ITFM Pathway To Success: Step 7 – Benefits Realisation
ITFM Pathway To Success: Step 7 – Benefits Realisation
The ITFM Pathway to Success framework is specifically designed to assist CIOs, CFOs, IT Finance leaders, and their respective teams. To achieve the true benefits of implementing ITFM processes and best practices, a series of planned and measured steps must be executed methodically over time.
Step 1 focused on assessing and planning, reviewing the IT strategic plan, and aligning it with the business strategy. In Step 2, services were defined to ensure transparent IT service charges. Step 3 ensured high-quality service consumption and cost data to achieve cost transparency and implement showback/chargeback to the business. Step 4 emphasized the importance of automating these processes. Step 5 focused on service costing and benchmarking, while Step 6 detailed the implementation of chargeback. Now, in Step 7, we focus on benefits realisation.
Understanding Benefits Realisation
What is Benefits Realisation?
Benefits realisation is the process of measuring whether the expected benefits and goals of an ITFM project have been achieved. It is not a one-time event but a continuous process that should be integrated into the company’s performance management program.
Importance of Continuous Measurement
Consistent and frequent measurement and reporting of progress against goals significantly improve the chances of achieving those goals. Studies across various industries confirm that “what gets measured, gets done.”
Steps to Effective Benefits Realisation
Setting Realistic Goals and Objectives
For benefits realisation to be effective, organisations must set well-defined and realistic goals. These goals should have been established in Step 1 and might include improving IT customer satisfaction scores or reducing costs by a specific percentage.
Measuring Customer Satisfaction
A key component of benefits realisation is measuring customer satisfaction. This involves:
- Selecting key business leaders who use IT services.
- Creating a concise survey with no more than five questions focused on cost, value, and quality of service delivery.
- Using a five-point rating scale to quantify satisfaction levels.
Implementing the Benefits Realisation Process
Conducting Initial and Follow-up Surveys
Initial customer satisfaction surveys should have been conducted in Step 1. After completing the ITFM improvement project, conduct follow-up surveys with the same participants and questions to compare results and measure improvement.
Analysing Results and Taking Corrective Action
Analyse the survey data to determine if the ITFM goals have been met. If the results do not show significant improvement, develop a plan for corrective action.
Expert Insights From Pete Hidalgo
Pete Hidalgo is a recognised IT Financial Management (ITFM) expert with over 25 years of experience. He developed the ITFM Pathway To Success framework and implemented significant cost-saving processes at a Fortune 100 company. Pete also led ITFM initiatives at Ernst & Young and taught ITFM courses at EY University. He now focuses on enhancing MagicOrange’s presence in the US and educating organisations on ITFM benefits.
Role of MagicOrange in Benefits Realisation
Expert Guidance and Support
MagicOrange provides expert guidance in developing and analysing surveys. Our team ensures the right questions are asked, and the right feedback is captured for accurate benefits realisation.
Ensuring Objective Feedback
Having MagicOrange as an impartial third party ensures unbiased feedback, which helps build trust between IT and business units.
Achieving ITFM Success with MagicOrange
Driving Cost Optimisation and Value
MagicOrange helps organisations systematically approach cost savings and value creation by providing a holistic perspective on IT supply and business demand.
Organisations are encouraged to leverage MagicOrange for their ITFM journey. Benefits realisation is crucial for achieving ITFM success and driving cost optimisation throughout the organisation.
By following the MagicOrange ITFM Pathway to Success framework, businesses can systematically and holistically approach savings initiatives, ensuring that both IT supply and business demand are optimised for long-term success.