How aligned are you with the business? Do you consider revenue impact when completing benefits estimates? Do your ROI practices support IT/business alignment or hinder it? This article from CIO Update discusses the results of a recent survey of 370 IT executives. The findings show that only 29% of CIOs who do not work alongside the business include revenue impact on business estimates. Furthermore, 65% of CIOs who do not collaborate with the business when developing IT benefits say IT/business alignment has worsened because of their ROI practices. An intelligent tip in increasing your IT/business alignment is to avoid putting measurements into dollars. Consider instead using metrics that highlight the effects of the initiative:
To isolate the true impact of the IT solution being proposed, it is critical that you identify measures that will be directly affected by the specific IT application being evaluated. Try to avoid measures that could be influenced by other, concurrent business projects.
Take for example, the deployment of a new order processing system. Sample mid-state metrics for this IT application could include the number of orders processed daily by an order specialist or the number of orders accurately recorded the first time.
The article goes on to explain that IT must estimate the impact to the business metrics: using an “as-is” measurement and then comparing that to the possible or achieved changes realized due to the project. This will help the business understand how your project has directly influenced their ability to achieve business goals.