Craig Symons Vice President Forrester Research

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Craig Symons Vice President Forrester Research

  1. 1. June 4, 2007. Call in at 12:55 p.m. Eastern Time Craig Symons Vice President Forrester Research Teleconference IT Steering Committee Best Practices
  2. 2. Theme Favorable outcomes are the result of quality decision-making.
  3. 3. Agenda <ul><li>IT steering committees in context </li></ul><ul><li>The current state of steering committee practices </li></ul><ul><li>Best practices for IT steering committees </li></ul><ul><li>Recommendations </li></ul>
  4. 4. IT governance Maximize the value of IT-enabled business change Governance framework WHO WHAT HOW Governance structures Governance communications Governance processes
  5. 5. IT governance structures Board level IT management level Executive level IT management level IT strategy committee IT technology council IT steering committee IT architecture review board Provides direction to management relative to IT strategy Provides direction to IT and the business relative to IT projects Provides technology guidelines and standards Provides architecture guidelines and verifies compliance
  6. 6. Agenda <ul><li>IT steering committees in context </li></ul><ul><li>The current state of steering committee practices </li></ul><ul><li>Best practices for IT steering committees </li></ul><ul><li>Recommendations </li></ul>
  7. 7. Survey demographics Base: 304 IT decision-makers Base: 304 IT decision-makers
  8. 8. Do you have an IT steering or investment committee to review proposed IT investments? Base: 304 IT decision-makers
  9. 9. Two-up pie chart (double-click to edit) Ultimate authority to approve IT investments? Reports to Base: 304 IT decision-makers Base: 304 IT decision-makers
  10. 10. Who is on the committee? Base: 304 IT decision-makers
  11. 11. How often does the committee meet? Base: 304 IT decision-makers
  12. 12. Agenda <ul><li>IT steering committees in context </li></ul><ul><li>The current state of steering committee practices </li></ul><ul><li>Best practices for IT steering committees </li></ul><ul><li>Recommendations </li></ul>
  13. 13. Best practice #1: Involve the right people Office of the CEO BU1 BU2 BUn Finance & admin Sales & mkting IT steering committee IT budget PMO
  14. 14. Best practice #2: Use the business case as a common language 1. Fact sheet <ul><li>6. Optimizing </li></ul><ul><ul><li>risk and return </li></ul></ul>7. Documentation 8. Maintenance 2. Alignment 3. Financial benefits 4. Nonfinancial benefits 5. Risks <ul><li>Alignment with strategic objectives </li></ul><ul><li>Alignment with enterprise architecture </li></ul><ul><li>Delivery risk </li></ul><ul><li>Benefits risk </li></ul>
  15. 15. Best practice #3: Use active portfolio mgmt. Project portfolio management All business case proposals Approved business case proposals Prioritized active projects Active business case proposals Evaluate Accept Sequence Review
  16. 16. Best practice #4: Hold people accountable Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2006 2007 2008 300 200 100 0 100 200 300 Cumulative cash flow S-curve indicating cash-flow movement over the investment life cycle Time-to-market (Project completion) Initiation Net gain (value) Payback period Retirement Source: Forrester Research, SeaQuation, IT Governance Institute Planned enhancement 1 Planned enhancement 2 Estimated Actual
  17. 17. Best practice #5: Use the PMO Development Maintenance and testing Operations Project managers IT OCIO <ul><li>Process management </li></ul><ul><li>Workflow controls </li></ul><ul><li>Messaging </li></ul><ul><li>Portfolio reporting </li></ul><ul><li>Metrics </li></ul>PMO portfolio management metrics CIO Line of Business Line of Business Line of Business Line of business Work requests <ul><li>Strategic planning input </li></ul><ul><li>Steering committee participation </li></ul>
  18. 18. Recommendations <ul><li>Ensure alignment between business strategy and IT strategy. </li></ul><ul><li>Review and approve all requests for discretionary IT funding (above a set threshold). </li></ul><ul><li>Prioritize all current IT investments. </li></ul><ul><li>Periodically review current IT investments and make buy/sell/hold decisions. </li></ul><ul><li>Communicate IT/business strategy and direction. </li></ul>
  19. 19. Thank you Craig Symons +1 732.892.4799 [email_address] www.forrester.com

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