A Structured Approach to MIS Productivity Measurement

The current emphasis on productivity in management information system (MIS) departments has given rise to 2 major issues: 1. Productivity is meaningful only within the context of corporate and departmental goal structures. 2. Productivity must find a balance between efficiency and effectiveness. A structured approach to productivity measurement was field tested in the information services (IS) department of a large oil field equipment firm. After some preliminary steps, 2 groups of department and project managers designed a set of effectiveness measures and a set of efficiency measures for the department. They also identified several alternative methods of valuing IS products, including: 1. internal pricing, 2. time-share comparison, 3. market value comparison, and 4. development cost versus return on investment. This discovery process yielded departmental dividends in communication, goal focusing, and attention to IS productivity questions.