1. Review of Quiz 1
ISQS4385

2. Delivering the Value of IT
What, Where, Who, How, When
Five principles
Business and IT Strategies
Four CSF
Dimensions of IT strategy
IT strategy development

3. The “W” Effect in Delivering IT Value (Chatterjee and Seagars, 2002)
© 2015 Pearson Education, Inc.  Publishing as Prentice Hall

4. The Three Components of the IT Value Proposition
IDENTIFICATION + CONVERSION + REALIZATION = IT VALUE
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5. IT Strategy Alignment to Business
IT metrics & measurement
Designing Business Metrics for IT
Principles of a Business Metric Program for IT
IT-Business relationship
Four building blocks

6. Balanced Scorecard
Source: Balanced Scorecard Institute,

7. Approaches to Linking IT with Business Metrics – Sample Scorecard Metrics
Shareholder Value (financial)
Expense Management (financial)
Customer/Client Focus (customer)
Customer Loyalty (customer)
Customercentric organization (customer)
Effectiveness and Efficiency of Business Operations (operations)
Risk Management (operations)
Contribution to Firmwide Priorities and Business Initiatives (growth)

8. Modified Scorecard Business Metrics
Customer Loyalty Index – the percent of customers who said they were very satisfied with the company and would recommend it to others.
Associate Loyalty Index – employees’ perception of the company as a great place to work.
Revenue Growth – the percentage of this year’s total revenues with last year’s total revenues.
Operating Margin – the operating income earned before interest and taxes for every dollar of revenue.
Return on Capital Employed – earnings before interest and tax divided by the capital used to generate the earnings.

9. Strategic Imperatives Example
Figure 3.1 Percentage weightings assigned to IT Variable Pay Components for a Particular Year

10. The Foundation of a Strong Business-IT Relationship
Trust
Credibility
Competence
Value
Interpersonal Interaction

11. Communication and Leadership
Communications between IT and Business
Obstacles To Effective Communication
“T-Level” Communication Skills for IT Staff
Translation, tailoring, transparence, Thinking, talking, and listening
Transformational IT Leadership
Makes a Good IT Leader
Flexible Leadership Styles
Effective Leadership Development

12. “T-Level” Communication Skills for IT Staff
Translation: A four-step process
Business Impact of Technology Issues
Business
Technology Issues
IT Solutions
Business Solutions IT
Translation
Video: 2:57

13. Effective Leadership Development Requires…
Video: 4:14