Chapter Four

Measuring Success of strategic initiatives

1. Definition of metrics

-Metrics is a measurement by which is efficiency, performance, progress or quality of a plan, process or product can be assessed.

2. Efficiency and effectiveness

Efficiency	Effectiveness
§  Measure the performance of the IT system itself including throughput, speed and availability.	§   Measure the impact IT has on business       processes and activities including customer satisfaction, conversion rates and self-through increases.
§  Getting the most from each resource.	§  Setting the rights goals and objectives and   ensuring they are accomplished.
§  Focuses on the extent to which on organization   is using its resource in an optimal way.	§  Focuses on how well an organization  is achieving its goal and objectives.

3. Benchmarking

A process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and procedures to improve system performance.

4. Interrelationship of efficiency and effectiveness IT metrics

Efficiency IT metrics focus on technology and include :





Effectiveness IT metrics focus on an organization's goals, strategies and objectives and include :

5. Metrics for strategic initiatives