MO01 Process Monitoring

MO01: Process Monitoring

1. Description

Define relevant performance indicators, the systematic and timely reporting of performance and prompt acting upon deviations to ensure the achievement of the performance objectives set for the IT processes.

2. Control Objectives

Collecting Monitoring Data - ensure relevant performance indicators (e.g., benchmarks) from both internal and external sources, are being defined, and that data is being collected for the creation of management information reports and exception reports regarding these indicators,
Assessing Performance - Services to be delivered by the information services function should be measured (key performance indicators and/or critical success factors) by management and be compared with target levels. Assessments should be performed of the information services function on a continuous basis,
Assessing Customer Satisfaction - At regular intervals management should measure customer satisfaction regarding the services delivered by the information services function to identify shortfalls in service levels and establish improvement objectives,
Management Reporting - Management reports should be provided for senior management’s review of the organisation’s progress toward identified goals. Upon review, appropriate management action should be initiated and controlled.

3. Key Goal Indicators

Consistent application of the right limited number of performance indicators
Increased number of process improvement opportunities detected and acted upon
Satisfaction of management and the governance entity with performance reporting
Reduced number of outstanding process deficiencies

4. Key Performance Indicators

Time lag between the process deficiency occurrence and reporting
Time lag between the reporting of a deficiency and action initiated
Ratio between process deficiencies reported and deficiencies subsequently accepted as requiring management attention follow-up (noise index)
Number of processes monitored
Number of cause and effect relations identified and incorporated in monitoring
Number of external benchmarks of process effectiveness
Time lag between business changes and any associated changes to performance indicators
Number of changes to the set of performance indicators without the business goals changing

5. Critical Success Factors

Useful, accurate and timely management reports are available
Processes have defined and understood Key Goal Indicators and Key Performance Indicators
Measurements of IT performance include financial, operational, customer and organisational learning criteria that ensure alignment with organisation-wide goals and can be integrated with tools such as the IT Balanced Business Scorecard
There are clearly understood and communicated process objectives
A framework is established for defining and implementing IT governance reporting requirements
A knowledge base of historical performance is established

6. Service Maturity Variations

0 Non-existent	The organization has no monitoring process implemented. IT does not independently perform monitoring of projects or processes. Useful, timely and accurate reports are not available. The need for clearly understood process objectives is not recognised.
1 (Initial/Ad Hoc)	Management recognizes a need to collect and assess information about monitoring processes. Standard collection and assessment processes have not been identified. Monitoring is implemented and metrics are chosen on a case-by-case basis, according to the needs of specific IT projects and processes. Monitoring is generally implemented reactively to an incident that has caused some loss or embarrassment to the organisation. Monitoring is implemented by the information services function for the benefit of other departments, but is not implemented over IT processes. Process definition and monitoring measures follow traditional financial, operations and internal control approaches, without specifically addressing the needs of the information services function.
2 (Repeatable but Intuitive)	Basic measurements to be monitored have been identified. Collection and assessment methods and techniques have been defined, but the processes have not been adopted across the entire organisation. Planning and management functions are created for assessing monitoring processes, but decisions are made based on the expertise of key individuals. Limited tools are chosen and implemented for gathering information, but may not be used to their full capacity due to a lack of expertise in their functionality. The information services function is managed as a cost centre, without assessing its contribution to the revenue generating entities of the organisation.
3 (Defined Process)	Management has communicated and institutionalised standard monitoring processes. Educational and training programs for monitoring have been implemented. A formalised knowledge base of historical performance information has been developed. Assessment is still performed at the individual IT process and project level and is not integrated among all processes. Tools for monitoring internal IT processes and service levels are being implemented. Measurements of the contribution of the information services function to the performance of the organisation have been defined, using traditional financial and operational criteria. ITspecific performance measurements are defined and implemented, but the non-financial and strategic measurements are still informal. Measures of customer satisfaction and service levels provided to the operating entities of the organisation are being implemented.
4 (Managed and Measurable)	Management has defined the tolerances under which processes must operate. Base-lining of monitoring results is being standardised and normalised. There is integration of metrics across all IT projects and processes. The information services function management reporting systems are formalised and fully automated. Automated tools are integrated and leveraged organisation-wide to collect and monitor operational information on applications, systems and processes. A framework has been defined for identifying strategically oriented KGIs, KPIs and CSFs to measure performance. Criteria for evaluating organisational development based on Maturity Models have been defined. Measurements of the information services function performance include financial, operational, customer and organisational learning criteria that ensure alignment with organisation-wide goals.
5 Optimized	A continuous quality improvement process is developed for updating organisation-wide monitoring standards and policies and incorporating industry best practices. All monitoring processes are optimised and support organisation-wide objectives. KGIs, KPIs and CSFs are routinely used to measure performance and are integrated into strategic assessment frameworks such as the IT Balanced Scorecard. Process monitoring and ongoing re-design are consistent with plans developed based on process maturity models and with organisation-wide business process improvement plans. Benchmarking against industry and key competitors has become formalised, with well-understood comparison criteria.