91% of Companies Need Improvement When It Comes to Performance Management



For digital businesses, the importance of applications can’t be exaggerated. If applications don’t work or underperform, there is a substantial impact on business. The estimated cost of downtime for the Fortune 1000 is between $1.25 billion and $2.5 billion every year[1].

Based on that figure alone, it’s easy to see why having a holistic approach to performance management is a business imperative. That approach, which is the combination of technologies, people, and processes that help keep apps and other digital services up and running at top-notch speeds, is especially important for driving business agility and innovation.

But what are the actual business outcomes of holistic performance management? And what characteristics do IT organizations share that excel at such practices? We at Riverbed wondered the same thing. That’s why we recently commissioned a survey with ESG to assess enterprise performance management practices and develop a data-driven model to correlate maturity to other behaviors and outcomes.

The results were quite compelling, and you can download the full research report here. But here’s a quick summary. Participants were evaluated on four dimensions of performance management maturity:

  1. Business alignment: Vision, strategy, metrics, and measurement
  2. Organization: People, leadership, and collaboration
  3. Process: Documentation, consistency, and continuous improvement
  4. Technology: Tools, capabilities, and integration

Each possible response to each question in the areas listed above was assigned a point value. Scoring was designed to give each segmentation criteria roughly equal weight while still ensuring particularly forward-looking behaviors were given an appropriately high maturity score.

Respondents could earn a maximum of 40 maturity points and were segmented as follows:

  • Nascent: 0-13 points
  • Aspiring: 14-26 points
  • Expert: 27-40 points

When all was said and done, only 9% of participants were rated as Experts, while 63% were Aspiring, and 28% were Nascent.

The survey then found clear correlations between Expert organizations and several app KPIs such as meeting development timelines, increasing application availability, and having broader use of transformative technologies like cloud. But more specifically, Experts experience:

Perhaps most important of all, IT teams at Expert organizations are viewed by their line-of-business stakeholders as competitive differentiators at nearly 7X the frequency of Nascent organizations and 4X the frequency of Aspiring organizations.

So the bottom line is that performance management experts clearly make an impact on, well…the business bottom line. That said, 91% of respondents need to improve their ratings to make similar business impacts (and let’s face it, Experts would probably tell you they have room for improvement, too).

Assess your performance management maturity

Read the full research report to learn what other behaviors and characteristics Expert organizations exhibit.

Then, see how your organization compares by completing our self-assessment to understand your strengths and weaknesses and gain recommendations on how to improve.



[1] IDC, ‘DevOps and the Cost of Downtime: Fortune 1000 Best Practice Metrics Quantified,’ Dec. 2014


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