Proceedings

We considered this as well, by using the balanced scorecard as a pilot instrument, an
array of economic and financial indicators (short-term monitoring instruments) -
goals, to identify failures in time, but at the same time to serve as a transparent
reporting to all stakeholders.
BSC was drawn into a series of influential articles and business bestsellers (especially
Kaplan & Norton, 1992, 1996), which now form the basis of a major consulting
industry and a set of organization practices. Society was fascinated by the concept of a
strategic planning and performance measurement system, which is now translated into
a multitude of specific practices, compiled today in a Balanced Scorecard.
We chose the IT sector because the challenges are greater when it comes to
performance management, which make it difficult to conclude if the existing
performance serves the strategic objectives. At least in principle, the IT organisations
measure, monitor and act according to the information they collect by applying a
variety of systems and performance management techniques. However, these tend to
measure technical performace. Information pertaining to non-technical performance is
rarely considered, especially data that allows managers to establish whether projects
unfold as planned. There are clues regarding potential performance problems, such as
projects that require the management’s intervention or initiatives that have already
been taken to ensure that problems are solved.
3. THE PRACTICAL SOLUTION
The idea of forging a balanced scorecard to measure IT efficiency is not a new one, as
it has been implemented succesfully by numerous IT corporations. The key to
successfully executing this idea is the ability to clearly view the connection between
IT objectives and goals (as seen by a Chief Information Officer (CIO)) and broad
business goals and objectives (as seen by a Chief Executive Officer (CEO)). This
connection is not invariably obvious. A process for managing performance to reveal
both technical and volatile measures must be painstakingly built. This means
collecting data relevant to performance regarding critical performance measures,
analysing information to define „the objective,” establishing targets relevant for each
measure, frequent monitoring to determine potential driftage, discussing issues with
higher tier management and implementing adequate reforms. This process, however,
cannot work properly without appropriate performance measures (technical and nontechnical)
which will help identify key areas, which require improvement.
Among some of many obstacles facing management, teams are the following:
• dwindling product cycles
• recruiting, rewarding and maintaining talents
• operating and transmiting critical development decisions
• following the demand and supplying the right products
• the emergence of new technologies which invalidate existing products
• unforseen vulnerabilities related to the enterprises’ systems
• undetected threats with dire consequences over the business
To meet the demands of the sector, we can design a strategic planning and
performance management system in the form of a hybrid balanced scorecard, to
incorporate both aspects relating to IT strategic management as well as business
management.
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