Number of IT FTEs that perform the process group "manage IT knowledge" per $1 billion revenue
This measure calculates average number of full time equivalents (FTEs) who perform the process group "manage IT knowledge" per $1 billion revenue. The Process group "manage IT knowledge" includes [Managing IT knowledge within an enterprise includes managing knowledge related to the industry and business of the enterprise served by IT; managing knowledge of the important business processes and business functions supported by the services and solutions developed and maintained by IT; managing knowledge of the enterprise’s information, application, and technology infrastructure architectures and of the services and solutions provided; managing knowledge of processes and techniques for developing, maintaining, and delivering services and solutions; and managing knowledge of the current and emerging technologies underlying the services and solutions provided. The goals of managing IT knowledge are to determine the knowledge requirements of the IT function; to establish objectives and priorities for knowledge within IT that are aligned with IT strategies and priorities; to establish knowledge management policy for the IT function; and to monitor, analyze, and report on the use and management of knowledge by IT resources.]. This Process Efficiency measure is intended to help companies minimize waste and refine resource consumption related to the process group "Manage IT knowledge".
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Compute this Measure
Units for this measure are FTEs.
Number of FTEs who perform the process group "manage IT knowledge" / (Total business entity revenue * .000000001)
Key Terms
Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.
To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.
For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:
20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting
20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting
Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.