Measuring Value In IT Development Requires A Correction Action Board
Regardless of whether you believe the studies, articles, or discussions, all IT organizations suffer from some form and degree of over-budget development projects, or developments that are delivered late or cancelled, or developments that provide less than expected functionality or value to the business. To fix this requires IT projects to be treated as Business projects in a holistic, integrated approach with proper integrated project management and with quality assurance, as the problems extend beyond the boundaries of the IT organization, involving other business functions, the customers, users, and stakeholders. IT organizations that do measure themselves are often focused on specific measures such as KPIs that don't necessarily provide value in measuring and analyzing them. They often don't show information useful to helping fix the problems and often result in the wrong people being blamed. The result is a tendency to want to throw the baby (measuring cost, schedule, quality, and value) out with the bath water (KPIs and other specific measures). But IT organizations and the rest of the business needs to pay attention to cost, schedule, quality and value, whether they want to or not. There is no way out of that if they are to be successful. IT organizations therefore need to determine better specific measures to measure themselves by, but more importantly, they need a Quality Assurance process that serves to provide the mechanism to assure the value in the measures, the evaluation of the analysis of the metrics by all stakeholders, the identification of systemic issues, the assignment of actions to correct the systemic issues, and the follow up to the corrective actions to assure they are effective. This can be easily achieved through the establishment of a Corrective Action Board (CAB). The CAB is where the evaluation of the metric analysis is done in front of all stakeholders. It is also where the value in the development is determined as it is where the degree of satisfaction or dissatisfaction is voiced and heard along with the metrics, the analysis, the evaluation, the determination and assignment of the corrective actions, and the effectiveness of the actions taken. The CAB is where value is determined, not in a measurement, an analysis or in a KPI.