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IT Governance Introduction


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This is a brief overview of IT Governance issues and how to approach improving IT governance.

IT Governance Introduction

  1. 1. IT Governance from the – Organisational Imperative Collection – An Introduction <ul><li>Contents </li></ul><ul><li>CIO Challenges </li></ul><ul><li>Governance Definition </li></ul><ul><li>IT Governance Challenge </li></ul><ul><li>Symptoms of Ineffective Governance </li></ul><ul><li>Measuring Effectiveness </li></ul><ul><li>Governance Processes </li></ul><ul><li>Designing Governance </li></ul><ul><li>Next Steps </li></ul>
  2. 2. CIO Challenges Revenue Increases Complexity Compliance Profitability CIO Innovation
  3. 3. What keeps the CIO up at night? - It may not be what you think. Stories of phone calls at 3 a.m. that the network is down or that a critical customer interface has gone awry are part of the CIO’s daily grind. But in the changing world of today’s CIO where ‘keeping the lights on’ has become the price of admission, increasing focus on delivering business value drives new challenges in IT Governance.
  4. 4. Governance – What is it? <ul><li>In their highly regarded book “IT Governance” Peter Weill and Jeanne W. Ross define IT governance as: </li></ul><ul><li>“ specifying the decision rights and accountability framework to encourage desirable behaviour in using IT” </li></ul><ul><li>This definition establishes a few key dimensions in which IT governance is understood, refined, and evolved. </li></ul>
  5. 5. What is IT Governance? <ul><li>IT Governance addresses three key management decisions: </li></ul>Source: MIT Sloan Center for Information Systems Research (CITR). Management Decisions Governance Trade-Offs <ul><ul><li>What decisions need to be made? </li></ul></ul><ul><ul><li>Who has decision and input rights? </li></ul></ul><ul><ul><li>How are the decisions formed and enacted? </li></ul></ul><ul><ul><li>Enterprise scope vs. LOB scope </li></ul></ul><ul><ul><li>IT involvement vs. business involvement </li></ul></ul><ul><ul><li>All LOBs vs. some LOBs </li></ul></ul><ul><ul><li>Mix of required bodies, roles and processes (e.g. chargeback, service level management) </li></ul></ul>
  6. 6. The Challenge of IT Governance <ul><li>Organisational Behaviour </li></ul><ul><ul><li>Current </li></ul></ul><ul><ul><li>Desired </li></ul></ul><ul><li>Governance Archetypes </li></ul><ul><ul><li>Business R&R </li></ul></ul><ul><ul><li>IT R&R </li></ul></ul><ul><li>Governance Mechanisms </li></ul><ul><ul><li>Decision making structures </li></ul></ul><ul><ul><li>Alignment processes </li></ul></ul><ul><ul><li>Communication Approaches </li></ul></ul>
  7. 7. Symptoms of Governance Ineffectiveness <ul><li>Executives perceive lower than expected value from IT investments </li></ul><ul><li>IT is a barrier rather than an enabler for New Strategies </li></ul><ul><li>IT decisions are inconsistent and/or protracted. </li></ul><ul><li>Management does not know how IT decisions are made. </li></ul><ul><li>IT Projects are challenged to meet expected schedule, budget, and/or functional requirements. </li></ul><ul><li>Outsourcing is perceived as an alternative to in-house IT delivery. </li></ul><ul><li>IT Governance is fluid. </li></ul>
  8. 8. Measuring Governance Effectiveness <ul><li>Measuring performance of existing governance is often a prerequisite to understanding where the problem lies and should help identify suitable strategies for enhancing performance. </li></ul><ul><li>Typical means of measuring effectiveness are through interviews and surveys to determine the organisational capability in the areas of: </li></ul><ul><li>Governance Outcomes </li></ul><ul><li>Success Measures </li></ul><ul><li>Identify effective and ineffective areas of governance </li></ul>Source: “IT Governance” by Peter Weill and Jeanne W. Ross
  9. 9. IT Governance Processes Original Framework Sourced from Gartner
  10. 10. Designing Effective and Efficient IT Governance <ul><li>“ A fixed or predetermined policy or mode of action.” </li></ul><ul><li>A basic or essential quality or element determining intrinsic nature or characteristic behavior…” </li></ul><ul><li>A rule or law concerning the functioning of natural phenomena or mechanical processes…” </li></ul><ul><li>The Guiding Principles are used in conjunction with the IT architecture, IT infrastructure, business application needs, and IT investment prioritisation to support the business to evaluate governance design alternatives and develop an overall design for the IT function. </li></ul><ul><li>Leading Practices </li></ul><ul><ul><li>The guiding principles should directly reflect the strategic intent of the organization </li></ul></ul><ul><ul><li>The guiding principles should define the role of the organization design in supporting the strategy </li></ul></ul><ul><ul><li>Guiding principles should ideally be used to generate, evaluate and select design alternatives </li></ul></ul>Guiding Principles Definitions are from
  11. 11. Next Steps <ul><li>Establish a Business Case for IT Governance </li></ul><ul><li>IT Governance Maturity and Performance Assessment </li></ul><ul><li>Establish the “Desired” State </li></ul><ul><li>Define the IT Governance Improvement Plan </li></ul><ul><li>Execute! </li></ul>