MEASURING THE SUCCESS OF STRATEGIC INITIATIVES

Assalamualaikum peeps. For today's post, let us learn on how to measure the success of strategic initiatives. From what i have learnt, we need to know the efficiency and effectiveness of an organization to measure the success of strategic initiatives. But what is efficiency and effectiveness? 

Efficiency and effectiveness metrics are two primary types of IT metrics. Efficiency IT metrics measure the performance of the IT system including throughput, speed and availability. There are 5 types of efficiency IT metrics which is : 

1. Throughput - Amount of information that can travel through a system.
2. Transaction speed - Amount of time a system takes to perform transaction.
3. System availability- Number of hours a system is available for users.
4. Information accuracy - System generates correct results when executing same transaction many times. 
5. Response time - Time it takes to respond to user interactions. 

As for effectiveness IT metrics, it measure the impact IT has on business processes and activities including customer satisfaction, conversion rates and sell through increases. There are 4 effectiveness IT metrics that we need to know that is : 

1. Usability - The ease with which people perform transaction.
2. Customer satisfaction - Measured by such benchmark such as survey.
3. Conversion rates - Number of customers an organization 'touches' for the first time and persuades to purchase its products or services.
4. Financial - Such as return on investment. 

Besides that, we need to know about balanced scorecard, which is a management system in addition to a measurement system, that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both internal business processes and external outcomes in order to improve strategic performance and results. 

This post is about what i have learnt in chapter 4 of MGT 300. Hope we meet again in the future.   :)