Metrics and Estimation ROI

July 14, 2008 · Filed Under General  - 0 Comment(s)

I was speaking with Ton Dekker and others from Galorath this morning abut the ROI from viable estimation. Ton pointed to the empirical evidence of a 10 to 15% saving in overall IT spending based on the implementation of a metrics program and estimation going along with it. Ton also spoke of MOUSE…. the “list of activities and services that need to be carried out to get a metrics program up and running.” The activity and service groups within MOUSE include:

Market View

Operation

Utilisation

Service

Exploitation

Communication

Application

Training

Helpdesk

Registration

Evaluation

Review

Procedures

Guidelines

Improvement

Analysis

Organisation

Information

Investigation

Advice

Promotion


Why is all this important…. Well a viable metrics is not just collecting data… it is not just about checking a box. It is about communication, evaluation, and improvement. Looking at the number of metrics programs that fail, (the average life of a metrics program is 3 years according to Howard Rubin in 2006) It is about achieving business value with metrics. Programs that generate 10 or 15% cost savings generally don’t get killed. Programs that make more work and don’t have a payback can and should be killed.


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