LMD Consulting - your "last mile" delivery partner

We are with Michael Porter who said that for most organizations, there is no cost and quality tradeoff. This is especially true of IT organizations that are grossly sub-optimal. Michael Porter defined a concept of "efficient frontier" that represented organization's maximum output in form of quality at various cost points. Until the organization reaches that frontier, there is rarely a tradeoff between the two.

To arrive at the efficient frontier, IT organizations need to adopt best practices to achieve most out of their organizations. IT Governance helps organizations adopt best practices and creates a way for them to move towards the efficient frontier. The efficient frontier reflects organization's maximum output for a given cost and quality constraints. Movements along the efficient frontier are possible only if changes are made to cost or quality.

The cost and quality graph can be generalized. Cost could represent organizational constraints not only in terms of financial cost, but also regulatory or resource constraints. Similarly, quality could reflect organization's total output in terms of its products, services and customer satisfaction.