IT performance management

For monitoring of IT systems in real time or forensically, see Software performance management.

Main article: Organizational performance management

In a business or IT Management context, IT performance management is concerned with measuring the expenditure of capital and human resources ^[1] on Information Technology projects. This allows the business to determine how these expenditures improve strategic and operational capabilities of the firm in designing and developing products and services for maximum customer satisfaction, corporate productivity, profitability, and competitiveness. ^[2] This type of IT Performance Management is usually of interest to executive level IT personnel, all the way up to the Chief Information Officer (CIO), and is related to IT Portfolio Management. ^[3]

Benefits

Direct financial gains

• Focuses IT resources on projects that grow sales ^[4]
• Focuses IT resources on projects that reduce costs
• Aligns IT organization directly behind corporate financial goals

Improved management control

• Demonstrates the direct business value of each IT project or operation
• Helps audit and comply with legislative requirements
• Allows reallocation of IT resources to projects of most importance to the corporation
• Facilitates the elimination of IT projects that are not delivering on expected benefits

See also

• IT Resource Performance Management

References

1. "Performance Management Overview (For Managers) | Human Resources". hr.utexas.edu. Retrieved 2026-01-29.
2. M.K. Badawy (1998), Technology Management Education: Alternative Models. California Management Review. 40 (4), pp. 94–115
3. "CIO vs CTO: What's the difference? | McKinsey". www.mckinsey.com. Retrieved 2025-03-04.
4. "Strategic Planning". U.S. Office of Personnel Management. Retrieved 2026-01-29.