Before implementing an IT balanced scorecard, what must an organization define?

Defining key performance indicators (KPIs) is crucial before implementing an IT balanced scorecard because these metrics provide a measurable way to assess the performance and success of IT strategies in relation to organizational goals. KPIs serve as benchmarks for evaluating the effectiveness of IT initiatives, ensuring that they align with the broader objectives of the organization.

When KPIs are established, they guide the organization in focusing on what is important to measure and improve, facilitating strategic decision-making and resource allocation. They also help in communicating performance expectations throughout the organization, ensuring that all stakeholders understand the criteria for success. Without well-defined KPIs, the organization would lack a reliable framework to evaluate IT performance effectively, making it difficult to achieve strategic alignment and continuous improvement.

In summary, clear KPIs lay the foundation for an effective IT balanced scorecard by providing the necessary metrics to monitor progress and drive strategic initiatives forward.