Case Study: ChevronTexaco - ' Page 3 '
(
Page 3 of 3 )
Measure for Measure
Every month, ChevronTexaco's IT team rates itself on dozens of metrics, using a digital "dashboard" of red, yellow and green markers to rate performance per team, employee and department overall.
Here are some of the key measures:
Worker Productivity Yearly performance reviews for each IT worker aim to root out the company's least productive 10 percent. "Our customers always raise the bar for us."
Fulfillment of Service Level Agreements If IT fails to deliver on time, or if it overcharges for services, it gives rebates, which boosts the credibility of IT with the business-side executives.
Number of Business Incidents The IT team tracks the number of outages and subtracts cash from worker bonuses if the organization fails to meet certain targets for improvement.
Financial Performance Is IT recovering costs and driving costs out of the system? ChevronTexaco IT is required to stay within 97 percent to 103 percent of its budget, or employee bonuses get cut.
Number of Safety Incidents "For us, it's not slips, trips, falls or motor vehicle accidents but people having repetitive stress injuries," Clementz says. If incidents increase, performance reviews reflect the rise.
For Q&A with Dave Clementz about his use of activity-based cost accounting to achieve better IT-business alignment,
click here.
Margaret L. Young is a freelance writer based in Silicon Valley. Her work has appeared in a variety of publications, including BusinessWeek, the San Jose Mercury News and Stanford Business.
test
