Information security management helps in administering programs, access controls, policies, and also operations to develop a security strategy. There is a need for a performance measurement system to evaluate all the strategy, information security controls, and parameters defining security. In simple words, a balanced scorecard used to optimize performance measures in an information security organization.
Four perspectives of Balance scorecard
There are four perspectives of balanced scorecard in an organization:
- Financial Perspective
- Customer Perspective
- Internal-Business-Process Perspective
- The Learning and Growth Perspective
The Balanced scorecard helps in achieving strategic objectives, which further help in attaining sub strategic objectives.
Balanced scorecard for strategic IT management
There are some areas for which a balanced scorecard helps in strategic IT management. Such as delivering the successful delivering financial value to shareholders (financial perspective). The contribution in value of business achieved by the business value perspective. Determining this contribution also determines whether the IT department is contributing up to the mark or not. The user orientation perspective and customer perspective determine the credibility of the IT department for the users. Does it determine whether the IT department is fulfilling the customer’s needs or not? There is a process-based view (an internal perspective) for satisfying the customers and shareholders for promoting effectiveness and efficiency in an organization. The balanced scorecard also delivers a learning and growth perspective for making the organization ready to face future challenges.
Learning and growth perspective
The Balanced Scorecard is like a system for managing the crucial activities. It’s a way of looking at our organization that focuses on our big-picture strategic goals. It also helps us to choose the right things to measure so that we can reach those goals.
KPIs (Key Performance Indicators) are a tool business use to measure just how effectively they are achieving their goals. They are also implemented in a company or a specific department to determine whether the departments are working fine or not. It identifies the achievement of goals and highlights the flaws that are a hurdle in achieving the goals.
There is one KPI metric for each strategy for deploying the better plan, also periodically mentioning the tips for bringing betterment in tasks.
So, for defining the best outcome or progress towards a specific objective, KPIs are quite helpful. There are strategic KPIs that monitor the effectiveness and implementation of an organization’s information security strategies. It also determines the gap between the targeted performance and actual point after determining that it ensures the organization’s effectiveness and operational efficiency.
What is KPI, and how can we set KPI for our organization?
KPI is a “key performance indicator.” A constant and measurable value that a company is achieving key business objectives. Key business objectives in an organization can be employ and management performance, scalability, productivity, business growth, profitability, market share, and innovation. Organizations use KPIs at different levels to evaluate their success at reaching targets.
KPIs should be:
- Time-bound (Smart)
- Delivers a common language for communication
- Provide an objective way to see if the strategy is working
- parameters to measure the accomplishments, not just of the work that is performed
- A comparison guide to better compare the past mistakes and helping in boosting the activities in an effective way
- Assisting employees in considering more towards real problems through proper training and also triggering attention towards crucial activities
- Help reduce intangible uncertainty
Role of balanced scorecard in developing KPIs
A “balanced scorecard” is a performance measuring metric used in strategic management to identify the problems and to improve various internal functions of a business and its resulting external outcomes. It is used to measure and provide feedback to organizations.
Balance scorecard is one of the methods of defining strategic management solutions and the KPI’s in an organization.
To apply information security performance in the balanced scorecard in an organization
Suppose there is an organization such as NADRA (National Database and registration authority). It statistically manages the sensitive registration databases and regulates government databases of all the national citizens. Here in this organization, information security performance in the balanced scorecard should be up to mark. Because it issues the “computerized national identity cards” to the citizens of Pakistan. It also maintains their sensitive information upgraded in the government databases and securing the citizens’ national identities from theft. To apply information security performance in the balanced scorecard for an organization such as NADRA, we must take the following measures:
- Confidentiality, integrity, availability, the authenticity of customers, and employee data must be ensured.
- Performance measurement
- Value delivery
- Strategic KPIs to monitor the implementation and effectiveness of NADRA’s strategies, determine the gap between actual and targeted performance and determine organizational effectiveness and operational efficiency
- Strategic alignment
- Physical information security controls
- Technical and logical security controls
- Information resource management
- Employee management
- Information risk management and also incident handling
- Corporate culture and top management support
- Information security policy and compliance
- Security management maturity
- Third-party relationships
- External environment connections
The parameters mentioned above can also be deployed in the banking sector.
Taking an example of the Banking Organization, the main objective of banks is to increase their revenues, increase the number of branches according to the customer’s needs, and make strategies by giving attractive packages to customers so that more customers open their accounts, thus allowing the availability of ATMs and many more. To apply information security performance in the balanced scorecard for banking, we must take the measures mentioned above.
Some organizations consider information security a burden for business agility and productivity. But it’s not like that if you implement the information security controls and standards in a proper manner. And also, utilize the balanced scorecard for measuring efficiency and business activities periodically, then strengthen the cybersecurity and business productivity at the same time. If you want to be successful, then you will have to take digital security seriously. But neglecting business productivity while implementing information security is not good. So, considers the metrics mentioned above and also work to eliminate the value of negative information security.