Discuss the role of KPI in decision making for the integration of ICT in a business environment.

The term KPI or Key Performance Indicator is a kind of quantitative value which is used to determine how an organization is productive in attaining the major objectives of its business. A business makes use of KPIs at various levels in order to figure out its success in meeting the targets. (Jones & Freund, 2014)

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Issues with KPIs

There are many issues involved with KPI. The major problem is that KPI is reported in a language which lets the employees to game with the system and avert its intent. Its impact is that although the employees get their bonuses paid but the performance of the organization doesn’t gets better and might get even worst. The second problem is the reasons needed for an appropriate KPI is never understood by the employees which means leads to working hard to attain the goals without any meaning or context. In lack of context, an employee fails to understand why it is important to achieve the KPI and this leads to a misdirected effort. The managers are in extreme pressure to institute KPIs that are suitable in bringing out factual decision making. (Smith, 2013)The quicker KPIs are accessed, analyzed and acted upon; there is a better chance for the success of an organization. To decide the areas that need performance management, the role and added value of the ICT organization is important to determine which might differ from business and ICT management to ICT supply management.

Use of the Balanced Scorecard for ICT Performance Management

The types of KPIs are dependent on the type of a business which has its own measure of success. A KPI usually includes enhancement of profit which is an indicative for the growth of the company. For example, KPI can include the rates of employee retention or, the closing ratios in sales. KPIs role in the process of strategic planning is based on the belief that it will provide the organization a measurable standard by which management can keep a track of the progress and implements changes if needed. The monitoring of the performance management is linked with the management cycle which shows which stakeholder is responsible for what. The various aspects of performance management can be finance, effectiveness, efficiency and service. (Parmenter, 2015)

References

Jones., J & Freund., J. (2014). Measuring and managing information security risk: A FAR Approach. Butterworth- Heinemann
Parmenter., D. (2015). Key performance indicators: Developing, implementing and using winning KPI’s. John Wiley & Sons
Smith., B. (2013). KPI Checklist. Lulu.com