TBM: A Set of Strategic Performance Management Processes

A successful information technology (IT) cost transparency initiative needs, at its core, the right combination of people, data, processes and technology. Of these four, most enterprises lack only the latter two: process and technology. This is the exact intersection where Technology Business Management works to transform and optimize an organization’s IT.

By leveraging more than a quarter century’s experience in the IT services industry and deep domain subject matter expertise in TBM, ISG has defined a set of core processes that are supported by TBM technology to help enterprises manage the business of IT. These primary TBM processes serve as a foundation for a larger performance management framework to drive strategy beyond ITFM and ITSM.

Each of the primary TBM processes, as seen in the center of the graphic, is defined by specific process inputs and outputs and is supported by related functions outside of TBM. These processes are then mapped to an organization’s most pressing TBM use cases as identified by stakeholders across the organization, such as migrating applications to the cloud or decommissioning legacy mainframes.

A global manufacturing company, for example, can connect these TBM processes to all of the other process flows it uses in other parts of its business to better understand how IT spend connects to supply chain management, finance, human resources and other service areas.

By aligning each of the use cases to the primary TBM processes, an enterprise creates a clear roadmap, complete with organizational design strategies, swim lane charts, process cards and timelines. In addition, clients also have a direct line of sight into the resourcing requirements to support a TBM program function that scales based on the complexity of the use cases.

The value chain is clear: IT cost transparency software, coupled with ISG’s work, supports the TBM processes, which supports ITFM and ITSM to drive corporate strategy. Embedding TBM within the broader performance management framework puts an organization in a position to garner broad support for the program, enable key stakeholders along the journey, and track TBM investments and value opportunities.

Interested in learning more about TBM as a strategy for IT transformation? Contact me to discuss further.

I’ll be speaking at the TBM Conference October 27 – 29 in Chicago. Read the latest press release and visit our TBM Conference page to find out more.

About the author

Alex-Paul works closely with enterprise leaders, IT finance managers and IT business unit leaders to help implement the discipline of Technology Business Management (TBM) into their organizations and optimize their enterprise IT. He advises both commercial and public sector organizations on the adoption of TBM programs, designs fact-based analytical strategies and supports broader IT transformation initiatives. His development of a strategic TBM multi-dimensional framework addressing people, process, data, analytics, technology and strategy is part of ISG’s industry-leading set of market best practices and methodologies. His thought leadership has been featured in CIO Review, MiddleMarket Executive and the TBM Council’s book The Four Value Conversations CIOs Must Have with Their Businesses.