Chapter 13 Managing the Information Technology Resource 1
Chapter 13
Measuring, Reporting, and Controlling
True-False Questions
1.
Revenue per IT dollar is considered a qualitative IT measurement.
2.
User satisfaction survey results are considered a qualitative IT measurement.
3.
Each of the 38 IT processes should have a defined IT performance measurement plan.
4.
Benchmarks are a necessary part of the IT measurement process.
5.
The first step in the benchmarking process is to recalibrate existing benchmarks.
6.
Measurements are often best when they can forecast trends.
7.
The “reliability” dimension of service quality refers to the willingness/readiness of
employees to provide service in a timely manner (promptness).
8.
The “competence” dimension of service quality refers to possession of the required skills and
knowledge to perform the service.
9.
The “access” dimension of service quality refers to the approachability and ease of contact
and convenient hours and location.
2 Managing the Information Technology Resource
10.
Operational managers in IT have the same IT performance reporting objectives as middle
managers.
11.
A characteristic of an effective service level agreement is for it to be based on historical
expectations.
12.
A characteristic of an effective service level agreement is that it should use benchmarks.
13.
Average throughput is an example of a service level metric.
14.
Service level agreements will result in higher service levels.
15.
Service level agreements are not necessary when outsourcing IT functions.
Multiple Choice Questions
16.
Each of the following is a quantitative IT measure except:
a. expenditures per employee.
b. user satisfaction.
c. sales revenues generated by IT initiatives.
d. costs per MIPS.
17.
Each of the following is a qualitative IT measurement, requiring interpretation, except:
a. user service level agreements.
b. user satisfaction survey of applications.
c. IT yield.
d. return on investment by project.
Chapter 13 Managing the Information Technology Resource 3
18.
Each of the following is a step in the 10-step approach to developing measurements except:
a. establish guidelines to measure if, and to what degree, critical success factors are met.
b. obtaining a commitment of resources, time, and cooperation from senior business and IT
management.
c. develop a formal strategic plan, mission statements, and goals.
d. implement a customer satisfaction measurement process.
19.
Which of the following in the 10-step approach to developing measurements is the step that
is most likely to be the most time-consuming part of the process?
a. Establish guidelines to measure if, and to what degree, critical success factors are met.
b. Obtaining a commitment of resources, time, and cooperation from senior business and IT
management.
c. Develop a formal strategic plan, mission statements, and goals.
d. Perform a complete pilot with the participation of both IT and the business.
.
20.
Each of the following are determinants, or dimensions, of service quality except:
a. reliability.
b. cost.
c. responsiveness.
d. competence.
21.
Which of the following best describes the determinant, or dimension, of service quality that
is physical evidence of the service, including facilities, personnel appearance, tools or
equipment, etc.?
a. Tangibles
b. Access
c. Credibility
d. Security
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22.
Which of the following best describes the reporting objectives of operational level managers?
a. Application availability, backup measures, and maintenance schedules
b. Which sales locations could not transmit their data
c. System availability, locations affected by outages, and patterns of disruption due to
outages
d. What is IT delivering as compared to the strategic plans of the firm
23.
Which of the following best describes the reporting objectives of knowledge and data
workers?
a. Application availability, backup measures, and maintenance schedules
b. Which sales locations could not transmit their data
c. System availability, locations affected by outages, and patterns of disruption due to
outages
d. What is IT delivering as compared to the strategic plans of the firm
24.
Which of the following best describes the reporting objectives of middle managers?
a. Application availability, backup measures, and maintenance schedules
b. Which sales locations could not transmit their data
c. System availability, locations affected by outages, and patterns of disruption due to
outages
d. What is IT delivering as compared to the strategic plans of the firm
25.
Which of the following best describes the reporting objectives of senior managers and
executives?
a. Application availability, backup measures, and maintenance schedules
b. Which sales locations could not transmit their data
c. System availability, locations affected by outages, and patterns of disruption due to
outages
d. What is IT delivering as compared to the strategic plans of the firm
Chapter 13 Managing the Information Technology Resource 5
26.
Each of the following is one of the best characteristics of effective service level agreements
(SLAs) except:
a. agreements are adjusted periodically.
b. agreements are defined by location, function, and service type.
c. agreements specify minimums, penalties, and incentives.
d. agreements are based on historical occurrences.
27.
Which of the following best describes a contract between two interested parties for agreed
upon costs and services?
a. CSFs
b. performance measurements.
c. SLAs
d. benchmarking
28.
Each of the following is a primary area that needs to be established for all service level
agreements except:
a. tools.
b. expectations.
c. renewal/renegotiation.
d. measurements.
29.
Each of the following is a service level agreement myth except:
a. SLAs will make users happy.
b. SLAs are necessary when outsourcing IT functions.
c. penalty clauses in a SLA will guarantee service levels.
d. service level agreements will result in higher service levels.
30.
Each of the following is a common method for performance measurement except:
a. benchmarking.
b. sensitivity analysis.
c. satisfaction surveys.
d. trend analysis.
6 Managing the Information Technology Resource
Fill In the Blanks
Sales revenue generated by IT initiatives is considered to be a qualitative IT measurement.
Reference: p. 353
33.
Reference: p. 353
service as beginning points for the measurement process.
Reference: p. 359
34.
The continuous benchmarking method consists of a total of seven steps.
The IT process of “data planning,” with a strategic goal to facilitate reuse, a critical success
factor to create common models, and a measurement of number of common objects, is an
Reference: p. 359
Reference: p. 359
define, prioritize, invest, contract, finance, and deliver an implementation.
Reference: p. 359
37.
facilities, personnel appearance, and tools or equipment is best described as tangibles.
The service quality dimension that pertains to physical evidence of the service, including
Reference: p. 362
understand and listening to them is best described as communications.
38.
The service quality dimension that pertains to keeping customers informed in language they
Reference: p. 362
friendliness of contact personnel is best described as courtesy.
39.
The service quality dimension that pertains to politeness, respect, consideration, and
Reference: p. 362
Chapter 13 Managing the Information Technology Resource 7
response times, system availability, backup measures and maintenance schedules.
Reference: p. 364
41.
42.
locations could not transmit.
Reference: p. 364
43.
A(n) service level agreement best describes a contract between two interested parties for
is delivering as compared to the strategic plans of the firm.
Reference: p. 365
agreed upon costs and services.
Reference: p. 366
44.
Service level agreements should be used with internal business and IT partners as well as
Reference: p. 371
45.
“Penalty clauses in a service level agreement will guarantee service levels” is an example of
Essay Questions
46.
List two quantitative and two qualitative IT measurements and what makes them qualitative
or quantitative.
8 Managing the Information Technology Resource
47.
Using one of the 38 IT processes, give an example of the measurement process by listing the
process, an associated strategic goal, its critical success factor, and a measurement of its
success:
48.
Every IT process has one or more reporting objectives. Explain some of the reporting
objectives of operational managers in IT and how knowledge and data workers reporting
objectives are different.
49.
List and describe one of the seven characteristics of highly effective service level agreements.
50.
Describe a service level agreement “myth” and why it is unfounded.
Chapter 13 Managing the Information Technology Resource 9