Every business has revenue, but IT typically doesn't ... because we don't have the discipline to capture the benefit of projects in a way that we can show the CEO or executive committee and have numbers that are real.
HP's revenue of IT figures come out of an annual planning process where business units, finance, and IT teams agree on the benefits a project is supposed to deliver. That gives the numbers credibility. To Mott, the critical factor for measuring IT's value isn't the exact metrics a company uses. It's that everyone in the company uses the same yardstick.
But it's not easy to get to that point, and the article explores the obstacles. Some HP business units didn't want to use the cost-benefit analysis process and centralized IT planning. That meant IT had to hold its ground -- "don't blink" -- that every IT project had to go through this cost-benefit analysis and planning process. And that required support from the very top of the company.
We'd love to hear from you on the different ways your company is tracking the value of IT projects. Is tracking that value seen as important in your companies? And do those values have credibility in an executive committee discussion, just like revenue of a business unit?