Step 2.2 - ITBusiness Alignment Measurement Tool by InfoTech


Aligning IT & Business Goals – Step-by-Step Program The purpose of Business& IT Alignment is to optimize the value that IT contributes to the enterprise. Use this step-by-step program – rich with proven tools & research - as the first step to successfully outlining a strategic roadmap for your organization. An organization has successfully aligned IT strategy to business strategy when there is: • A shared understanding of how IT applications, technologies and services will contribute to business objectives – today and in the future. • A shared focus on where to expend scarce resources, time and money; the tradeoffs the enterprise is prepared to make. • A credible working relationship between the IT organization and the rest of the business evidenced by reliable daily operations, responsive problem management and predictable, innovative solution delivery. Info-Tech’s Aligning IT & Business Goals program includes tools & related research to complete three main steps: 1. Set Conditions to Achieve Alignment 2. Determine IT Value Imperatives 3. Assess IT Organizational Alignment 4. Develop IT Vision and Mission When you have completed our Aligning IT & Business Goals program you will have: • Support from key executives to participate in developing the IT Strategy. • An understanding of how emerging technologies, applications and trends can or will impact your enterprise and your IT organization. • Clear expectations of how IT will contribute to reaching the company’s business goals and objectives. • A defined articulation of IT’s role in, and value to, the enterprise for the strategic horizon.

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									                                                         Info-Tech Research Group
IT-Business Alignment Measurement Tool

Use this tool to help you measure your organization's IT-business alignment.
Give your organization a score of 1-5 in the 38 categories below to arrive at an overall alignment score (see the Report Card tab to see how you did).

Level 1 - Without process (no alignment)
Level 2 - Beginning process
Level 3 - Establishing process
Level 4 - Improved process
Level 5 - Optimal process (complete alignment)

Communication Maturity
                                                                                                                      Score                  Justification
                                                   1   IT management lacks understanding
                                                   2   Limited understanding by IT management
      Understanding of business by IT              3   Good understanding by IT management
                                                   4   Understanding encouraged among IT staff
                                                   5   Understanding required by all IT staff
                                                   1   Managers lack understanding
                                                   2   Limited understanding by managers
      Understanding of IT by business              3   Good understanding by managers
                                                   4   Understanding encouraged among staff
                                                   5   Understanding required of all staff
                                                   1   Casual conversations and meetings
                                                   2   Newsletters, reports, group e-mails
           Organizational learning                 3   Training, departmental meetings
                                                   4   Formal methods sponsored by senior management
                                                   5   Learning monitored for effectiveness
                                                   1   Business to IT only, formal
                                                   2   One-way, somewhat informal
           Style and ease of access                3   Two-way, formal
                                                   4   Two-way, somewhat informal
                                                   5   Two-way, informal and flexible
                                                   1   Ad-hoc
                                                   2   Some structured sharing emerging
        Leveraging intellectual assets             3   Structured around key processes
                                                   4   Formal sharing at all levels
                                                   5   Formal sharing with partners
                                                   1   None, or use only as needed
                                                   2   Primary IT-business link
           IT-business liaison staff               3   Facilitate knowledge transfer
                                                   4   Facilitate relationship building
                                                   5   Building relationships with partners
Competency/Value-Measurement Maturity
                                                                                                                      Score                  Justification
                                                   1   Technical only
                                                   2   Technical and some cost; metrics rarely reviewed
                   IT metrics                      3   Review and act on technical and ROI metrics
                                                   4   Also measure effectiveness
                                                   5   Also measure business operations, HR, and partners
                                                   1   IT investments measured rarely, if ever
                                                   2   Cost/unit measured; rarely reviewed
               Business metrics                    3   Review and act on ROI and cost metrics
                                                   4   Also measure customer value added
                                                   5   Use of Balanced Scorecard, includes partners
                                                   1   Value of IT investments rarely measured
                                                   2   Business and IT metrics not linked
   Link between IT and business metrics            3   Metrics becoming linked
                                                   4   Formally linked, reviewed and acted upon
                                                   5   Use of Balanced Scorecard, includes partners
                                                   1   Use sporadically
                                                   2   With units for technology performance
          Service level agreements                 3   With units; becoming enterprise-wide
                                                   4   Enterprise-wide
                                                   5   Includes partners
                                                   1   Seldom or never
                                                   2   Sometimes benchmark informally
                Benchmarking                       3   May benchmark formally, seldom act
                                                   4   Routinely benchmark, usually act
                                                   5   Rou
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