A presentation I delivered in 2006 at The Royal Society for the Encouragement of Arts, Manufactures and Commerce (RSA), a London-based, British organisation committed to finding practical solutions to social challenges.
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25 may 2006_measurement_00
1. 息 LOCRIS Limited 2006息 LOCRIS Limited 2006
Uses and Abuses of ITUses and Abuses of IT
BenchmarkingBenchmarking
Outsourcing and ProcessOutsourcing and Process
ImprovementImprovement
John L. Evans John L. Evans FCMI FIMC FIMIS MBCS CITP MID CIPSFCMI FIMC FIMIS MBCS CITP MID CIPS
Director LOCRIS LimitedDirector LOCRIS Limited
2. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
LOCRISLOCRIS
DWPDWP
Cap GeminiCap Gemini
RS ComponentsRS Components
Royal & SunAllianceRoyal & SunAlliance
AXAAXA
AT&TAT&T
The PruThe Pru
Wincor NixdorfWincor Nixdorf
WoolworthsWoolworths
Centrica / British GasCentrica / British Gas
British Energy PETBritish Energy PET
BTBT
BABA
Rover GroupRover Group
BBCBBC
Boots The ChemistBoots The Chemist
LIFFELIFFE
BNP ParibasBNP Paribas
BSiBSi
BG plc TranscoBG plc Transco
SEMA GroupSEMA Group
Legal Aid BoardLegal Aid Board
Legal & GeneralLegal & General
UK National LotteryUK National Lottery
PA ConsultingPA Consulting
United UtilitiesUnited Utilities
GlaxoGlaxo
INMARSATINMARSAT
BACSBACS
3. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
Is there really value inIs there really value in
Outsourcing your issues?Outsourcing your issues?
Outsourcing - a short cut to improvement?Outsourcing - a short cut to improvement?
suppliers and their promisessuppliers and their promises
customer's termscustomer's terms
governance and objectivitygovernance and objectivity
how will you ever knowhow will you ever know
benchmark databenchmark data
the ability to rapidly realise benefitsthe ability to rapidly realise benefits
4. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
"When you can measure what you"When you can measure what you
are speaking about, and express itare speaking about, and express it
in numbers, you know somethingin numbers, you know something
about it; but when you cannotabout it; but when you cannot
measure it, when you cannotmeasure it, when you cannot
express it in numbers, yourexpress it in numbers, your
knowledge is of a meagre andknowledge is of a meagre and
unsatisfactory kind; it may be theunsatisfactory kind; it may be the
beginning of knowledge, but youbeginning of knowledge, but you
have scarcely in your thoughtshave scarcely in your thoughts
advanced to the state of Science,advanced to the state of Science,
whatever the matter may be." -whatever the matter may be." -
Lord KelvinLord Kelvin
5. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
IT performance measuresIT performance measures
ineffectiveineffective John Riley 23 May 2006John Riley 23 May 2006
current measures ineffectivecurrent measures ineffective
fewer measuresfewer measures
stop measuring cost and activitystop measuring cost and activity
measure efficiency, output and outcomemeasure efficiency, output and outcome
no value in value-add or ROIno value in value-add or ROI
IT cost vs profit or turnoverIT cost vs profit or turnover
cost reduction not a good indicatorcost reduction not a good indicator
6. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
IT performance measuresIT performance measures
ineffectiveineffective John Riley 23 May 2006John Riley 23 May 2006
IT is (generally) not a revenue generatorIT is (generally) not a revenue generator
IT provides things that cant be measuredIT provides things that cant be measured
fewer, more effective measuresfewer, more effective measures
dont leave a vacuumdont leave a vacuum
others will set measurements for youothers will set measurements for you
communicate with peerscommunicate with peers
link to organisational objectiveslink to organisational objectives
be credible to the top teambe credible to the top team
7. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
Scenario 1Scenario 1
Suppose:Suppose:
450 AMS / Development staff450 AMS / Development staff
贈25M / annum cost base贈25M / annum cost base
Demanding, rapidly changingDemanding, rapidly changing
organisation and customers (users)organisation and customers (users)
Morbidity in the departmentMorbidity in the department
No performance dataNo performance data
8. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
Scenario 2Scenario 2
Suppose:Suppose:
450 AMS / Development staff450 AMS / Development staff
贈25M / annum cost base贈25M / annum cost base
Demanding, rapidly changingDemanding, rapidly changing
organisation and customers (users)organisation and customers (users)
Morbidity in the departmentMorbidity in the department
Existing performance data functionExisting performance data function
point analysis going back some yearspoint analysis going back some years
9. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
ConsiderConsider
2 scenarios2 scenarios
Without performance dataWithout performance data
With performance dataWith performance data
10. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
Once Upon a TimeOnce Upon a Time
A companyA company
With 5 years performance dataWith 5 years performance data
UnhappyUnhappy
Outsourced because it didnt knowOutsourced because it didnt know
how to improvehow to improve
11. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
The DreamThe Dream
From day 1:From day 1:
25% improvement in year 125% improvement in year 1
Progressing to upper quartileProgressing to upper quartile
From a standing startFrom a standing start
12. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
The RealityThe Reality
Productivity 20% down in year 1Productivity 20% down in year 1
And year 2And year 2
Par by year 3Par by year 3
Improving byImproving by
13. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
Sadness AboundsSadness Abounds
The QueenThe Queen
shouted at theshouted at the
KnightKnight
The KnightThe Knight
Laughed at Queen!Laughed at Queen!
The Knight had aThe Knight had a
ContractContract
What could theWhat could the
Queen do?Queen do?
14. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
The Happy EndingThe Happy Ending
With Performance Data enabled:With Performance Data enabled:
measurement of the actual changemeasurement of the actual change
measurement of the actual lossmeasurement of the actual loss
prediction of the actual prognosisprediction of the actual prognosis
Renegotiation of the contractRenegotiation of the contract
achievement of the intended savings /achievement of the intended savings /
productivity improvementsproductivity improvements
stay out of courtstay out of court
16. Software
Measurement and
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息 LOCRIS Limited 2006息 LOCRIS Limited 2006
MineseekerMineseeker
It will take hundreds ofIt will take hundreds of
years and 贈B to clearyears and 贈B to clear
70 countries affected70 countries affected
Man takes a day to surveyMan takes a day to survey
404022
mtrsmtrs
Mineseeker airship take 1Mineseeker airship take 1
second to survey 100second to survey 10022
mtrsmtrs
www.mineseeker.comwww.mineseeker.com