboard displays. - tends to be used more with certain types of methodologies, such as the Balanced Scorecard or the “investment assessment scorecard.”
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22. Automated Performance Monitoring
Automated Gap Analysis
Meeting New Challenges
The IT resources that now support the performance objectives involves and the capacity of these resources for meeting greater demands
The ongoing projects or newly selected projects that could, perhaps with some modification, help to meet the expected future performance demands.
Monitoring at the activity, process, and enterprise levels
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