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2012 45th Hawaii International Conference on System Sciences

An IT Balance Scorecard Design under Service Management
Philosophy

Antonio Folgueras Marcos Juan Ignacio Rouyet Antoni Bosch
Carlos III University of Madrid Pontificia University of Salamanca Institute of Audit & IT-Governance
antonio.folgueras@telefonica.net i.rouyet@quintgroup.com antoni.bosch@iaitg.eu

Abstract learning; business planning; and communication and
The present study proposes a design for an learning [15]. These four concepts work together in an
Information Technology Balanced Scorecard (IT BSC) endless spiral of improvement over the lifecycle of the
that integrates with business and environment and IT services. The IT Governance definition is taken as
balances and optimizes deployment and control of the the starting point to understand the differences between
Information Technology strategy. This Strategic and IT governance and IT management. In contrast to the
Tactical IT Planning model enhances IT’s role in definition of IT governance, IT management looks for
obtaining and measuring its contribution to business “The system of controls and processes required to
value: optimizing IT operational efficiency or achieve the strategic objectives set by the
proposing new business ideas with a high IT organization's governing body. Management is subject
component. The proposed model stimulates innovation to the policy guidance and monitoring set through
in each of the parts of the IT Services lifecycle, is corporate governance” [34]. ITSM BSC is based on
based on IT Service Management best practices and ITIL, one of the best practices for IT Service
uses ideas from the ITIL v3 standard. Management: “Service management is a set of
specialized organizational capabilities for providing
value to customers in the form of services” [32]. The
1. Introduction proposed ITSM BSC is confined to strategic and
tactical levels in the IT area, siding with governance
This research is about IT Governance and one of its and management definitions and using IT Service
key processes is Strategic Planning of Information Management concepts.
Systems. The proposed Balanced Scorecard in this The idea of taking the BSC and IT Service
paper aligns with good IT governance requirements. Management to design a new Strategic Planning
According to the IT Governance Institute, IT concept is due, first of all, to the maturity of both
governance can be defined as “The responsibility of concepts and to the fact that they are two of the most
executives and the board of directors, consisting of the used techniques in governance and management of IT
leadership, organizational structures and processes that organizations. Between 40 per cent and 65 per cent of
ensure that the enterprise’s IT sustains and extends the the organizations use BSC [24] and sixty five per cent
organization’s strategies and objectives” [13]. In this of the large companies have implemented an ITIL best
study we have used IT strategic planning as “a practice [36]. There are also studies that analyze
complex of implicit or explicit visions, goals, whether the implementation of ITSM BSC entails
guidelines and plans with respect to the supply and the financial benefits because many deal with non-
demand of formal information in an organization, financial issues [23] [25] [27]. To this end, S. Davis
sanctioned by management, intended to support the and T. Albright [5] analyze the banking environment
objectives of the organization in the long run, while with many organizations, some of which applied BSC.
being able to adjust to the environment” [9]. It is with Those which did, had the most value added.
this key process of IT government, IT strategic
planning, where this research uses the Balanced
Scorecard oriented towards IT Service Management
2. Main goal and scope of the research.
(ITSM BSC) as the best way to deploy the IT
department’s strategies and their back control. The four The main objective of this research is to propose an
processes proposed to manage the strategy and optimized IT BSC design, taking the BSC proposal and
described in Kaplan and Norton’s IT Balanced IT service management best practices as the starting
Scorecard are: translating the vision; feedback and point to deploy both strategic and tactical changes of
IT services in a balanced way and to control the

978-0-7695-4525-7/12 $26.00 © 2012 IEEE 4884
4972
DOI 10.1109/HICSS.2012.107

which Van Grembergen proposes a cascade of BSC from the integrates service management with the BSC. internal processes. it is mentioned in Service Strategy. and learning and growth The four goals proposed to be supported by Kaplan and [16]. information systems Although ITIL version 3 does not consider BSC development. These perspectives are not treated independently. operating systems and databases. capacity management. making it difficult with IT infrastructure. services: IT governance. appointed as use of other methods such as: Visioning. into four levels from the fourth or bottom level of the is being used only by about 10% of the IT population pyramid. Selected Bibliography guidance to bring each of the classical perspectives’ definition to a new ITSM perspectives definition. However. these four goals are not fully reached in the action plans can be found. The current IT BSC proposal improves the existing The first widely extended dashboards were the ones. network management. which comprise four perspectives: financial. and communication and learning. and vision is broken down [4]. and by extension by IT but are guided by a vision and a mission inherent in all BSC. Besides objectives. adapting them to the IT sector requirements and “tableaux de bord” that introduced business unit avoiding the following: The inadequacy of functional objectives. COBIT. ITIL v3 provides 3. management of and association with incentives [39]. such as the Maisel departments and necessary third parties [33]. Interesting adaptations of . efficiency and effectiveness. detailing BSC cascades and applying it to a service desk example [32]. the “Balanced Scorecard Oriented to IT Service Another interesting approach is the use of IT BSC Management. feedback and learning. Model of the European Foundation for Quality The scope of this research covers the deployment of Management (EFQM). The proposed design where it is incorporated in the “definition list” section. continuity ITSM in depth. Feedback and learning: Only 38% of the the classic view of the BSC but designed to IT innovation aspects are very efficient in the departments are the Van Grembergen proposals [37]. does not include the valuation of the previous strategy in Service Design. Stakeholder complementary industry guidance. or ITSM BSC. IT EFQM focuses on TQM (Total Quality Management) architecture. Drama Theory and Five Forces. which replaces growth perspective 43% of the respondents agree that the relationship with human resource perspective. Key Success Factors and an BSC to the needs of IT departments. project management and change while BSC focuses on strategy. but both have management. Translating the vision and communication and strategy to the rest of the organization. or standards such as the Excellence (business areas) in the organizations. security. there are ability to integrate and share information across others with similar approaches. Only dashboard [20]. goals. IT department organizational hierarchy. IT representatives indicate that the maturity of the governance of their department is at 4973 4885 . and the disintegration and lack of widespread BSC are those developed by Kaplan and communication between the organization areas and the Norton. customer. This proposal. organizations [4]. Improvement. IT management. indicators (lead and lag) and However. is called IT development and IT operations areas to business. in this research the to select and evaluate the objectives proposed. in which the results are measured by [12]. organizations the IT area is limited to issues associated and therefore lead-time is unknown. not knowing how to select the indicators into balanced perspectives to ensure that key best strategic objectives and to quantify value using a issues are considered in any strategy. are: translating the vision. that defines a metric tree based on for defining the strategic lines. strategic business planning. and in Service Analysis. and it recommends the the BSC. which gives business / IT alignment help. the perspectives [15].deployment of IT change. specific targets. problem management. as can be seen in the the indicators should be part of a chain of cause-effect following examples: (strategy maps) objectives to deploy the defined . BSC groups the objectives and within IT departments. it is the proposed IT BSC covers the entire portfolio of IT dynamic models which provide this information. learning: Only 43% rate good or very good on the Apart from Kaplan and Norton’s BSC. in Service Operation. This service orientation in conjunction with other techniques such as dynamic integrates the IT supply (IT areas) and the IT demand models [28] [2]. BSC does not incorporate time the strategy for the entire IT services portfolio. Norton’s Balanced Scorecard. In some delays in the cause-effect relationships or feedbacks. The most dynamic model. management and backup services. not considering interrelationship between the different levels of the environment as one of the triggers of the strategy “tableaux de bord” [7]. McNair’s pyramid between management and business is very effective dashboard [22] is similar. service similarities such as the need to adapt to each company center. Each of the objectives with current IT organizations.

PERSPECTIVE Intimacy & Product infrastructure. are the departments informs the business about potential justification for this proposal.level 3 or below [6]. In a massive survey conducted by the author with To resolve the points mentioned above. organization. IT utility + IT warranty Leadership information and people SOCIAL information and people ENVIRONMENT IT FINANCIAL FINANTIAL INTEGRATION PERSPECTIVE PERSPECTIVE IT Business Contribution+ IT Business Value Capabilities & Resources Funding Canbeinternaloexternal Figure I. A small majority (55%) of IT acceptance of ITIL v3 in organizations. 8 out of 10 respondents indicate that the IT . people and knowledge CUSTOMERS Resources Resources Excellence. only 22% of necessary to design a BSC that (from upper level to respondents use the BSC in their IT departments as a lower level): tool of governance or management. a good position vision of service management. A new IT BSC design for better planning functions are very effective [4]. In (section 7). and the BSC of the business as a practice) [6]. operation + IT Analysis &Operation INTEGRATION continual improvement BUSINESS FUTURE ENVIRONMENT FUTURE CUSTOMERS PERSPECTIVE PERSPECTIVE PERSPECTIVE PERSPECTIVE IT Capabilities Capabilities Management. it is the help of itSMF Spain and Bita Center. All mentioned issues. . USERS & Operational people and knowledge ENVIRONMENT. in the . In the BSC. held independently to budget discussions [6]. suppliers and more than half of them indicated they Figure I shows how BSC of IT is interrelated as a have formal SLAs established (SLA is a ITIL best service supplier. 66% of the respondents use 5). IT is one of the largest modifying the classical perspectives with the sources of innovation and creativity in organizations.2. ITIL v3 as a best practice for IT departments and 89% . To . incorporating a new regarding human.) and capacity is achieved [15]. applications. following: which makes this perspective essential. Incorporates environment in IT BSC (section Spanish organizations. MACRO-ECONOMIC & Financial capital. infrastructure. Improves measurement of value (section 6). business opportunities always or regularly [12]. organization. Moreover. TECHNOLOGYCAL Management. Over 40% of the strategic discussions and alignment of strategies are integration. Customer Financial capital. New ITSM BSC proposal designed towards IT Service Management and Sourcing. of them consider the value contribution of ITIL v3 as . STRATEGIC OBJECTIVE PART THAT IS BUSINESS STRATEGIC OBJECTIVE PART THAT STRATEGIC THE RESPONSIBILITY OF THE OBJECTIVES IS THE RESPONSIBILITY OF THE IT SERVICE CUSTOMER SHARED IT SERVICE PROVIDER OPERATION OPERATION PERSPECTIVE PERSPECTIVE Corporate IT planning + Governance+ IT design + IT Research &Development transition + IT +Business Strategy. as well as the service under the design of the proposed ITSM BSC. Integrates the IT area using the IT BSC department has formal relationships with outsourcing (section 8). IT BSC proposes adjusting classical BSC to a and Norton's future perspective. addition. which depends on the strategy of the recommends following the dual classification of IT moment. applications. Future perspective: Using this nomenclature accommodate the ITIL V3 philosophy. under the philosophy of Kaplan’s assets (resources and capabilities with their 4974 4886 . organizational and technological environment perspective (discussed in section 4. Integrate IT BSC with the business BSC governance or management best practice positively. the author instead of growth. Business planning: Only 34% say that 4.

the client’s (who pays for IT services. Every (who uses the IT services and asks for functional strategic objective is evaluated: value. value of in which a service can be provided with internal and operational improvement provoked by IT (operational external resources depending on the time. customer perspective [28]. complementary views. ITSM BSC should not be filled with too a new IT service) and warranty (How do we give the much information. the financial showed in figure II by arrows are proposed in other perspective that appears in ITSM BSC should take the researches [24]. SLA is more detailed in the Service Level to inform about both the forces that help change Management process. Given the However. This idea is essential in order to into three sub-perspectives: value of new business move to a philosophy aimed at IT service management. If the goal is to improve the way fundamental and should be included. we are talking about change and an ITSM BSC has to relate the evolution of the impediments or barriers to be overcome [38]. This way. while information in ITSM BSC (motivators. for example greater strategy and the governance of IT change is systems availability). for important change is that BSC does not end with example. To consider various aspects this perspective controlling the deployment of our strategy in the IT is called IT financial perspective. targets on how to fund the IT resources and capabilities . these are also subdivided (internal or external). greatly facilitates the work with this perspective and it ITSM BSC also proposes a series of new entities to is recommended to define groups following ITIL V3 complement causal diagrams (cause / effect) of processes. it is a good thing that causal diagrams have Logically. capacity For a quicker and easier use of ITSM BSC. a strategic objective of "improved incident All the strategic objectives are related to the mission / resolution time" is found in the sub-perspective of vision and the strategic line that is our trigger. Some authors consider outsourcing in the by the initiative. it should include more critical role in organizations. cost. ITSM BSC covers the double vision: the . it leads to this objective". When we in the Service Level Agreements (SLA) and therefore talk about strategy. The relationships covers part of the business strategy. COTS services design is outsourced.corresponding details) because these are the IT assets name of business contribution perspective [21]. that must be adapted to the future. activities and their relationships. Therefore. supported by IT (strategic innovation). IT Financial Perspective: Since IT BSC objective. strategy to the expected evolution of the SLA. frustrating and delayers). example. Thus. and the external vision of IT asks for client requirements) objectives and the user’s services of a market space with a service level. facilitators. this will be controlled by service-level proposed that causal diagrams’ directions be defined objectives within the operation perspective.” and “What market space is covered BSC. catalysts) and the barriers to is summarized in the strategic or tactical level of change (mischievous. Under a Service Management It is essential that BSC helps to manage the operation. In order to balance processes. apart from the contribution IT organizations. and even every initiative with information about the IT service supported and maintained in the BSC of another catalog (“What service line or service area is covered organization and integrated into our organization's by the initiative. it is also associated to outsourced within the operation perspective. service levels. and limited by relations such as "If you pass this . 4975 4887 . Using ITSM terminology. in which we provide internal processes (i. Having a process-oriented ITIL V3 funds. but key information to ease the IT service to the user / customer?.e. but we think it fits much The actions are grouped into projects and programs. This efficiency) and value from IT good governance. The perspective proposes objectives that lead to excellence fourth sub-perspective is objectives on how to obtain in the IT operation. Customer / user perspective: In this inner vision of IT and business processes affected by perspective. irrespective of the ownership of resources the value of IT proposals. For objectives similar to other existing proposals [26] [18]. this perspective increasingly has a to business previously discussed.”) and the service level to be achieved. Operation perspective: It is responsible for required. If. the agreements with customers are reflected implementation of the strategy properly [29]. both are lead-time. it is also initiatives and those responsible. given the big IT investment required for the importance of acquiring knowledge for the survival of IT department investments. risk and requirements) objectives must be considered. better in the operation perspective. this the proposed ITSM BSC aims to inform barriers and perspective will have two sub-perspectives: utility facilitators of change in the objectives that this aspect (What do we give to the user / customer?. for example is critical [17]. and IT strategic change. we management). One "service operation" and "incident management".

collaborate as service providers. instead of organizations with the philosophy. Providers and Partners). which triggers the other perspectives. of little use. This makes ITSM acceptance of a technology. BSC environment perspective.PROGRAM/ PROJECT/ INITIATIVES – IT USER & IT CUSTOMER UTILITY WARRANTY •Requirements coverage •Availability • SERVICE LEVEL . powerful as Porter's five competitive forces [30] in 5. the objectives of all the perspectives. In the case of IT services. and this requires incorporating necessary to control environmental variables that affect environment (the philosophy of the "four Ps": People. disconnected from the outside world. We This suggests an ITSM BSC in which perspectives are have introduced a simplified and adapted tool as 4976 4888 .VALUE / COST / FLEXIBILITY / COST •Outcomes: usability and •Capacity productivity •Continuity 4 •Constrains: costs avoided •Security SERVICE STRATEGY SERVICE DESIGN SERVICE SERVICE OPERATION SERVICE •Financial management •Service level TRANSITION •Event management IMPROVEMENT OPERATIONAL “as IT provider” management •Strategy generation •Availability management •Change management •Incident management •7 steps improvement •Demand management •Service continuity •Service asset & •Request fulfillment •Service measurement management configuration management •Service portfolio •Problem management •Service reporting •Capacity management •Knowledge management management •Security management •Release &deployment •Access management •Improve management Internal service provider 3 Shared services unit External service provider RESOURCES CAPABILITIES FUTURE •Applications •Management •Information •Organization •Infrastructure PEOPLE •Processes •Financial capital •Knowledge 2 INFORMATION TECHNOLOGY SOCIAL FRAMEWORK MACROECONOMIC ENVIRO- NMENT LEAPS •Alliances and agreements FRAMEWORK •Computing •Innovation acceptance •Competency •Content •Education •Macro economy •Systems and requirements •Financial capital •Clusters & public collaboration 1 •Connectivity & Communications •Financial capital Figure II: Balanced Scorecard template based on IT Service Management. Incorporating environment to IT BSC. rational and political BSC. not management philosophy facilitates outsourcing as an knowing the customers / suppliers that interact with internal service after a given point in time. •Comply with external policies & norms •IT Resources funds services •Increase margins through price optimization •IT Capabilities funds NANCE •Improve production & logistic costs •Increase income through marketing •Improve administrative & sales costs activities •Optimize taxes •Improve IT& corporate governance by IT •Improve assets & infrastructure efficiency •Optimization of accounts payable & accounts 5 •Improve brand & organization image receivable •MISSION /STRATEGICAL AREAS . which only has internal objectives and is aspects and environment must often be considered. The service incorporating globalization of transactions. organizations need to consider the . there perspective. BSC considers environment for two reasons: More and more. Integration with the strategy of partner virtual boundaries that incorporate environment and organizations: According to the Service Management social aspects [8]. To analyze the Processes. are external partners and suppliers that participate in an . The ITSM BSC and external ITSM BSC organizations that new business based on Internet technologies. it is necessary to connect the internal classical view that ends with their departments. All these them. STRATEGIC INNOVATION IT OPERATIONAL EFFICIENCY IT FUNDS FINANTIAL •Increase income through new product & GOVER. to add high diversity to IT solutions and have a objectives are incorporated in the operation very dynamic behavior. Therefore. Macro factors that affect our strategy: It is IT organization.

Porter describes complete strategic objectives in the organization. After creating this unique model integrated with a IT BSC. macroeconomic improving administrative and marketing costs. IT cannot be taken as a in isolation is not enough [1]. Without these and improved objective by consensus. agreement improvement in cost. it requires methods to business tool or as something isolated from other consistently calculate the integrated value of the causal business areas [19]. improved corporate governance. maturity. ecosystem (leaps in technology.linked to the group of economic. they have to be included in to marketing activities. 6. improved asset efficiency and continually control the evolution. improving environment in IT BSC is that the actual BSC does not income and coverage requirements for new customers. This the strategy decisions. value calculation must include risk consideration that is closely linked to the time horizon to begin cash flows. the author has designed a dynamic the departments affected. Integrating IT BSC with the business diagrams. reduced investment. human resources. The five perspectives proposed in paragraph 4 add Moreover. the different perspectives are defined and designed under a single perspective [10]. methods or functions of another paper. In these concepts as doing the same in a more optimized order to facilitate the operation and to allow different (operational efficiency) way or addressing new departments and their managers to exercise their technology-based activities for differentiation responsibility and authority. BSC To value IT objectives in the BSC qualitatively and Under a modern approach. It is not recommended to create mono- on each other (an improvement in operation departmental and independent objectives and then try perspective entails advantages in the customer to convince the rest of the departments to align perspective). technological and improved branding. With this Reengineering (BPR). level of interconnectivity. there are simplified classical theories of both concepts of locating Information Systems (IS) alignment between business strategies and technology according to their strategic positioning. Therefore. The ITSM BSC. research & philosophy also recommended by Business Process development and information systems. because the time needed for implementing and IT management. technological projects is generally longer than time 4977 4889 . important strategic objectives are achieved value to the business regardless of other perspectives with high added value by making "miscegenation" of (an improvement in customer perspective does not all the knowledge areas involved in the strategic have to come from future perspective). alignment between strategy and operations is The Net Present Value used to evaluate IT strategic facilitated because strategy deployment through ITSM decisions is calculated using standard formulas that BSC translates strategic objectives into tactical provide value through fourteen factors or value dials objectives. as a result. and and receivable. The and therefore to select the most suitable objectives. and these into initiatives. variables. it can then be simulations it would be difficult to filter which divided into partial objectives according to the objectives have the most influence in a change process responsibility of the different areas affected. complete and deep changes is in line with the production. the objectives can be (strategic innovation) [30]. Strategic innovation with broken down into partial objectives by area: financial. Improving measurement of value and selecting variables from the IT BSC causal 7. In incorporate all the techniques. making chain [35] and to consider intangible contributions [3] plans or any significant change requires integrating and [14]. McFarlan’s matrix considers philosophy. Dynamic simulation models objectives with some degree of coordination and facilitate obtaining information [2] [28] [31]. optimization of accounts payable social variables. improved governance the idea. The only existing that are influenced by IT decisions: compliance with misalignment is the delay from embodying to adopting standards and external policies. production and logistics. reflect the assumptions and the limitations to support and improved margins by price optimization. Thus. which are important to consider. In modern organizations. commercial. has to balance the concepts of operational fundamental philosophy proposed is to provide efficiency and strategic innovation. and must always finish with financial themselves with something that has already been perspective.) are a trigger to the majority of IT improved or business income coverage of needs related strategies and. etc. changes in the infrastructure. different value input sources with different payback What is recommended is to design the proposed periods on investment. Any tool that deploys change. are dependent objective. improving revenue or coverage ITSM BSC. Another benefit of introducing of needs for new products and services. as is the case of considering all the departments involved [11]. strategies as well as between structures and strategies. tax optimization.

ensuring compliance with the strategy at all service asset). it is appropriate to detail ITSM BSC. require a higher level of detail. organization. BSC breakdown designed towards IT Service Management and depending on the size of the company. taking the lifecycle of the IT 8. service area. plus a third Scorecard.needed for running functional or organizational Figure III shows that for organizations which changes. BSC has so far shown that the strategic ITIL V3 can also give precise instructions on how BSC to deploy strategic change and more detailed to address this ITSM BSC breakdown from strategic to levels of the organization such as tactical aspects (more tactics. levels. For supported are similar for tactical and strategic ITSM example. bonuses and ITSM BSC is not required. 4978 4890 . in the case of IT employees. BSC is one of the best communication and training service transition book processes). rewards and BSC. ServiceCustomersandUsers BusinessBSC Horizontalbidirectionalintegration Human Research& Finance Operation Commercial Resources Development BSC BSC BSC BSC BSC ServiceProviders Verticalbidirectionalintegration ITOrganizations IT >10and<50 (internalorexternal) BSC employees ITOrganizations >50and<150 IT ITDesign IT employees Governance &Transition Operation BSC BSC BSC ITOrganizations>150 employees Area ITILProcess MarketSpace dependingon orLineService … BSC … BSC BSC organizationalstructure andkeystrategicarea Figure III. required to ensure more added value BSC and consistency. perspectives and information that are requiring elaborate and comprehensive dashboards. The strategic and tactical penalties must be linked to fulfilling objectives (linked ITSM BSC operation coincides over time. The lowest levels. There are three possibilities: breakdown by detailed and shorter time horizon) should be added to service provisioning process (service design books and it. but with a shorter organizational scope and promotions should be linked to meeting personal shorter development time ranges. would meet client or employee objectives without The format. this further breakdown of objectives) and in the case of suppliers. or operation levels. or tools for decision-making that an organization can market space (combination of archetype of service and implement. Integrating the IT area using the IT BSC services grouped (development plus transition and operation) into account. which collects the necessary changes proposed in IT The vertical integration that provides a breakdown Governance (the governance provides strategic of BSC must be added to the horizontal integration. Logically. improvements in all IT processes such as IT planning according to the IT department’s hierarchical process and continuous improvement process) [13]. and a double to strategic and tactical objectives) and their associated "top / down" and "down / top" adjustment is always Service Level Agreements. in small or objectives (derived from the strategic and tactical medium-sized companies.

human resource management. Within the same strategic line. be listed. . only one change to COTS (commercial through more training and information. IT infrastructure (VIR) Virtualization systems were in full governance leads the change from a classical acceptance during 2009 in Spain due to their great conception based on internal metrics to a more modern conception based on service level definition. Implementation of the proposed solution potential for cost savings and efficient use of the in an Insurance company business case capacity of information systems. threats and demand and capacity management. eliminating the dreaded solutions without taking advantage of synergies. vacation. maturity and suppliers in competition that led to working with disparate architectures and with the possibility of change. Social. infrastructure-monitoring system and to optimize The following weaknesses. Weaknesses. and Threats). The three strategic lines: server virtualization and update of technologies proposed are the purchase of a package of the infrastructure. etc. team. supported in the 29 objectives. The proposed design is applied to a case study Management was also facilitated by allowing the developed by the paper author. a decrease the implementation lead-times. among others: to design / implement Economic.The main weaknesses were the lack of scalability servers that cover all the offices in Spain every three of the IT infrastructure.The main opportunities were new technological carried by a new communication office that allows solutions to share resource of existing and new IT users to be better informed about business aspects. for example). implementation of an employee knowledge management supplemented with portal and IT governance improvement. and with more usable.). mainly due to uncoordinated decisions technologies. the update of suppliers and dispersion of technological microcomputers and installation of a test lab infrastructure. Opportunities. With the rapid opportunities were found: growth of IT. The principal changes are focused on HR information (payroll. The strategic planning process identifies information (satisfaction surveys. This change is developments by HTML. infrastructure to minimize risk by previous testing was .9. the following could environmental analysis considering Political. to renewing IT infrastructure and improving the manage the education pathway (open courses. In the users are expected to improve customer service 2010 planning. versions that are supported on the SAP platform. presence. and thus of the shell) or applications services of IT service increase sales. PHP and Flash. In The company has an efficient ERP. Implementation of an employee portal (EMP): Department was used to using metrics and was The implementation of an employee portal enables able to adapt to change. It is an example of strategic line insurance company there was much disagreement on triggered by environmental changes: virtualization IT Government. fast and easy . governed under a single capacity department of a large insurance company.The main strengths were a highly technical IT included. employee portal is to provide strategic information . maturity 4979 4891 . managers Before designing the ITSM BSC. dependence on a single supplier. an evaluation of the are also demanding IT services with more variable Strategic Options was made by using a SWOT analysis costs for facilitating the opening of new offices and (a strategic planning method used to evaluate the applications in order to meet changing demands and Strengths. The organization was looking for a high growth rate of Information Systems and greater flexibility and adaptability to change. In the management. The IT . Within the PEST analysis (describes a framework of macro- internal objectives to be achieved. training scalability. and Technological factors) and a virtualization software. company employees to get an agile.The main threats were many new business administration of several of the processes related to competitors eager to grow. strengths. and reduce the number of doubts and mistakes. The BSC provides coexistence of different systems with different coverage for changes in IT services of the IT characteristics. Virtualization of servers and update of the models for IT governance are not provided. The other objective is for employees to catalog was considered: an application relating to an have information at their disposal to consult their own employee portal. no method for selecting years. infrastructure and a large number of competing transmit strategic commercial information to customers providers offering them. Another objective of the interactive and advanced information systems. it is required to update the group of IT . to acquire / configure an reengineering process analysis of the IT department. etc) and to consult general administration infrastructure. Internally. fluent in programming languages. with updated order to be better aligned with the commercial strategy. Improving IT governance (GOV): Changes in The three strategic lines are listed below: infrastructure will not give the expected results if new . availability and continuity in the IT materials.

and standard costs under which they provide the 11. 10. publication discusses different evolutions of the BSC . After that. have methodology was chosen for working up validating appeared. T. After completing [1] Abran.189. action planning. action research process have been ten experts with over [4] Cecere. which includes all the improvements by Software 34. validated by a short number of hypotheses. Marc & Manzoni. integrating IT with business and the environment. The process of Action Research is done in an iterative process of three phases. action 12. Pp 339-349. Baldry. the final model is obtained from the third stage. There is also a growing concern for continuity aspects. Marc & Peters. IT Strategic Planning process. Validation methodology Moreover. The Action Research philosophy based on the life cycle of IT services. European Management 4980 4892 . companies from the real life (the insurance business Deloitte. The general methodology used has four steps: Diagnosing. Marjan model. a second phase is Balanced Scorecards. Implementing Corporate Strategy: From Tableaux de Bord to Balanced Scorecards. monitoring the evolution of change and its deviations. consequently. for improvement and validation of the initial proposed [3] Amaratunga. The paper is designed to solve real problems for IT and proposes an optimized design for better that happen in IT departments and is more utility. definition of service level. May 2002. This collaboration of researchers and practitioners. following the guidelines set only academic knowledge. [5] Davis. Forrester Research. David & Sarshar. After the proposals the operational research society. in recent years interesting methodologies. Dilanthi. Management Accounting Research 15 area. the practitioners had to of Balanced Scorecard implementation on financial positively answer around fifteen questions per domain performance. Luigi (2003) A the first phase. [2] Akkermans. (2001) Process improvement through performance Given the level of knowledge required to validate measurement: the balanced scorecard methodology. (2004) An research of the effect the paper at the end of phase II.levels and service contracts with external suppliers. References evaluating. bonus and penalizations. subsequently. Alexander (2008) The State Of twenty years of experience in the areas of IS. one . The author does not recommend the use of tools . & van Oorschot. the paper. 2008. This governance research has a human and designed for the functional areas without adapting social component that is better improved by the them to the peculiarities of the IT world. and its deployment translatable to a few variables with a few relationships through Balanced Scorecard oriented to IT (IT BSC). The research question was: How can we adapt and ITSM BSC requires the organization to be connected particularize the balanced scorecard to be used in a through sharing design and integration with ITSM BSC more effective and simple way in IT strategies providers of certain services such as major contracts following a well-known and high acceptance service for Application Service Provider. as is the case of version 3 of ITIL and its validate this research. IT IT Governance In North American And European Service Management and IT governance. February 28. & Albright. S. It defines a service management best practice? The validation process took catalog and every service is endowed with a complete three years. Journal of practitioners are deeply involved). K. (2002) Developing a practitioners (in the second and third phase balanced scorecard with system dynamics. To validate Enterprises. H. deploying a balanced strategy and. action taking. During the action research process two business (2004) 135–153. the practitioners chosen to participate in the Pp179. Jean-François (1998) responsibility). Building on the redefinition of policy caused Balanced Scorecard (BSC) is a discipline that has by the virtualization infrastructure is necessary to considerably evolved in recent years and is the most develop new roles and procedures and setting widely accepted discipline in organizations when instructions to use resources in critical situations. The paper is an extensive model not easily of its most important processes. Alain & Buglione. techniques and models which have brought IT to The use of Action Research was proposed to business. Elsevier. out by the best practices of IT service management. cases were developed by the paper author in two [6] Deloitte (2008) 2008 IT-Business Balance Survey. Elsevier. a pre-model is proposed (performed multidimensional performance model for consolidating mainly by the researcher). Conclusion services. Advances in Engineering opened. All these ideas have affected IT governance this paper for the following reasons: and. It oriented to the professional field than to contribute has specified the design. case and a new portal of corporate social [7] Epstein.

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