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ssss1 CIO Performance Matrix

In the top left, we see the case where things are running smoothly with reliable systems, but costs are above industry averages. This is where outsourcing talk happens. Be wary; the CFO is definitely having a fancy dinner with a global outsourcing company. In other words, if the systems are stable while your costs are above industry averages, you become fodder for outsourcing talk. The CFO and CEO are being approached on a regular basis with the promise of lower IT costs. Once you're externally benchmarked, things get dicey. Benchmarks compare you to everyone, including companies with low IT costs and low IT capabilities. Whether or not it's a well-run IT department becomes irrelevant.

The holy grail is lean and efficient IT. In the top-right box, your team has the time and funding to work on strategic projects. As a superstar leader, you remember that keeping the lights on remains the most important priority, so you never lose focus on the foundation as you take the next step up the Laudato Hierarchy of IT Needs pyramid and begin to create value.