CGEIT · Question #292
The board of directors of an enterprise has questioned whether the business is focused on optimizing value. The IT strategy committees BEST action to address the board's concern is to:
The correct answer is A. initiate reporting and review of key IT performance metrics. To address concerns about value optimization, the IT strategy committee should establish clear reporting of key performance metrics to demonstrate IT's contribution to business value.
Question
The board of directors of an enterprise has questioned whether the business is focused on optimizing value. The IT strategy committees BEST action to address the board's concern is to:
Options
- Ainitiate reporting and review of key IT performance metrics.
- Bconduct a portfolio review to assess the benefits realization of IT investments.
- Cconduct a benchmark to assess IT value relative to competitors.
- Dform a technology council to monitor the efficiency of project implementation.
How the community answered
(37 responses)- A54% (20)
- B24% (9)
- C14% (5)
- D8% (3)
Why each option
To address concerns about value optimization, the IT strategy committee should establish clear reporting of key performance metrics to demonstrate IT's contribution to business value.
To directly address the board's concern about value optimization, the IT strategy committee should implement and regularly report on key IT performance metrics that are directly tied to business outcomes and value realization. This allows for continuous monitoring, measurement, and communication of how IT contributes to the enterprise's strategic goals and value creation, providing concrete evidence of optimization efforts.
A portfolio review is a good step but comes after understanding what metrics to collect and report on, and (A) provides ongoing evidence rather than a point-in-time assessment.
Benchmarking against competitors helps understand external positioning but doesn't directly demonstrate the internal value optimization efforts and outcomes to the board.
A technology council for project implementation efficiency is a narrower focus on delivery, not the broader strategic concern of value optimization.
Concept tested: IT value demonstration, performance reporting
Source: https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/govern/metrics
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