Conversations from the Mirror42 Team

03/31/08

Royal Dutch Shell will spend nearly $4 billion during the next five years on outsourcing contracts with AT&T, T-Systems and EDS. The petroleum giant awarded $1.6 billion to AT&T, $1 billion to T-Systems and $1 billion to EDS.

An amazing outsourcing deal. Surprisingly enough, Shell has gone with a multi-vendor outsourcing strategy rather then naming one of the MSP to take the lead and manage the others on behalf of Shell.

Now it is up to Shell to implement a framework that allows them to keep a tight contol on the entire supply chain. After all, the service is a sum of its components: The SAP environment managed by T-Systems -> over the network managed by AT&T -> to the desktops managed by EDS. My advise to Shell:

• A common set of KPI definitions and control framework for the IT supply chain
• A role and web-based information hub where all suppliers will participate
• Agreement on what KPI information the suppliers will share, how they will share and how often they will share.
• An audit trail on the reliability of this information

Such an information hub should allow Shell to monitor the costs & quality of services, and drive improvements across the entire IT supply chain. The result: there is an incentive for all vendors not only to focus on their own component, but also on the entire value chain.

If anyone at Shell is reading this and thinks this make sense…. We are Dutch & Direct too and we believe we can be of help in implementing a control framework for your outsourcing contracts.

KPI Library News, January 31 2008

The best rated KPIs in the category ‘IT Management’ as rated by our users are as follows:

1- [4] % of service requests posted via web (self-help)

2- [3] Cost of service delivery

3- [5] Critical-time outage

4- [2] % of first-line resolution of service requests

5- [6] % of overdue incidents

6- [9] % of inaccurate CIs

7- [8] % of incidents not solved in-time due to inaccurate configuration data

8- [7] % of escalated service requests

9- [new] Number of untested releases

10- [new] % of IT time associated to IT investment

Within the brackets we have included the previous position of this rating. KPIs that were previously in the top 10 but have dropped out are:

% of outage due to changes (planned unavailability)

% of service requests resolved within an agreed-upon period of time

If you would like to contribute KPIs or rate KPIs in the library, please join us.

KPI Library News, March 12 2008

The best rated KPIs in the category ‘Project Portfolio’ as rated by our users are as follows:

* 1- Average deviation of planned ROI of projects in program
* 2- Deviation of planned hours of work for project/program
* 3- Cost Schedule Index (CSI)
* 4- Number of milestones of project/program missed
* 5- Average deviation of planned duration of projects in program
* 6- Number of new project/program issues
* 7- % of projects/programs with missed milestones
* 8- Average break-even time of projects/programs
* 9- % of projects receiving Quaility Assurance review
* 10- Schedule Variance (SV)

If you would like to contribute KPIs or rate KPIs in the library, please join us at the KPI Library.

This article from InformationWeek discusses the difficulties and steps in creating CIO dashboards.