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9 key metrics for IT success | CIO
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The result is wasted time, confusion, and, in some cases, conflicting insights.\n\nThere are several important metrics that can be used to achieve IT success, says Jonathan Nikols, senior vice president of global enterprise sales for the Americas at Verizon. \u201cTo name a few \u2014 products and services that are delivered on time and on budget, and overall IT ROI.\u201d The most effective approach to achieve success, he adds, is to study metrics across all adoption performance areas. \u201cMetrics provide a means to monitor progress.\u201d\n\nFor the CIO assembling an analysis package that enterprise leaders can use to glean IT\u2019s impact on transformations and operations, metrics minimalism is key. Avoid clutter and confusion to instead focus on a core set of fundamental metrics that provide clear insight into critical issues and challenges. While additional analysis tools can be added over time to augment and illuminate important trends, it\u2019s best to begin with just a few basic tools.\n\nHere\u2019s a look at the fundamental metrics that stand out for accurately measuring IT success and should have a home in every CIO\u2019s analysis toolkit.\n\n1. Return on investment\n\nAs it has for years, return on investment (ROI) continues to be the central metric associated with transformation. \u201cTransformation is all about doing business differently and generating value,\u201d says Lou DiLorenzo, US CIO and CDAO program leader at Deloitte Consulting. Besides providing insight into value, ROI, when performed correctly, will highlight the joint ownership between business and IT that\u2019s necessary to bring transformation to life.\n\nProject ROI should never be defined by a single IT project manager working in a vacuum, DiLorenzo cautions. Planning should always be a joint effort. Under this arrangement, business users own the numerator \u2014 essentially the reason why the transformation project launched \u2014 to increase sales volume, optimize margin through pricing, and so on. IT, meanwhile, owns the denominator \u2014 the cost to deliver the work on time, on budget, and with high quality.\n\n\u201cEach side needs to deliver on their obligation for the project to be successful, and piling up a number of successful, value-creating projects will help transform a business,\u201d DiLorenzo says.\n\n2. Business value delivered\n\nClosely related to ROI is business value delivered. \u201cThis is the most relevant metric for the business, and it helps to justify the investment needed by the IT organization to drive the transformation initiative,\u201d says Sameer Bhagwat, vice president and head of IT consulting firm Capgemini Americas\u2019 Applications Managed Services Center of Excellence.\n\nSpecific IT transformation projects are frequently linked to overall enterprise digital transformation initiatives. But the success of these projects can still be measured by the traditional metrics of project costs \u2014 implementation timelines, functionality delivered, and so on. \u201cThe true measure of success is based on the business value delivered,\u201d Bhagwat says.\n\nAccording to Bhagwat, the ability to directly link IT transformation to business benefits will foster greater collaboration between business and IT leaders. \u201cIt also enables better governance on transformation initiatives, since initiatives that drive higher value for the business get prioritized.\u201d\n\nBusiness benefits can be quantified in three dimensions, Bhagwat says \u2014 revenue improvement, cost reduction, or working capital improvement. \u201cThis allows for easy comparisons across initiatives to identify those that deliver the maximum transformation benefits,\u201d he states. \u201cQuantifying the expected business value of an IT initiative forces the IT teams to better understand the implications and impact of the transformation initiative they are implementing.\u201d\n\n3. Rate of change\n\n\u201cThe most important metric for IT success is rate of change,\u201d says Nicolas Avila, CTO for North America at IT and software development company Globant.\n\nAvila observes that many IT leaders will default to ROI as the most important metric because there\u2019s strong belief that a good ROI is necessary to get the most out of the technology spend.\n\n\u201cThat\u2019s key, but something that leaders don\u2019t fully realize is that the speed in which we can create change not only allows us to react faster, but also helps reduce our fear of failing,\u201d Avila explains. \u201cFailing isn\u2019t as critical when your IT department is going to quickly and constantly change and improve.\u201d\n\nThe rate-of-change metric helps destigmatize failure, and if failure is unavoidable, it\u2019s important to fail fast, Avila advises. \u201cMost companies think of failure as something they want to avoid, but really fast-changing organizations understand failures as a step towards success.\u201d\n\nEvery leader and every team should use rate of change to determine how quickly they can turn around a particular change, Avila recommends. \u201cMany managers are measured by their production rather than their speed of evolution, and that\u2019s an issue in the modern world,\u201d he notes. \u201cYou have to have a good measure of which teams need to move fast and what they are really achieving.\u201d\n\nAvila says it\u2019s also important to understand that that the rate-of-change metric doesn\u2019t only live within the IT department \u2014 it also informs business leaders. \u201cBusinesses should work hand in hand with their IT department to pivot quickly in order to maximize success,\u201d he concludes.\n\n4. Application delivery success\n\nHow well an IT organization can deliver critical business applications is an essential metric, says Song Pang, senior vice president of engineering at network automation technology provider NetBrain Technology. \u201cMost modern applications are comprised of many distributed services working together,\u201d he notes. \u201cEach micro-service must be able to be delivered as the enterprise architect designed.\u201d\n\nService delivery success relative to service usage volume is a directional metric, Pang states. \u201cThis metric becomes more successful as increasing effort is expended to reduce problems before they are reported.\u201d\n\nDiscovering issues before they are noticed should be a fundamental goal any IT organization has, and comparing its value month after month will determine if IT is improving at delivering services.\n\n5. IT and business team engagement\n\nMatt Mead, CTO of tech consulting firm SPR, believes that IT and business team engagement is a powerful metric for measuring transformation success. \u201cWe know teams experience psychological development through forming, storming, norming, and performing,\u201d he says. \u201cWe also know it takes time for joint business and technical teams, typically created for an organizational transformation, to gel and get into a groove.\u201d\n\nMead notes that he frequently sees clients failing to allot sufficient time for transformative changes to settle into place. Instead, poorly engaged IT and business project leaders declare success and move on, prematurely, to the next transformation stage.\n\n\u201cThe best metric, especially during the first year of a transformation, is to measure the engagement level from all team business and IT team members,\u201d he advises. \u201cIf engagement is high, you have the foundation upon which to be successful,\u201d Mead says. \u201cIf engagement is low, your transformation is flawed, and failure is likely.\u201d\n\n6. Customer experience quality\n\nWhile a digital transformation initiative may include a variety of goals, such as enhanced productivity, larger market share, or optimized operational costs, success is ultimately defined by a single thing: how do customers feel about the enterprise\u2019s brand, product, or service, says Milind Damle, principle at digital-first technology services firm Apexon. \u201cIf your digital transformation initiatives don\u2019t improve the quality of the customer experience, are they really meaningful in achieving consistent top-line growth?\u201d he asks. \n\nDamle notes that numerous reports over the years have discovered that customers place experience over price when making a brand decision.\u202f\u201cThis makes customer experience the most important metric in measuring the success of any transformation initiative,\u201d he states.\n\n7. End-user satisfaction\n\nEnd-user satisfaction offers insight into how well IT services are aligning with user expectations, needs, and perceptions. High satisfaction leads to increased IT trust, reduces shadow IT, encourages collaboration with business leaders, and improves employee retention, ultimately leading to more efficient and effective operations, says Chris Karalis, a director with technology research and advisory firm ISG.\n\nEnsuring end-user satisfaction begins with periodic surveys to collect user feedback. \u201cThese surveys should address multiple facets of a user\u2019s IT experience, including satisfaction with technology devices, applications, connectivity, and support,\u201d Karalis, advises. Additionally, the surveys should be conducted across the entire user population to ensure that no one is overlooked.\n\nISG suggests administering surveys annually, along with periodic brief transaction canvasses following various user interactions, such as service requests, bug fixes, and incident resolutions, to continually monitor satisfaction trends. \u201cIT then needs to analyze the data to identify potential issues in how IT services are delivered, and which user groups are most impacted,\u201d Karalis says. He adds that IT leaders need to address pain points with actionable results or users may stop providing input and, over the long term, become more disgruntled with IT services.\n\nThe end-user satisfaction metric\u2019s strength lies in the fact that it touches all parts of the IT organization. \u201cWhile some components face users more directly, all service areas have dependencies that impact users in some way,\u201d Karalis says. Satisfaction metric results should be shared with both IT and business leaders, and action plans should be developed by C-level executives and IT service leads.\n\n8. Technical debt index\n\nExcessive technical debt can fatally damage even the most promising transformation initiative. When a project is developed and deployed in a rush, quality often suffers and the venture must inevitably be revisited to repair compatibility problems, security gaps, performance issues, and various other budget-draining headaches, says Shafqat Azim, partner, digital strategy and solutions at technology research and advisory firm ISG. Azim believes that technical debt is the biggest inhibitor to successful agility and transformation. \u201cManaging technical debt actively as part of operations ensures an organization can transform as needed, when needed,\u201d he states.\n\nAzim suggests using a technical debt index to measure and track spending. \u201cAt a strategic level, the most important metric is the percentage of the overall technology budget being allocated to transformation,\u201d he says. \u201cIt\u2019s imperative to measure the percentage of the technology budget being allocated toward three areas: running the business, enabling incremental innovation, and enabling disruptive innovation.\u201d At a tactical level, measuring transformation throughput and velocity of transformation is critical, he adds.\n\n9. A combination of speed, quality, and value\n\nWhen merged, speed, quality, and value metrics are essential for any organization undergoing transformation and looking to move away from traditional project management approaches, says Sheldon Monteiro, chief product officer at digital consulting firm Publicis Sapient. \u201cThis metric isn\u2019t limited to a specific role or level within an IT organization,\u201d he explains. \u201cIt\u2019s relevant for everyone involved in the product development process.\u201d\n\nSpeed, quality, and value metrics represent a shift from traditional project management metrics focused on time, scope, and cost. \u201cSpeed ensures the ability to respond swiftly to change, quality guarantees that changes are made without compromising the integrity of systems, and value ensures that the changes contribute meaningfully to both customers and the business,\u201d Monteiro says. \u201cThis holistic approach aligns IT practices with the demands of a continuously evolving landscape.\u201d\n\nFocusing on speed, quality, and value provides a more nuanced understanding of an organization\u2019s adaptability and effectiveness. \u201cFocusing on speed, quality, and value provides insights into an organization\u2019s ability to adapt to continuous change,\u201d Monteiro says. \u201cIt measures how quickly ideas can be transformed into tangible results while ensuring quality and delivering value to customers and the business.\u201d\n\nThe best way to apply this metric is by measuring the entire journey, starting from the generation of ideas, Monteiro says. \u201cThis involves understanding how fast ideas are tested through experiments, built into working software, and eventually delivered as features to customers.\u201d The system should be developed to shine a light on each stage of the journey, making it visible and measurable across the organization. \u201cImplementing these metrics allows the organization to become \u2018dataful,\u2019 measuring not only product success but also instrumenting and improving the work itself.\u201d\n\nMore on KPIs and metrics:","wordCount":1993,"image":["https:\/\/www.cio.com\/wp-content\/uploads\/2025\/03\/219666-0-79347400-1742292201-shutterstock_2140347409.jpg?quality=50&strip=all"],"datePublished":"2019-01-23T11:00:00-05:00","dateModified":"2025-03-18T03:03:09-07:00","keywords":"IT Leadership,IT Strategy","mainEntityOfPage":"https:\/\/www.cio.com\/article\/219666\/9-key-metrics-for-it-success.html"}]</script> <style> :root { --nativo-loader-color: #c22521; --sponsored-links--border-bottom-color: #9d9490; } </style> <link rel="shortcut icon" href="https://www.cio.com/wp-content/themes/cio-b2b-child-theme/src/static/img/favicon.ico" type="image/x-icon"/> <style> :root { /*Host Speaker Profile*/ --host-speaker-profile-heading-color: #141414; --host-speaker-profile-heading-font-family: inherit; --host-speaker-profile-title-description-font-family: inherit; --host-speaker-title-color: #808080; 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format-standard has-post-thumbnail category-it-leadership category-it-strategy languages-en editions-global publication-cio publication-us-default story_types-feature article_type-default origin-onecms"> <section class="article"> <div class="container grid entry-content "> <div class="col-12 col-10@md col-8@lg"> <div class="core"> <div class="article__main"> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg "> <div class="article-column__content"> <div class="core"> <h2 class="content-subheadline"> IT departments are swimming in metrics meant to measure their effectiveness, but this compact collection of essential KPIs provides a true foundation for measuring IT success. </h2> <p></p> </div> <div class="media-with-label"> <figure> <div class="image"> <img width="1024" height="576" src="https://www.cio.com/wp-content/uploads/2025/03/219666-0-79347400-1742292201-shutterstock_2140347409.jpg?quality=50&strip=all&w=1024" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="Conference Business Meeting Presentation: CEO Businessman Shows Data to Group of Investors, Businessspeople. Projector Screen Shows Graphs, Product Sales, Revenue Growth Strategy, e-Commerce Analysis" data-hero="" loading="eager" decoding="async" fetchpriority="high" srcset="https://www.cio.com/wp-content/uploads/2025/03/219666-0-79347400-1742292201-shutterstock_2140347409.jpg?quality=50&strip=all 5120w, https://www.cio.com/wp-content/uploads/2025/03/219666-0-79347400-1742292201-shutterstock_2140347409.jpg?resize=300%2C168&quality=50&strip=all 300w, https://www.cio.com/wp-content/uploads/2025/03/219666-0-79347400-1742292201-shutterstock_2140347409.jpg?resize=768%2C432&quality=50&strip=all 768w, https://www.cio.com/wp-content/uploads/2025/03/219666-0-79347400-1742292201-shutterstock_2140347409.jpg?resize=1024%2C576&quality=50&strip=all 1024w, https://www.cio.com/wp-content/uploads/2025/03/219666-0-79347400-1742292201-shutterstock_2140347409.jpg?resize=1536%2C864&quality=50&strip=all 1536w, https://www.cio.com/wp-content/uploads/2025/03/219666-0-79347400-1742292201-shutterstock_2140347409.jpg?resize=2048%2C1152&quality=50&strip=all 2048w, https://www.cio.com/wp-content/uploads/2025/03/219666-0-79347400-1742292201-shutterstock_2140347409.jpg?resize=1240%2C697&quality=50&strip=all 1240w, https://www.cio.com/wp-content/uploads/2025/03/219666-0-79347400-1742292201-shutterstock_2140347409.jpg?resize=150%2C84&quality=50&strip=all 150w, https://www.cio.com/wp-content/uploads/2025/03/219666-0-79347400-1742292201-shutterstock_2140347409.jpg?resize=854%2C480&quality=50&strip=all 854w, https://www.cio.com/wp-content/uploads/2025/03/219666-0-79347400-1742292201-shutterstock_2140347409.jpg?resize=640%2C360&quality=50&strip=all 640w, https://www.cio.com/wp-content/uploads/2025/03/219666-0-79347400-1742292201-shutterstock_2140347409.jpg?resize=444%2C250&quality=50&strip=all 444w" sizes="(max-width: 1024px) 100vw, 1024px" /> </div> <div class="media-with-label__label"> Credit: Gorodenkoff / Shutterstock </div> </figure> </div> </div> </div> </div> <div id="remove_no_follow"> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="article-column__content"> <section class="wp-block-bigbite-multi-title"><div class="container"></div></section> <p>IT leaders are <a href="https://www.cio.com/article/401955/7-ways-to-avoid-being-misled-by-metrics.html">drowning in metrics</a>, with many finding themselves up to their KPIs in a seemingly bottomless pool of measurement tools. The result is wasted time, confusion, and, in some cases, conflicting insights.</p> <p>There are <a href="https://www.cio.com/article/222631/4-kpis-it-should-ditch-and-what-to-measure-instead.html">several important metrics</a> that can be used to achieve IT success, says Jonathan Nikols, senior vice president of global enterprise sales for the Americas at Verizon. “To name a few — products and services that are delivered on time and on budget, and overall IT ROI.” The most effective approach to achieve success, he adds, is to study metrics across all adoption performance areas. “Metrics provide a means to monitor progress.”</p> <p>For the CIO assembling an analysis package that enterprise leaders can use to glean IT’s impact on transformations and operations, metrics minimalism is key. Avoid clutter and confusion to instead focus on a core set of fundamental metrics that provide clear insight into critical issues and challenges. While additional analysis tools can be added over time to augment and illuminate important trends, it’s best to begin with just a few basic tools.</p> </div> </div> </div> <div class="show@md"> <div class="grid grid--cols-10@md grid--cols-8@lg"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="advert advert--bleed-right"> <div class="advert__container"> <div class="advert__content"> <div class="ad page-ad has-ad-prefix ad-article" data-ad-template="article" data-ofp="false"></div> </div> </div> </div> </div> </div> </div> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="article-column__content"> <p>Here’s a look at the fundamental metrics that stand out for accurately measuring IT success and should have a home in every CIO’s analysis toolkit.</p> <aside class="jwPlayer--floatingContainer" role="complementary" data-nosnippet> <div id="jwplayer--floatingVideo" class="jwplayer" data-media-id="RJ7rih4g"> </div> </aside> <h2 class="wp-block-heading" id="1-return-on-investment">1. Return on investment</h2> <p>As it has for years, return on investment (ROI) continues to be the central metric associated with transformation. “Transformation is all about doing business differently and generating value,” says Lou DiLorenzo, US CIO and CDAO program leader at Deloitte Consulting. Besides providing insight into value, ROI, when performed correctly, will highlight the joint ownership between business and IT that’s necessary to bring transformation to life.</p> <p>Project ROI should never be defined by a single IT project manager working in a vacuum, DiLorenzo cautions. Planning should always be a joint effort. Under this arrangement, business users own the numerator — essentially the reason why the transformation project launched — to increase sales volume, optimize margin through pricing, and so on. IT, meanwhile, owns the denominator — the cost to deliver the work on time, on budget, and with high quality.</p> </div> </div> </div> <div class="show@md"> <div class="grid grid--cols-10@md grid--cols-8@lg"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="advert advert--bleed-right"> <div class="advert__container"> <div class="advert__content"> <div class="ad page-ad has-ad-prefix ad-article" data-ad-template="article" data-ofp="false"></div> </div> </div> </div> </div> </div> </div> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="article-column__content"> <p>“Each side needs to deliver on their obligation for the project to be successful, and piling up a number of successful, value-creating projects will help transform a business,” DiLorenzo says.</p> <h2 class="wp-block-heading" id="2-business-value-delivered">2. Business value delivered</h2> <p>Closely related to ROI is business value delivered. “This is the most relevant metric for the business, and it helps to justify the investment needed by the IT organization to drive the transformation initiative,” says Sameer Bhagwat, vice president and head of IT consulting firm Capgemini Americas’ Applications Managed Services Center of Excellence.</p> <p>Specific IT transformation projects are frequently linked to overall enterprise <a href="https://www.cio.com/article/230425/what-is-digital-transformation-a-necessary-disruption.html">digital transformation</a> initiatives. But the success of these projects can still be measured by the traditional metrics of project costs — implementation timelines, functionality delivered, and so on. “The true measure of success is based on the business value delivered,” Bhagwat says.</p> </div> </div> </div> <div class="show@md"> <div class="grid grid--cols-10@md grid--cols-8@lg"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="advert advert--bleed-right"> <div class="advert__container"> <div class="advert__content"> <div class="ad page-ad has-ad-prefix ad-article" data-ad-template="article" data-ofp="false"></div> </div> </div> </div> </div> </div> </div> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="article-column__content"> <p>According to Bhagwat, the ability to directly link IT transformation to business benefits will foster <a href="https://www.cio.com/article/189640/7-steps-for-better-business-it-collaboration.html">greater collaboration between business and IT leaders</a>. “It also enables better governance on transformation initiatives, since initiatives that drive higher value for the business get prioritized.”</p> <p>Business benefits can be quantified in three dimensions, Bhagwat says — revenue improvement, cost reduction, or working capital improvement. “This allows for easy comparisons across initiatives to identify those that deliver the maximum transformation benefits,” he states. “Quantifying the expected business value of an IT initiative forces the IT teams to better understand the implications and impact of the transformation initiative they are implementing.”</p> <h2 class="wp-block-heading" id="3-rate-of-change">3. Rate of change</h2> <p>“The most important metric for IT success is rate of change,” says Nicolas Avila, CTO for North America at IT and software development company Globant.</p> </div> </div> </div> <div class="show@md"> <div class="grid grid--cols-10@md grid--cols-8@lg"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="advert advert--bleed-right"> <div class="advert__container"> <div class="advert__content"> <div class="ad page-ad has-ad-prefix ad-article" data-ad-template="article" data-ofp="false"></div> </div> </div> </div> </div> </div> </div> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="article-column__content"> <p>Avila observes that many IT leaders will default to ROI as the most important metric because there’s strong belief that <a href="https://www.cio.com/article/409571/5-tips-for-maximizing-roi-of-it-projects.html">a good ROI</a> is necessary to get the most out of the technology spend.</p> <p>“That’s key, but something that leaders don’t fully realize is that the speed in which we can create change not only allows us to react faster, but also helps reduce our fear of failing,” Avila explains. “Failing isn’t as critical when your IT department is going to quickly and constantly change and improve.”</p> <p>The rate-of-change metric helps destigmatize failure, and if failure is unavoidable, it’s important to fail fast, Avila advises. “Most companies think of failure as something they want to avoid, but really fast-changing organizations understand failures as a step towards success.”</p> </div> </div> </div> <div class="show@md"> <div class="grid grid--cols-10@md grid--cols-8@lg"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="advert advert--bleed-right"> <div class="advert__container"> <div class="advert__content"> <div class="ad page-ad has-ad-prefix ad-article" data-ad-template="article" data-ofp="false"></div> </div> </div> </div> </div> </div> </div> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="article-column__content"> <p>Every leader and every team should use rate of change to determine how quickly they can turn around a particular change, Avila recommends. “Many managers are measured by their production rather than their speed of evolution, and that’s an issue in the modern world,” he notes. “You have to have a good measure of which teams need to move fast and what they are really achieving.”</p> <p>Avila says it’s also important to understand that that the rate-of-change metric doesn’t only live within the IT department — it also informs business leaders. “Businesses should work hand in hand with their IT department to pivot quickly in order to maximize success,” he concludes.</p> <h2 class="wp-block-heading" id="4-application-delivery-success">4. Application delivery success</h2> <p>How well an IT organization can deliver critical business applications is an essential metric, says Song Pang, senior vice president of engineering at network automation technology provider NetBrain Technology. “Most modern applications are comprised of many distributed services working together,” he notes. “Each micro-service must be able to be delivered as the enterprise architect designed.”</p> </div> </div> </div> <div class="show@md"> <div class="grid grid--cols-10@md grid--cols-8@lg"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="advert advert--bleed-right"> <div class="advert__container"> <div class="advert__content"> <div class="ad page-ad has-ad-prefix ad-article" data-ad-template="article" data-ofp="false"></div> </div> </div> </div> </div> </div> </div> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="article-column__content"> <p><a href="https://www.cio.com/article/250267/7-steps-to-excellent-service-delivery.html">Service delivery success</a> relative to service usage volume is a directional metric, Pang states. “This metric becomes more successful as increasing effort is expended to reduce problems before they are reported.”</p> <p>Discovering issues before they are noticed should be a fundamental goal any IT organization has, and comparing its value month after month will determine if IT is improving at delivering services.</p> <h2 class="wp-block-heading" id="5-it-and-business-team-engagement">5. IT and business team engagement</h2> <p>Matt Mead, CTO of tech consulting firm SPR, believes that IT and business team engagement is a powerful metric for measuring transformation success. “We know teams experience psychological development through forming, storming, norming, and performing,” he says. “We also know it takes time for joint business and technical teams, typically created for an organizational transformation, to gel and get into a groove.”</p> </div> </div> </div> <div class="show@md"> <div class="grid grid--cols-10@md grid--cols-8@lg"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="advert advert--bleed-right"> <div class="advert__container"> <div class="advert__content"> <div class="ad page-ad has-ad-prefix ad-article" data-ad-template="article" data-ofp="false"></div> </div> </div> </div> </div> </div> </div> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="article-column__content"> <p>Mead notes that he frequently sees clients failing to allot sufficient time for transformative changes to settle into place. Instead, poorly engaged IT and business project leaders declare success and move on, prematurely, to the next transformation stage.</p> <div id="nativo-1" class="nativo"></div> <p>“The best metric, especially during the first year of a transformation, is to measure the engagement level from all team business and IT team members,” he advises. “If engagement is high, you have the foundation upon which to be successful,” Mead says. “If engagement is low, your transformation is flawed, and failure is likely.”</p> <h2 class="wp-block-heading" id="6-customer-experience-quality">6. Customer experience quality</h2> <p>While a digital transformation initiative may include a variety of goals, such as enhanced productivity, larger market share, or optimized operational costs, success is ultimately defined by a single thing: how do customers feel about the enterprise’s brand, product, or service, says Milind Damle, principle at digital-first technology services firm Apexon. “If your digital transformation initiatives don’t improve the quality of the customer experience, are they really meaningful in achieving consistent top-line growth?” he asks. </p> </div> </div> </div> <div class="show@md"> <div class="grid grid--cols-10@md grid--cols-8@lg"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="advert advert--bleed-right"> <div class="advert__container"> <div class="advert__content"> <div class="ad page-ad has-ad-prefix ad-article" data-ad-template="article" data-ofp="false"></div> </div> </div> </div> </div> </div> </div> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="article-column__content"> <p>Damle notes that numerous reports over the years have discovered that customers place experience over price when making a brand decision. “This makes customer experience the most important metric in measuring the success of any transformation initiative,” he states.</p> <h2 class="wp-block-heading" id="7-end-user-satisfaction">7. End-user satisfaction</h2> <p>End-user satisfaction offers insight into how well IT services are aligning with user expectations, needs, and perceptions. High satisfaction leads to increased IT trust, reduces shadow IT, encourages collaboration with business leaders, and improves employee retention, ultimately leading to more efficient and effective operations, says Chris Karalis, a director with technology research and advisory firm ISG.</p> <p>Ensuring end-user satisfaction begins with periodic surveys to collect user feedback. “These surveys should address multiple facets of a user’s IT experience, including satisfaction with technology devices, applications, connectivity, and support,” Karalis, advises. Additionally, the surveys should be conducted across the entire user population to ensure that no one is overlooked.</p> </div> </div> </div> <div class="show@md"> <div class="grid grid--cols-10@md grid--cols-8@lg"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="advert advert--bleed-right"> <div class="advert__container"> <div class="advert__content"> <div class="ad page-ad has-ad-prefix ad-article" data-ad-template="article" data-ofp="false"></div> </div> </div> </div> </div> </div> </div> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="article-column__content"> <p>ISG suggests administering surveys annually, along with periodic brief transaction canvasses following various user interactions, such as service requests, bug fixes, and incident resolutions, to continually monitor satisfaction trends. “IT then needs to analyze the data to identify potential issues in how IT services are delivered, and which user groups are most impacted,” Karalis says. He adds that IT leaders need to address pain points with actionable results or users may stop providing input and, over the long term, become more disgruntled with IT services.</p> <p>The end-user satisfaction metric’s strength lies in the fact that it touches all parts of the IT organization. “While some components face users more directly, all service areas have dependencies that impact users in some way,” Karalis says. Satisfaction metric results should be shared with both IT and business leaders, and action plans should be developed by C-level executives and IT service leads.</p> <h2 class="wp-block-heading" id="8-technical-debt-index">8. Technical debt index</h2> <p>Excessive <a href="https://www.cio.com/article/201502/8-tips-for-reducing-technical-debt-without-killing-operations.html">technical debt</a> can fatally damage even the most promising transformation initiative. When a project is developed and deployed in a rush, quality often suffers and the venture must inevitably be revisited to repair compatibility problems, security gaps, performance issues, and various other budget-draining headaches, says Shafqat Azim, partner, digital strategy and solutions at technology research and advisory firm ISG. Azim believes that technical debt is the biggest inhibitor to successful agility and transformation. “Managing technical debt actively as part of operations ensures an organization can transform as needed, when needed,” he states.</p> </div> </div> </div> <div class="show@md"> <div class="grid grid--cols-10@md grid--cols-8@lg"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="advert advert--bleed-right"> <div class="advert__container"> <div class="advert__content"> <div class="ad page-ad has-ad-prefix ad-article" data-ad-template="article" data-ofp="false"></div> </div> </div> </div> </div> </div> </div> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="article-column__content"> <p>Azim suggests using a technical debt index to measure and track spending. “At a strategic level, the most important metric is the percentage of the overall technology budget being allocated to transformation,” he says. “It’s imperative to measure the percentage of the technology budget being allocated toward three areas: running the business, enabling incremental innovation, and enabling disruptive innovation.” At a tactical level, measuring transformation throughput and velocity of transformation is critical, he adds.</p> <h2 class="wp-block-heading" id="9-a-combination-of-speed-quality-and-value">9. A combination of speed, quality, and value</h2> <p>When merged, speed, quality, and value metrics are essential for any organization undergoing transformation and looking to move away from traditional project management approaches, says Sheldon Monteiro, chief product officer at digital consulting firm Publicis Sapient. “This metric isn’t limited to a specific role or level within an IT organization,” he explains. “It’s relevant for everyone involved in the product development process.”</p> <div id="nativo-2" class="nativo"></div> <p>Speed, quality, and value metrics represent a shift from traditional project management metrics focused on time, scope, and cost. “Speed ensures the ability to respond swiftly to change, quality guarantees that changes are made without compromising the integrity of systems, and value ensures that the changes contribute meaningfully to both customers and the business,” Monteiro says. “This holistic approach aligns IT practices with the demands of a continuously evolving landscape.”</p> </div> </div> </div> <div class="show@md"> <div class="grid grid--cols-10@md grid--cols-8@lg"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="advert advert--bleed-right"> <div class="advert__container"> <div class="advert__content"> <div class="ad page-ad has-ad-prefix ad-article" data-ad-template="article" data-ofp="false"></div> </div> </div> </div> </div> </div> </div> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="article-column__content"> <p>Focusing on speed, quality, and value provides a more nuanced understanding of an organization’s adaptability and effectiveness. “Focusing on speed, quality, and value provides insights into an organization’s ability to adapt to continuous change,” Monteiro says. “It measures how quickly ideas can be transformed into tangible results while ensuring quality and delivering value to customers and the business.”</p> <p>The best way to apply this metric is by measuring the entire journey, starting from the generation of ideas, Monteiro says. “This involves understanding how fast ideas are tested through experiments, built into working software, and eventually delivered as features to customers.” The system should be developed to shine a light on each stage of the journey, making it visible and measurable across the organization. “Implementing these metrics allows the organization to become ‘dataful,’ measuring not only product success but also instrumenting and improving the work itself.”</p> <p><strong>More on KPIs and metrics:</strong></p> </div> </div> </div> <div class="show@md"> <div class="grid grid--cols-10@md grid--cols-8@lg"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="advert advert--bleed-right"> <div class="advert__container"> <div class="advert__content"> <div class="ad page-ad has-ad-prefix ad-article" data-ad-template="article" data-ofp="false"></div> </div> </div> </div> </div> </div> </div> <div class="grid grid--cols-10@md grid--cols-8@lg article-column"> <div class="col-12 col-10@md col-6@lg col-start-3@lg"> <div class="article-column__content"> <ul class="wp-block-list"> <li><a href="https://www.cio.com/article/1296705/digital-kpis-the-secret-to-measuring-transformational-success.html">Digital KPIs: The secret to measuring transformational success</a></li> </ul> <ul class="wp-block-list"> <li><a href="https://www.cio.com/article/407204/7-kpis-for-customer-centric-it.html">7 KPIs for customer-centric IT</a></li> <li><a href="https://www.cio.com/article/308844/the-hard-truth-of-it-metrics.html">The hard truth of IT metrics</a></li> <li><a href="https://www.cio.com/article/401955/7-ways-to-avoid-being-misled-by-metrics.html">Misled by metrics: 7 KPI mistakes IT leaders make</a></li> <li><a href="https://www.cio.com/article/408921/bad-metrics-are-worse-than-no-metrics.html">Bad metrics are worse than no metrics</a></li> <li><a href="https://www.cio.com/article/230954/you-re-probably-focused-on-the-wrong-metrics-here-s-how-to-fix-that.html">You’re probably focused on the wrong metrics. 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