Which approach is used to measure IT value and performance under governance?

• A. Dashboards
• B. Balanced scorecard
• C. KPI metrics
• D. Economic value

Answer: (B)

Measuring IT value and performance under governance relies on a framework that translates strategy into a balanced set of outcomes to monitor. The balanced scorecard does this by turning IT goals into metrics across four perspectives: financial results, the value delivered to customers, the efficiency and effectiveness of internal processes, and the organization’s ability to learn and grow. Each metric has a target and an initiating action, so governance bodies can track progress, understand how improvements in one area affect others, and make informed strategic decisions about where to invest or adjust course. This approach provides a holistic view of value, capturing both financial and non-financial benefits, which is essential for oversight and accountability.

Dashboards are great for visualizing current data, but they don’t inherently establish a strategy-driven set of interconnected metrics. KPI metrics refer to individual measures but don’t automatically connect those measures to strategic objectives and tradeoffs. Economic value focuses on financial return, which can miss important non-financial gains like customer satisfaction or process resilience that governance needs to consider.