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

Defining key performance indicators (KPIs) is a critical step before implementing an IT balanced scorecard because KPIs establish measurable values that reflect how effectively an organization is achieving key business objectives. They serve as a foundation for tracking and assessing performance in various aspects of IT and business operations.

When organizations articulate their KPIs, they create specific criteria to evaluate success, ensuring that the balanced scorecard aligns with strategic goals. This alignment allows for better decision-making, helps prioritize initiatives, and facilitates communication about performance across different levels of the organization. Without clearly defined KPIs, it becomes challenging to gauge the effectiveness of IT efforts, making it difficult to achieve desired business outcomes and improvements.

In the context of the other options, while delivering effective services, demonstrating the business value of IT projects, and controlling IT expenses are all important considerations for an organization, they become meaningful and actionable only when underpinned by the quantifiable measures that KPIs provide. Thus, the establishment of KPIs is essential for guiding and evaluating the entire process of implementing an IT balanced scorecard.